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Agricultural Credit Guarantee Scheme Fund (ACGSF)

Self Help Group Linkage Banking

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The Self-Help Group Linkage programme was launched under the Agricultural Credit Guarantee Scheme (ACGS) in 1991 and became operational in 1992. Under the programme, farmers are encouraged to form themselves into groups of between 5 and 15 on the basis of common purpose (informal and informal). The groups are encouraged to undertake regular savings with a partner bank of their choice. After operating such savings for six months, they could then apply to the partner bank for loan. The amount saved provides part cash security for loans to saving groups.

Bank loans to the groups are normally in multiples of the balance in their savings account at the time of the application for the loan. The group savings security would not be drawn on until the loans are fully repaid. The aim of the Self-Help Group Linkage Banking is to inculcate the culture of savings and banking habit in group members as well enable them to build up resources for financing their farm projects without recourse to bank borrowing on the long run.

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Facts : 1/1/1900
London Club of Creditors:These are mainly uninsured and unguaranteed debts extended by commercial banks to nationals of debtor nations. Members of the club are commercial banks mainly in industrialized countries. The first London club meeting was held in 1976 to discuss re-payment and conclude re-structuring agreements.
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