Full formBanking & Finance
CLMstands forCredit Linked Microfinance
Full Form of CLM
What is CLM?
Credit Linked Microfinance (CLM) is a financial product designed to extend small loans to low-income individuals and groups, particularly in rural and semi-urban areas of India, who lack access to traditional banking services. It operates through microfinance institutions (MFIs) and self-help groups (SHGs), linking credit with savings, insurance, and capacity-building initiatives. CLM is a key tool for financial inclusion, often supported by schemes like the National Bank for Agriculture and Rural Development (NABARD) and the Micro Units Development and Refinance Agency (MUDRA). In India, CLM is used extensively in priority sector lending mandates of banks, helping meet targets for lending to weaker sections. The product typically involves group lending, peer pressure for repayment, and graduated credit limits. It has gained prominence since the 1990s, especially after the formation of NABARD’s SHG-Bank Linkage Programme. For banking examinations such as RBI Grade B, NABARD Grade A, and SBI PO, understanding CLM is crucial as it appears in questions on rural finance, financial inclusion, and government schemes. CLM not only empowers women and marginalised communities but also serves as a catalyst for local economic development.
CLM का फुल फॉर्म
ऋण से जुड़ी लघु वित्त
Example
Under the NABARD SHG-Bank Linkage Programme, the bank extended a CLM loan of ₹2 lakh to a women's self-help group in Tamil Nadu for starting a tailoring business.
CLM — frequently asked questions
What is the full form of CLM?
The full form of CLM is Credit Linked Microfinance.
How does CLM benefit rural women in India?
CLM groups rural women into self-help groups (SHGs) to provide small loans without collateral, enabling them to start income-generating activities, build savings, and improve family livelihoods.
Which Indian government scheme supports CLM?
The National Bank for Agriculture and Rural Development (NABARD) promotes CLM through the SHG-Bank Linkage Programme, and the MUDRA scheme also provides refinancing for micro-loans under this model.