An Initiative of Government of Bihar for Poverty Alleviation

Bihar Rural Livelihoods Promotion Society
State Rural Livelihoods Mission, Bihar

Micro Finance Initiatives

The targeted outcome of this sub-component is to enable 44,100 SHGs of poor households develop and manage a microfinance portfolio of Rs. 285.47 crores ($ 68 million), including cumulative group savings of Rs. 34.30 crores ($ 08 million), cumulative interest accrual of Rs. 26 crores ($ 6 million), cumulative loans from commercial banks of Rs. 51.40 crores ($12 million) and cumulative community investment fund of Rs. 174 crores ($ 41 million). This will be achieved by creating, developing and nurturing microfinance across the hierarchy of self-managed community based organizations with self help groups (SHG) as building block.

The broader goal of the Micro-Finance intervention through the project is to create an ambience of faith as regards the approach of banking with the poor. It is aimed at creating institutions of the poor who are empowered enough to run the institution on merits of financial prudence and sustainability. It also aims at taking multi-pronged strategy for ensuring financial flow to the rural economy from main stream financial institutions and other complementary sources like that of SHPIs and MFIs. In addition, the medium term objective of sub-component is as follows:


  • To ensure that assets are created and incomes are improved for the community based organizations (CBOs) established or strengthened in the project.
  • To facilitate the poor to convert their secure asset base into an economically viable, improved and sustainable living;
  • Facilitate bookkeeping and accounting systems for CBOs for promoting transparency, accountability and ambience of faith for other stakeholders.