A large portion of Indian population has limited access to formal banking. The credit needs of this segment, which is primarily low income, are largely met by informal channels such as money lenders, traders, family and friends, etc, which has its own limitations and micro finance refers to such a particular sub set of financial services which provides small loans to very poor families, most often without any collateral. One of the models designed to provide access to formal sources of finance to this segment of under-banked population is the Self Help Group - Bank Linkage Program (SBLP) which was formally launched in India in 1992 by NABARD. The aim was to improve rural poor’s access to formal credit system in a cost effective manner by making use of SHGs Under this program, group of 10-20 individuals are organized into groups known as Self Help Groups (SHGs) by NGOs, commonly known as Self Help Promoting Institutions (SHPIs). The SHGs are also encouraged to take up livelihood activities for which skill training is provided by certain NGOs. The members of SHG are encouraged to save and internally lend the savings to members at the time of need.