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Microfinance and Self-Help Groups in India

Government Programmes: NRLM and Kudumbashree

The National Rural Livelihoods Mission and Kerala's Kudumbashree build women's groups into large networks.

Governments run large women’s group programmes.

NRLM

The Deendayal Antyodaya Yojana-NRLM, launched in 2011, forms women’s groups across rural India.

Federations

Groups join into village and cluster federations that can negotiate and manage larger funds.

Kudumbashree

Kerala’s programme, begun in 1998, organises millions of women into neighbourhood groups running microenterprises.

Impact

These programmes combine credit with training, market linkage and social support.

A group business

A women's group runs a catering unit, supplying meals to a local school.

Assuming credit alone is enough

Markets and skills are equally important.

Key takeaways
  • NRLM covers rural India.
  • Federations scale up groups.
  • Kudumbashree began in Kerala.
  • Support goes beyond credit.
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