Wilson, Kim Wilson.

“The New Microfinance: An Essay on the Self-Help Movement in

India.” Journal of Microfinance. Vol. 5:1 (Spring 2003).
Drawing from the experience of the Self Help Group (SHG) movement in India, this
paper differentiates between the emerging and traditional microfinance. In contrast to
traditional, “old” microfinance, the SHG-bank linkage program, which according to the
author represents new microfinance, is characterized by: simple rules made by groups;
multiple actors providing organizing, savings, and credit services; growth often resulting
from "ripple effect;" self-sufficiency sought at group level; group level rates charged to
individual members often range between 24%–60%, while bank charges 12–13% to the
groups. The author concludes that the “new microfinance” as demonstrated by the SHG
movement has definite advantages.