The Self-Help Group Bank Linkage Programme has emerged as India's largest microfinance initiative, playing a pivotal role in promoting financial inclusion by reaching 178 million rural households. In 2023-24, loans of ₹2.09 trillion were disbursed to 5.48 million self-help groups, marking a 28% increase in the number of self-help groups and a 44% rise in disbursement value from the preceding year. The total outstanding loan portfolio stood at ₹2.60 trillion across 7.74 million self-help groups, with an average loan size of ₹380,000 per self-help group, indicating enhanced financial engagement and credit absorption.The programme maintained a low non-performing asset ratio of 2%, reflecting a 27% improvement over the previous year and demonstrating strong credit discipline among self-help group members. The sector has also witnessed a significant growth, driven by microfinance institutions. The gross loan portfolio in microfinance as of 2023-24 was ₹4.34 trillion, an 8.8% increase from ₹3.99 trillion a year before. This figure is projected to grow further in 2024-25.
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