MYRADA & NABARD ( National Bank for Agriculture and Rural Development) work together on linking sAg's and credit; conducted several studies relating to transaction costs of various models of credit delivery in the rural context.

NABARD gives an R & D grant of Rupees one million to MYRADA to pilot the sAg concept of Banking with the Poor

RBI announces formal recognition of "Group" as lendable entity

NABARD issues guidelines to Banking industry to view sAg as a strategy for Banking with the Poor

MYRADA continues to formalize sAg / Credit activities, and linking program with the formal Banking System - Particularly with the Regional Rural Banks.

Idea for Sanghamithra as a Financial Institution for sAg linkage originated. (because of the inability - unwillingness (? ) - of the formal Banking System to reach out adequately to the Poor for somewhat valid and not-so-valid reasons). It was incorporated on February 15, 1995 as a Sec 25 Company, with liability of its Members limited by guarantee.

The new entity could not be operationalised owing to its desire to comply with all the statutory and regulatory provisions governing the operations of such non- banking financial entities before commencing its formal operations, towards which purpose it continued to do detailed and diligent preparatory work

Sanghamithra signs an MoU with Canadian International Development Agency (CIDA)/ Developpement International Desjardins(DID) (the programme implementing & monitoring agency for CIDA) for funding its rural initiative with an initial contribution of CAD one million.

RBI announces a new policy initiative exempting those companies

from having to get licensed under Sec 45 of the Reserve Bank of India Act.

Sanghamithra is operationlised and the first loan of Rs. 10,000 given to an sAg in Chitradurga District in the State of Karnataka.

Ms Rohini Nilekani, a philanthropic business woman of Bangalore, funds the Urban Programme unit with a grant for working exclusively with the urban poor - particularly in the slum areas in the Bangalore City Agglomeration Area.

The first loan cheque is handed over to an urban sAg sponsored by Association for Promoting Social Action (APSA) - a partner SHPI, ( Self Help Groups Promoting Institution) in a Bangalore slum.