This chapter is divided in to four sections. Section A takes review of SHG–Bank Linkage Programme and role of banks as supportive institutions in India. Section II highlights on progress of SBLP in Maharashtra. Section III speaks on Micro Finance Institutions–SHG linkage programme. Section IV discusses on Role of NABARD Section I: Self help groups–Bank Linkage Programme NABARD developed SHG–Bank Linkage approach in order to enhance the outreach of banks to the poor. SHG–Banking Linkage is a programme which facilitates financial transactions between the formal banking and self help groups as clients. A SHG is a group of 15–20 people from homogeneous class, who come together for discussing and solving their common problems. They are encouraged to make voluntary savings on regular basis. Out of the pooled resources, the members are assisted with small interest beå loans. In the process, the members learn to prioritize their needs, accounting of transactions and making rules and regulations. The financial resources of the groups generated through savings and other funds are termed as ′ Hard money.′ Another significant concept is ′Cold money′ which consists of loan funds or grants obtained from financial institutions. Assessing the financial behavior and discipline of the group, the bank makes loan to the group on the basis of savings deposited with it. The loan is given without collateral. Peer pressure ensures timely repayment of loans.