♤ Bank led approach:

o Self Help Group – Bank Led Initiative (SLBP): major institutional based innovation in India for enabling access and covering the gap of reaching financially excluded population of the country in the last two decades.

o In this model, the banks involve themselves with a group of local people with the idea of enabling them to pool up their savings. The same is deposited with the bank against which the bank also provides a certain amount of credit facility. The group takes a decision to whether to lend to any member of the group.

o The bank provides the framework, accounting services and support to the group to manage their deposits and lending. Thus the model has an approach of savings first, lending later.