A Study on Financing Self-Help Groups by NBFCS

1.               BAGATHI VASUDEV RAO (24UJ1E00K1) Student of 2nd Year MBA,

Malla Reddy Engineering College and Management Sciences, Medchal, Hyderabad – 501 401.

2.               DR INAGANTI BADE SAHEB, Professor, Dept of MBA in

Malla Reddy Engineering College and Management Sciences, Medchal, Hyderabad – 501 401.

ABSTRACT

Self-Help Groups (SHGs) are instruments for financial inclusion, rural development, women’s empowerment, entrepreneurship, and poverty reduction in India. Non-Banking Financial Companies (NBFCs) provide credit and financial services to SHGs, where access to conventional banking is limited. This study examines NBFC financing of SHGs, focusing on credit accessibility, loan utilization, income generation, financial inclusion, repayment experience, and socioeconomic development. Primary data were collected from 120 SHG members through a structured questionnaire and analyzed using percentage analysis. The findings show that NBFC finance supports business expansion, income growth, and financial inclusion, although repayment difficulties, documentation, interest costs, and financial literacy remain challenges.

Keywords: Self-Help Groups, NBFC Financing, Financial Inclusion, Microfinance, Women Empowerment