impact of shgs: a study of pedo’s intervention in...

Impact of SHGs: A Study of PEDO’s Intervention in Microfinance and Livelihoods Under Sakh-se-Vikas Initiative January 2007-March 2011

For

CmF/PEDO/SRTT

March – September 2011

G Muralidhar Chief Mentor, Akshara

www.aksharakriti.org

Impact of SHGs/Microfinance and Livelihoods Phase 3/Growth Stage/PEDO/Sakh-se-Vikas/SRTT Support

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Acknowledgment

We are thankful to PEDO & CmF and its management for providing us this opportunity to assess the

microfinance initiatives and the impact on members and their families under Sakh- Se- Vikas funded and supported by SRTT. This study has given us an opportunity to explore and find out visible and not-so-visible insights of the microfinance program.

The study team interacted with PEDO staff and conducted the impact assessment through a sample survey of SHGs, their members, Clusters, Federations and their leaders during April-July, 2011. This could not have been possible but with the support from the member families, community resource

persons, PEDO staff in Dungarpur and other stakeholders. We are thankful to all of them. Specially, our thanks are due to –

The senior staff of CmF and PEDO for introducing, facilitating and cooperating with us in the

conduct of the entire study, and for interacting and discussing the processes, observations and conclusions.

The staff at PEDO, for facilitating and supporting the entire effort in general and the

fieldwork and its logistics. They were with us patiently despite our not-so-convenient timings and long time stretches.

The members, families and their SHGs, and local leadership for their extended wholehearted

participation and cooperation in letting us know them and their situation in depth through a variety of instruments and exercises. They guided us to go deeper in validating the observations and responses.

Our families. They endured us during the fieldwork in peak hot summer (and its fall-outs) and later in the Study.

This study report is truly theirs.

G Muralidhar

For the Team*

*The Team includes Anukriti, Karthik, Laxman, Laxmi, Neeraj, Nilendu, Sai, Srinivas,


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Contents

Acronyms .......................................................................................................................................... 4

Executive Summary .......................................................................................................................... 5

Chapter I: Introduction ..................................................................................................................... 8

Chapter II: The Institutional Architecture ....................................................................................... 14

Chapter III: The Study ..................................................................................................................... 20

Chapter IV: The Impact ................................................................................................................... 27

Socio-economic Impact................................................................................................................ 27

Comparison with Baseline ........................................................................................................... 33

Institutional Performance ............................................................................................................ 36

Chapter V: In Essence...................................................................................................................... 45

Conclusions ................................................................................................................................. 45

Way Forward ............................................................................................................................... 50

Annexures

Annexure 1: 25 Case Studies ........................................................................................................... 54

Annexure 2: Fieldwork Associates ................................................................................................. 66

Annexure 3: SHG Member Questionnaire ....................................................................................... 67


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Acronyms

ALPL, Akshara Livelihoods Pvt. Ltd

Avg, Average BPL, Below Poverty Line CmF, Center For Microfinance DRDA, District Rural Development Agency EC, Executive Committee FGD, Focused Group Discussion

FR, Federation representative HO, Head Office HRD, Human Resource Development ITC, Indian Tobaco Company MIS, Management Information Sysytem NGOs, Non Governmental Organizations

MGNREGS, Mahatma Gandhi National Rural Employment Garuntee Schemes NRM, Natural Resource Management OBC, Other backward Class PEDO, People's Education and Development Organization PMGSY, Pradhan Mantri Gram Sadak Yojana

RGB, Representative Governing Body ROI, rate Of Interest SC, Schedule Cast SHG, Self-help Group SMS, Short Messaging Service SRTT, Sir Ratan Tata Trust

ST, Schedule Tribe TV, Television


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Executive Summary People’s Education and Development Organization (PEDO), initiated in 1980, works in Dungarpur district of Rajasthan with socially backward (Schedule Tribe & Schedule Caste) and economically deprived (Below Poverty Line and Antyodaya) sections of the community. Its initiatives are primarily in areas of women's empowerment through microfinance; environmental improvements through natural resource management; promotion of primary education; and strengthening Panchayati Raj Institutions. Recently it began its operations in Banswara too in a small way.

In Dungarpur, PEDO works with 31875 women in 1760 SHGs, 79 Clusters and 12 Federations, spread over 515 villages and 4 blocks. As on 31 March 2011, these SHGs have total savings of more than Rs.10 Crore and have disbursed loans exceeding Rs.56 Crore.

PEDO’s microfinance work began in 1988 with the first Mahila Mandal formed in October 1988. Thus, the current (robust 3-tier SHG-Cluster-Federation institutional architecture) is a result of more than 20 years of hard work and intense efforts under Sakhi Program initially and later under Sakh-se-Vikas Program. These institutions (SHGs, Clusters and Federations), apart from normal savings and loaning activities, have also engaged in resolving the personal disputes of a member, promoting entrepreneurship at individual level and promoting collective marketing of dairy and turmeric.

Support from Sir Ratan Tata Trust was flowing to PEDO in this growth stage, during 2000-2011 in three phases. While the first phase was direct, subsequent phases are part of the Sakh-se-Vikas initiative. CmF supports the initiative as the nodal agency for providing technical support and monitoring. The third phase has just ended in March 2011. In this context, at the instance of CmF, this assessment of impact of ‘Women’s Federations of microfinance’ [phase 3 of growth stage, implemented by PEDO] on women and their institutions has been taken up.

As part of the study, 481 members of 28 SHGs in 17 Clusters and 7 Federations in Dungarpur have responded through structured questionnaire. The study also interacted with leaders, staff of the Federations and PEDO program staff, apart from capturing the impact through individual case studies. Baseline 2008 (by PEDO), among other things, has been a reference for assessing the impact.

Profiles of Members and Institutions: 33% of the members joined SHGs during the period 2004-07 while 44% joined after 2007. 91% of them belong to ST while 81% of them are from BPL category. 41% of them are getting work for less than 100 days in a year only. Their main occupations are agriculture, livestock, wage labour, MGNREGS, migrant labour, petty business, artisan related activities and non-farm livelihoods. Almost all the families have multiple livelihoods for living.

Impact: Savings per member is Rs.83 per month on an average. Cumulative average saving of a member with SHG is Rs.3596. Average amount borrowed by a member is Rs.18806 (more than 5 times the amount saved). 76% and 65% have taken loan from SHGs once and twice (as against baseline of 49% and 5%). As the members take subsequent loans, loan size is high and the loans are used for productive activities like, buying of asset, livestock, setting-up a shop, non-farm livelihoods and taking-up artisan related activities. Average annual income has gone up from Rs.29068 (earlier 2007) to Rs.63066 per annum (now 2011). This is mainly contributed by proportionately high increase in income from livestock, artisan activities, and MGNREGS. Average annual expenditure has increased by 110% from Rs.22750 to Rs.47672. Food expenditure has come down from earlier 51% to 41% now. Health and education expenditures have increased marginally but the entertainment expenditure has increased manifold. Investment in assets is high (from 1% to 7% of the total).

Families with Pucca or Semi-Pucca houses have increased from 9% to 18%. More families are now possessing separate kitchen, toilet, bathroom and cattle shed. 58% of the families are using electricity as against 22% earlier. Average holding of livestock has almost doubled from 2 animals to 4 animals per family. Their average irrigated land has increased from 0.5 bigha (0.2 acre) in baseline to 1.0 acre now. Thus, families have fortified their asset base.

More families are using cycle, motor-cycle and bullock cart, indicating their increased mobility. They are now able to use modes of transportation like, truck, auto, goods van etc. More families are using radio,


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TV, cell phone and computer, thus showing their improved access to means of communication. Thus, improved connectivity and access to outside world has improved.

More families are aware of and able to approach public facilities and institutions at village, block and higher levels. Their interaction in Gram Sabha, Market etc., is more pronounced. However, their influence/control on all these institutions has improved but in a limited way.

Vis-à-vis baseline 2008, the impact is visible. The loan utilization towards agriculture and livestock has increased while towards housing repairs and other activities (marriage and death rituals) have come down. Access to local level and block/district level institutions has improved. Their access to means of conveyance (cycle, motor cycle and bullock-cart), means of communication (ratio, TV, cell phone and computer) and modes of transportation (truck, tractor, auto and goods van etc) is superior. More members now possess better quality house, kitchen, toilet, bathroom and cattle shed.

Perceptions: 89% members consider SHGs to be a safe place for saving. More than 70% members are happy with the loaning and increased repayment capacity. Members highlight the reduction of interest rates in the area. More than 70% members have improved confidence, identity, mobility, solidarity, independence in decision making and control over resources. They are aware of membership fee and loan processing fee. They need more activities in livelihoods and business development. They also need more orientation to activities that happen beyond the level of SHGs.

There seems to be a high awareness among the SHG leaders for SHG and Cluster level activities like saving, loaning, SHG functioning, Cluster and book-keeping activities. However, activities like conflict resolution, bank linkages, emergency loans, planning & budgeting, livelihood activities are having medium response even among the SHG leaders. All the Federation leaders are satisfied with or show awareness about various fees and service charges, audit, planning & budgeting, etc., apart from savings, credit and other related activities.

Like members, leaders too wish to get into livelihoods related activities. The leaders are also would like to have/provide more training and exposure for members, leaders and staff. Recovery of loans is an issue for some of them. Clusters would like to make SHGs more self-dependent with conducive environment for SHGs, reduce interest rates and improve quality of bookkeeping. Federation leaders want their Federations to get registered soon and become fully self-managed.

According to members, the key impacts include their increased (cumulative) savings, followed by loan availability at less interest, increase in confidence and personal image, and freedom from moneylender. Most of the members feel that high interest rates would prevail or comeback if there has been no SHG. However, they are confident to resist SHG’s closure and run it on their own.

According to leaders, the key benefits of Clusters and Federations include information on government schemes and best practices of other SHGs, bank linkages, transparency and awareness about SHG functioning and linkages with livelihoods opportunities. Their challenges include initial distrust in the institution of SHG and negative response from some people, loan defaults and limited knowledge in maintaining records. Their suggestions include - exposure and trainings, reduction in rate of interest, increase savings, taking more loans from increased savings and livelihoods activities.

According to the staff, they are facing problem due to lack of awareness, illiteracy of members, interference of other NGOs, changing situation and defaulting members in repaying. Their suggestions include awareness campaigns; transferring program ownership to the community completely; developing local level volunteers and facilitators to support the institutions; and building mechanisms for ensuring members not to borrow more than required/the ability to repay.

Case studies bring out that these institutions have led to increased savings; higher and timely loan; promotion of livelihood activities; granting of loans for buying assets; increase in income; capital formation; reduction in migration and vulnerability; more involvement of women in decision making process; increase in solidarity in women; helping women in resolving their conflicts; and intervention in health and girl education. Personal disputes and conflicts have forced members to quit the groups, in some cases.


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Costs: All the 12 Federations together have incurred Rs.280 per member (or Rs.5080 per SHG) on an average, out of which the maximum expenses (71%) are incurred on honorariums. On an average, Rs.198 per member goes towards honorarium. These expenses amount to 12.1% of total loans granted from own funds of SHGs (Rs.7.37 Crore) during 2010-11. These federations have received Rs.79.6 lakh through membership fee et al and interest spread service charges. Net surplus, therefore, is Rs.13.8 lakh (or 1.7% of the loans). Further, as on today only three federations are running in deficit (Rs.2.13 lakh/federation) and the remaining nine are having surplus (Rs.2.25 lakh/federation). This deficit of the these federations needs to be covered for achieving self-reliance through increase the interest rates and spreads; surpluses from collective livelihoods and business activities; and increase the number of SHGs/SHG members serviced by them significantly.

Currently its outreach exceeds 31000 women in 500+ villages. Overall, the intervention has significantly impacted the members in terms of increased savings, increased access to credit, reduced interest rates, increased resource and asset base, increased access to facilities and institutions, increased awareness, knowledge, skills and capacities, and reduced migration to an extent. With changed mindset, improved health seeking behavior, increased stress on girl child education and improved women status/identity/recognition and decision-making, there are significant changes in their lives and livelihoods. They are now better equipped to handle/face the changing situations and tackle the external world including market(s).

Way Forward: PEDO is at a juncture where it can reflect on the way forward afresh. The elements of the way forward are visible. A shared visioning has to establish this way forward. These elements include –

Organizing as many as poor as possible and quickly as possible Facilitating Federations to come together as the fourth tier community institution at the district level. There is a need to increase savings by members, through regular savings, special savings and various

other savings products. Also, loan products need to be expanded. Federations may also source bulk loans for onward lending to SHGs.

However, there is scope to initiate and universalize insurance, health and other quality of life support activities at the scale of the fourth tier (district federation). o Most significant need articulated is to support/take up livelihoods and business activities at

individual and collective level, beyond the current level of individual activities. A comprehensive livelihoods framework applicable locally needs to be developed. This would include long-term significant livelihoods support in a comprehensive manner to members; collective purchases, processing and marketing; simultaneous loans /credit limit to members; farming system approach (that includes sustainable agriculture, dairy and livestock, and Non-pesticide Management, sustainable NTFP harvesting practices etc.); activity-based groups/collectives; producers’ company/collective at the district level for catering to members’ multiple needs, products and services; revolving funds/seed capital to supplement members’ funds to leverage bank linkages; and skill mapping, training and nurturing for job placement, self-employment and enterprise development.

There is a need to find ways to work with large scale programs like NRLM, MGNREGS, Mega watersheds, employment generation and entrepreneurship development working/likely to work soon in Dungarpur.

There is a need to offer capacities to the staff and leaders in livelihoods, business and collective action activities, apart from self-management and institution management.

Thus, this way forward is an intense and long-term effort for the coming 6-9 years. This would mean cost requirement of Rs.5000/member from donors and a similar amount from the community and other stakeholders like NRLM/MGNREGS.

Thus, the robust microfinance institutional architecture so emerged in Dungarpur needs to build further on this foundation and transform itself to get hooked on to a comprehensive livelihoods agenda, along with savings, credit, insurance, health and education.


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Chapter I: Introduction

Jan Shiksha Evam Vikas Sangathan (JSVS a.k.a People’s Education and Development Organization - PEDO) is a development support organization which started functioning in the year 1980. Initially,

PEDO started functioning as a field branch of Social Work and Research Center, Tilonia. Later, in the year 1986, it established itself as an independent agency. Its vision is to “build self-reliant communities with a value-based development orientation as a basis for sustainable livelihoods”.

PEDO’s development initiatives are primarily focused in areas of women's empowerment through microfinance; environmental improvements through natural resource management; promotion of primary education; and strengthening Panchayati Raj Institutions. It has been one of the key features of PEDO’s program strategy to work with tribal community and therefore, it has mainly focused its efforts in the areas having higher tribal population. It is working in the tribal belt of southern Rajasthan, in Dungarpur district1.

Dungarpur

Dungarpur is one of the smallest backward districts in Rajasthan (south-eastern part, bordering Gujarat and very near to Madhya Pradesh border).

Demography

Dungarpur covers an area of 3780 sq. kms. The total population is around 11 lakh. Dungarpur consists of five blocks viz., Dungarpur, Bichhiwara, Sagwara,

Simalwara and Aspur [see map – Figure 1]. All the blocks are predominantly inhabited by tribal communities - mainly Bhils, Damors and Garasias. Other non-tribal communities are Patels, Rajputs and

Brahmins. Almost 93% of the population is rural, of which 70% is tribal. The literacy level is as low as 24.5% for rural areas with female literacy rate standing at meager 12.4%. The tribal population lives mostly in hilly and undulating regions spread over widely scattered villages.

Economy

Dungarpur is drought prone and economically backward. Most farmers practice subsistence

agriculture. The traditional economic base of a tribal household is a combination of agriculture and cattle breeding. They cultivate sorghum, rice and wheat in their land. Major part of the produce goes for household consumption while the residual part is sold in the market. Average holding of cattle and land in tribal areas is high while compared with the rest of the state. Yet, over the years the productivity of land and livestock has got eroded due to factors like, land fragmentation, high dependence on rain, sustained drought and environmental degradation. Hence, the agricultural produce sometimes barely supports the family for half a year.

1 Apart from Dungarpur, PEDO has recently started its activities in Kushalgarh block of Banswara district. Here, it has promoted 25 SHGs with a membership base of 406 women.

Figure 1 Dungarpur District Map


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Above Poverty

Line 23%

Below Poverty

Line 44%

Antyodaya 33%

ST82%

SC2%

OBC6%

General10%

Survival in this kind of socio-economic set-up assumes the highest priority for them. Their survival revolves around the credit accessed from local Sahaukars. Repayment is dependent on the survival of the crops and just one year of drought is enough to push them back into a vicious cycle of debt.

Most of them are hence dependent on wage labor. Seasonal migration is common with most men going to Gujarat to work as agricultural or industrial laborers.

Coverage and Outreach

PEDO is working in 4 blocks of Dungarpur district viz., Simalwara, Bicchiwara, Aspur and Dungarpur. It has formed 1760 SHGs with a membership base of close to 32000 women. These SHGs have been federated into 12 Federations. The table below gives the details of its operational area.

Table 1: Geographical Coverage of PEDO's Microfinance Program

District Name of the Block Name of the SHG

Federations Total No of

SHGs Total No. of Members

Dungarpur

Bichhiwara Mada, Bichhiwara, Ganji, Dewel (4)

639 11839

Aspur Sabala, Punjipur (2) 262 4819

Simalwara Jasela, Dhambola, Kuna, Mandali, Peeth (5)

743 13108

Dungarpur Jhonthari (1) 116 2055

Total 4 Blocks 12 Federations 1760 31875

Similarly, Figure 2 shows classification of these 31,875 SHG members based on their caste. It is clear from the diagram that as high as 82% of these members belong to ST; 2% are SCs and 6% and 10% come

from OBC and general categories, respectively. In short, 90% of the household covered by PEDO are from socially backward section of the society.

Figure 3 Composition of Members based on Economic Status

Figure 3 shows classification of the above 31,875 members based on their economic status. A substantial chunk of families with

whom it is working belongs to the poorest of the poor and disadvantaged section of the community. 23% and 44% of the families, with whom it is working, are from Antyodaya and Below Poverty Line (BPL) categories, respectively. Majority of the 23% families from APL category are also APL only marginally i.e. they are just above the poverty line.

Figure 2: Member’s Composition based on Caste


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SAKHI-I & SAKHI-II

Sakhi Program was implemented during the period 1988-2000. Sakhi-I was primarily a poverty alleviation program, which aimed at enhancing livelihood options through involvement of women in NRM activities. It also stipulated to empower the women by mobilizing them in the form of SHGs and providing them access to credit. It was supported by Inter Cooperation. Sakhi-II aimed at building a large network of SHGs into self-managed and independent financial institutions of women, which will then act as change agents for playing a proactive role in the development of the area. The emphasis was given on making the institutions socially sustainable (i.e. community to manage the institutions on their own after withdrawal of PEDO) and financial viable (able to meet the running costs out of the profits earned).

PEDO’s Outreach

PEDO is actively involved in developing the poor communities, with community-managed (women) microfinance activities being at the center-stage of its programs. PEDO’s operations are spread out in 515 villages (180 Gram Panchayats) across 4 Blocks in the District. It is currently working with 31875 members in 1760 SHGs, 79 Clusters and 12 Federations.

As on 31 March 2011, these SHGs are having total savings of Rs.10.27 Crore. 24891 members (78%) have taken the loans from the SHGs. Their loans outstanding to members are to the tune of Rs.14.78 Crore, which are partly funded by own savings (Rs.8.84 Crore) and partly by linkages with banks (Rs.5.93 Crore). 1449 SHGs out of the total of 1760 SHGs have been linked with the banks. It is only

by rotating members’ own funds and by establishing linkages with banks that they have been able to reach the enormous figure of around Rs.56 Crore in terms of total loans disbursed to the members. The outreach of PEDO in summary -

Table 2 PEDO's Outreach at a Glance

S. No. Particulars Figures till March

2011 1 No. of Development Blocks covered 4 2 No. of Gram Panchayats

No. of Revenue Villages 180 497

3 No. of Federations 12 4 No. of Clusters 79 5 No. of Women Self-help Groups 1760 6 No. of Members 31875 7 No. of Borrowers 24891 8 No. of groups linked with the banks 1449 9 Total savings generated, Rs.Crore 10.27

10 Loan Outstanding as on date, Rs.Crore 14.78 11 Average loan outstanding, Rs. 5,937

Growth Stages

PEDO’s history has some marked phases or stages of development as it went ahead to work with the local communities in its efforts to improve the economic and social situation in Dungarpur district. But right from the start, its methodology and strategy carried the seeds of the future program to be started later on.

PEDO’s more than 30 years of work can mainly be divided in 3 different stages - First stage during 1980-87 is the Foundational stage or Pre-microfinance stage, followed by second or intermediate stage of Early Microfinance, during 1988-99 and third stage of Growth or Consolidation and Expansion during 2000-2011.


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Intermediate/early microfinance stage (1988-2000) began with the starting of the first Mahila Mandal (women group at village level) in Dedko-ka-Wela, followed by forming new women SHGs (initially as Mahila Mandal, later as SHGs) and enabling them to do saving and credit activities. The

focus of the next stage/third stage (2000-2011), supported by SRTT, has been growth - consolidation and expansion of the program to reach out to 30,000+ poor women. The progression (key activities/ achievements) over the years across the stages can be seen in Table 3 (below).

Table 3: PEDO Journey at a Glance Year (s) Activities/Achievements Stage

1980-1985

Founded in the year 1980 by Devilal Vyas; PEDO worked on local issues; activities included women’s income generation program, educational program for children and land & water based programs etc.

Foundation Stage

(1980-1987) 1986-1987

Rajasthan was hit with a serious drought; PEDO took up need based activities; Common land plantations were taken up; targeted the eradication of Guinea worm

1988-1989

Afforestation program was taken up; women’s training program was conducted; it established the need for microfinance activities; first Mahila Mandal was started; it was named as Sakhi Program; completely eradicated Guinea worm from the region;

Intermediate Stage

(1988-2000)

1990-2000

Taking up of microfinance activities; it was restructured and SHG was introduced; Sakhi-I & Sakhi- II were started; Inter Cooperation support for NRM in Sakhi-I (1994-97); PAHAL project (to ensure sustainable use of land and water resources) was taken up; linkages with banks were made; the program drew support from RMK; First Federation at Bichchiwara came up in 1996; Sakhi-II started in 1998 with IC support for social sustainability and financial viability.

2000-2003 1st phase of support from SRTT; 4 Federations in Bichhiwara, 2 in Simalwara and 1 in Aspur became financially viable and sustainable; Totally 12 Federations came up.

Growth Stage (2000-2011)

2003-2006 Program was restructured as SAKH-SE-VIKAS; 2nd phase of support from SRTT;

2007-2011 3rd phase of support from SRTT (ended on March 2011); Computerized financial accounting including mobile-based transactions in place.

Expansion Stage (2000-2011) [Support from SRTT]

The ‘Growth Stage’ of the program is characterized by continuous support from SRTT (in three phases) for a period of more than 12 years beginning from the year 1999.

First phase of the support came for the period 1999-2002. Formation of Federations started during this period. Having witnessed the formation and successful functioning of SHGs at village level, the logical progression was to federate them at higher level so as to leverage on collective strength and

share the resources for mutual benefit. This resulted in grouping 20 SHGs each in the form of a Cluster and 8 Clusters in the form of a Federation (also known as ‘circle’). The initial program was only in one block i.e. Bichhiwara but with the support from SRTT, two new blocks were covered under the program. Gradually the program was extended and seven Federations in three blocks were formed. Over the period, these Federations became financially self-sufficient. The operating and financing cost now is contributed by the groups.


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SAKH-SE-VIKAS

Sakh-Se-Vikas- ‘Development through Credit’ is the regional microfinance initiative of the Sir Ratan Tata Trust in Rajasthan. Under the aegis of this initiative, apart from PEDO, SRTT also supports other organizations. Sakh-se-Vikas mandates coming together of three set of organizations viz. SRTT, CmF and an implementing agency (PEDO, in our case) and seeks to synergize their resources and expertise. The initiative seeks to promote community-based microfinance and livelihoods programs through providing access to basic financial services of savings, timely and affordable credit and insurance as the first step. Building strong community owned, self-help based institutions is the core strategy of the initiative to ensure sustainability of these programs. As on Sept 30, 2010, the initiative reached out to approx. 70,000 households organized in 5,500 Self-Help Groups across 12 districts of Rajasthan.

Centre for micro Finance (CmF), Jaipur is the nodal agency for the initiative. On behalf of the Trust, CmF provides technical support required by partners in project implementation and facilitates conduct of baseline, impact assessment exercises, proposal preparation and appraisal etc.

To make the intervention more focused and structured, it became part of the SAKH-SE-VIKAS initiative in the year 2003. This embarked the second phase of support from SRTT as part of SAKH-SE-VIKAS. This phase continued till 2006.

The third phase of support, again as a part in SAKH-se-VIKAS, started in the year 2007 and continued till March, 2011. It aimed to achieve the following objectives:

Adding 20,000 women members in the microfinance net, through the formation of 1,000 new

groups [to take the total program to 40,000 members across 2,000 groups].

Increasing incomes of 8,000 members by Rs.10,000/year through undertaking various business development services. Another 7,000 members would be helped to increase their incomes by

Rs.3,500/year.

Providing support, and influencing the quality of other programs, including those of other NPOs, Government and banks through the setting up of a microfinance resource centre.

The three operational components of the project included -

Up-scaling existing groups and Federations in Simalwara and Aspur blocks, while leveraging support from other programs for other blocks of Dungarpur. Savings of Rs.6.13 Crore to be mobilized and to be used to generate loans of Rs.47.2 Crore from banks.

Developing community-based livelihood promotion reaching out to about 6,800 members to undertake on-farm improvements such as pigeon pea cultivation, spice and maize cultivation, and another 2,000 members to undertake off-farm / allied activities such as fishery, goat rearing and dairy. Expected increase in annual income was Rs.10,000.

Creating a microfinance resource centre, to design and conduct skill-building programs for

community leaders, besides developing training modules and resource material.

Other Interventions

Apart from its microfinance program, PEDO has engaged in few other activities. These include -

NRM based Activities

Land and water based programs were taken up which consisted of leveling of farm land, well deepening and community irrigation schemes. By 1985, 400 wells had been deepened and 400 acres


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of land leveled. Common land plantations were done (1985-1990) to develop common lands resources to fulfill community needs for fuel, fodder, small timber. Private land plantations (1989-90) were also taken up. Results were visible in the form of regenerated physical assets, and the

consequent economic benefits. Almost 500 hectares belonging to 1135 families were treated and 8.8 lakh saplings planted. Watershed Development under which, PEDO has covered ‘Saram’ watershed in Dungarpur District on the boundary of Rajashtan and Gujarat. The main objectives of the project are to develop irrigation and thereby agriculture. In all these activities, the key focus was on women.

Strengthening the Leadership of Women in Local Governance

The main focus of this project is to build the capacity of Panchayati Raj Institution and involve

community to develop participatory planning for poverty reduction. The stakeholders in the project were Planning Commission, State Panchayati Raj and Rural Development Department and Zilla Parishad at district level.

Health and Sanitation: Guinea Worm Eradication programs

This was one of the programs that had a major impact on PEDO’s development capability. In 1980, SIDA agreed to a project for the eradication of guinea worm in the area and this was later converted

into the pilot phase of SWACH, a broader program with government involvement. The program consisted of both preventive and curative components, covering more than 94 villages and was highly successful. As many as 468 hand pumps were installed and 156 step wells were sanitized with 23 new wells being dug.


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Chapter II: The Institutional Architecture

Microfinance program essentially mandates mobilizing the poor women and organizing them in the form of institutions. PEDO has been spearheading this entire process for more than three decades.

The program has led to formation of a robust and dynamic institutional structure, which has also grown on a massive scale. Now, the community is capable of taking charge of and executing the program on its own. Of course, roles and responsibilities for each level of the institutions have been laid down very clearly.

Institutional Architecture

The institutions promoted under microfinance program are having 3-tier structure. At the base, there is an SHG, comprising of 20 women members. In a village, there could be multiple SHGs. On an average, for every 15-20 SHGs, there is one Cluster and for every 7-8 Clusters or 160 SHGs, there is one Federation. All the three tier structures are currently informal. Soon, the Federations are getting ready to be registered as Societies/Trusts/Cooperatives. Currently in Dungarpur, 31875 women are in 1760 SHGs, across 79 Clusters and 12 Federations.


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Self-help Group

It is a primary group of 15-20 women. One village can have more than one group. Each group meets for a monthly meeting on a set date. Savings from each member are collected, pass book entries are made and loan requirements are discussed. The SHG elects its Adhakshya (President) and Koshadhyaksha (Treasurer). President convenes and manages the meeting; ensures the group discipline; and provides motivation and direction to the group. She also manages the financial

transactions along with the Treasurer. SHGs are divided into sub-groups of 5 members each with a Mukhiya (Head) as the head. Mukhiya can grant emergency loan to members without conducting the meeting of the SHG. Election of the leadership is mandatory at the SHG level after every two and a half year.

Members needs to submit loan application for availing loans, up to Rs.5000 SHG approves the amount in their group meetings, above Rs.5000 it needs the approval from Cluster loan/financial committee and above Rs.20,000, Federation approval is required.

All these activities are undertaken/recorded with the help of the bookkeeper who is hired by the group and paid on a per meeting basis (Rs.50) by them. Internal auditing, preparing accounts statements etc.,are facilitated by Federation staff and leaders. Peer audit is also practiced.

Cluster

It is a crucial link between the Federation and SHGs. 15-20 geographically contiguous SHGs come together to form a Cluster Organization (referred as Cluster). Presidents and Treasurers of the SHGs are the members of the representative general body of the Cluster, who in turn elect President and Secretary for the Cluster. Field representatives are responsible for coordinating the Cluster level activities while the group level activities are handled by the groups themselves. At Cluster level,

there are three (sub) committees viz., Finance & Credit Committee, Planning & Management Committee and Conflict Resolution Committee. These committees are assisted in their work by a full-time Field representative. Overall review and monitoring of the SHGs take place at the Cluster level. They also help SHGs in preparing their finance and livelihood plans. Proposals for linkages with banks are also prepared and discussed in these meeting. Cluster accounts are independently audited by external auditors.

The concept of Clustering helps in better administration as well as in fostering a feeling of unity and solidarity among group members. They can now discuss their individual problems and seek guidance from the Cluster leaders. Dissemination of information becomes easy as the field representatives now discuss new developments with the Clusters leaders and not individually with each group.

Federation

Federation (also referred as Circle) is the apex body in 3-tier structure. Its general body consists of all SHG members in its hold. Its Executive Committee is constituted by the Cluster Presidents/Secretaries. General body meets once in every 6 months and lays down policy for the entire Federation. Executive Committee is an implementing and administrative body for day-to-day

functions of the Federation. Federation has two full time staff viz., Federation Secretary (a.k.a. Coordinator) and Federation Accountant. Federation is responsible for overall monitoring and evaluation of the microfinance operations in its area. It also organizes trainings, workshops and seminars for capacity-building programs for the leaders and members. Field Secretary builds strategic linkages with financial institutions in the area.


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Cluster and Federation get their accounts audited externally by Chartered Accountants.

Revenue and Cost Sharing

The revenue and cost arrangements/mechanisms at different levels of the institutional hierarchy are important, particularly with reference to financial self-sufficiency.

These include -

1. All the expenses, whether incurred at SHG, Cluster and Federation level, are consolidated at the Federation level and also recorded in Federation’s books of accounts.

2. The sources of revenues for the Federation are as follows: a. Annual membership fee once in a year and loan processing fee (linked with the amount

of the loan). b. Interest received on the deposits kept with the banks. 40% of this interest goes to

Federations and remaining 60% is retained by SHGs, for its distribution amongst members in the form of dividends.

c. Interest on saving loan granted to members. 40% of this interest goes to Federations and remaining 60% is retained by SHGs, for its distribution amongst members in the

form of dividends. d. This 40% component, which goes to the Federations, is also known as service charge.

Federation-wise Loans and Savings

The table below gives details of loans granted by Federations during the year 2010-11 and also savings accumulated with them as on March 2011. 60% of total loans in terms of value and 55% in terms of numbers are granted for productive purpose. Total value of loans received by members is

Rs.7.37 Crore during the year 2010-11 and their built-up cumulative savings is Rs.10.27 Crore as on 31 March 2011.

Table 4 Loan and Savings Details of the Federations in Dungarpur district

Loans Granted during the year 2010-11

S. No. Circle/

Federation

Productive* Purpose

(Rs.)

No. of loans

Consumption# Related

(Rs.)

No. of loans

Total Loan (Rs.)

Cumulative Savings upto March 2011

(Rs.) 1 Mada 6,858,752 459 1,700,510 150 8,559,262 18,196,871 2 Bichhiwara 2,409,027 268 1,362,114 188 3,771,141 11,619,859 3 Ganji 5,610,000 604 4,755,300 543 10,365,300 12,850,066 4 Dewel 1,807,300 176 644,400 246 2,451,700 3,247,407 5 Sabala 2,096,000 271 2,545,300 331 4,641,300 11,957,476 6 Punjpur 1,317,500 216 2,057,500 294 3,375,000 3,542,913 7 Jasela 4,119,967 440 2,421,578 275 6,541,545 6,309,833 8 Dhambola 6,436,100 834 3,997,750 578 10,433,850 10,045,279 9 Kuan 3,260,100 353 2,753,000 296 6,013,100 8,351,238

10 Mandali 5,354,300 503 650,300 90 6,004,600 3,816,211 11 Peeth 3,091,500 390 2,070,400 259 5,161,900 4,737,478 12 Jhonthari 2,031,500 412 4,387,460 935 6,418,960 8,050,690

Grand Total 44,392,046 4926 29,345,612 4185 73,737,658 102,725,321 % 60% 55% 40% 45% 100%

* Productive loans are meant for agriculture, irrigation, animal husbandry and business. # Consumption loans are meant for health, housing, ornaments, meeting old debts and others.


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Salient Features

The program and the people’s institutions have a participatory system of governance and operations and it is flexible and responsive to the needs of the poor women and adjusts itself based on changing external context.

Some of the key aspects of the institutions and systems evolved include -

Participation of the Community

Institutions seek to ensure broad-based participation of the members. Operations are started in a

village only when more than 50% of the households agree to organize themselves in the form of SHGs. The practice of rotating the venue of SHG meeting at each of the member’s place is unique in itself.

Governance Structure

In order to ensure the voices and concerns of the SHG members are heard, considered and responded to, the 3-tier structure is a nested institutional structure wherein all the SHG members

constitute general body of SHG, of Cluster and of Federation. SHG members meet every month in their SHGs, and SHG members in Cluster and Federation meet once in six months. Executive Committees and Office-bearers (President, Secretary and/or Treasurer) implement the policy/broad decisions taken by the General bodies.

Flexible Processes

The method of granting emergency loan by Mukhias (heads) to members, even without convening

the SHG meeting or granting productive loans to members for larger duration with flexible terms and conditions are some of the unique way of keeping the members away from the clutches of the moneylender.

Group Solidarity

Regular attendance has always been treated as a key requirement for the membership as many decisions regarding credit and savings are taken at these meetings. If attendance drops below 70%,

the group is considered inactive and group leaders are expected to motivate the members before the group is considered active again. Efforts at strengthening group solidarity and commitment of members can be seen in the level of attendance of the meetings. On an average 95% of the members attend group meeting.

Foundation Day

Foundation Day celebration helps in communicating vision and mission to group members and to

the village community. It also showcases the achievements and activities of the SHGs to them. One of the objectives of the foundation day is to get recognition for the SHGs from local leadership structures like the Panchayat and other traditional structures. It helps in promoting a culture of transparency at the village level.

On-the-job Support to Leadership

Federation supports Cluster leaders before and after a Cluster meeting through a pre and post meeting concept.


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Computerization

Entire accounting system from the level of SHGs upwards is computerized. All the transactions are fed into the system through mobiles online. The members receive receipts on the spot. Cash Book and ledgers are updated on the system collected later at Federation Office. However, SHGs maintains the minutes book manually.

People’s Institutions as Resource Institutions

The lessons learnt while developing the SHGs and their Clusters and Federations are being documented and shared with other community and support organizations. They also offer exposure to the community and staff so that they pick up the best practices and the logic of practices.

Support from PEDO

PEDO extends supports the people’s institutions in a variety of ways based on the need through its 4 Field Centers and its MF unit at Head Office. Each Field Center is headed by a Field Coordinator and

is supported by a Field accountant. The Field Coordinators are responsible for managing and conducting all matters at the Cluster and Federation level, supervising and motivating the Field Representatives in their group activity and establishing/providing financial and other linkages. They also have overall responsibility for all financial transactions including loan verification.

Other Institutional Interventions

The institutions are going beyond their normal savings and credit activities. These include -

Conflict Resolution

The institutions not only help the members in pooling their savings or lending them but goes a step beyond in identifying and solving their personal problems, that are preventing them from participating effectively in the activities of SHGs. There is a mechanism of conflict resolution committee at Cluster level whereby a woman is helped to come out of the exploitation of her husband or family members or get rid of any other social problem.

Promoting Entrepreneurship

The SHGs have been instrumental in supporting various entrepreneurial activities of the members. They have granted loan for various productive purposes like, purchase of land and livestock, installing a flour mill, setting-up of Kirana shops or doing some small business activity. The same gets substantiated with the help of 25 individual case-studies documented during the course of this study.

Dairy Activities

SHGs have been also linked the members to livelihood activities, like in case of dairy. In Bichhiwara block dairy activities were promoted. SHG members began supplying milk to the Mewar dairy. However this initiative could not be sustained due to the high transportation costs involved. As an alternative, Sanbhar Dairy of Gujarat was approached. 50 families belonging to 8 villages have been

linked to this dairy. Currently these villages supply 180-200 litres of milk daily to the dairy. To manage dairy activities, a committee of seven members was formed. These members represented different villages. Currently, milk worth Rs.8-10 lakhs is annually supplied to the dairy. In the last two years, the beneficiaries have got bonus amount of Rs.1.29 and 2.57 lakh respectively. Milk price per


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liter has increased from Rs.23 to Rs.25. The committee earns about Rs.250 per day from non-dairy activities and bears the cost of transportation, stationery, and other labor charges.

Turmeric Trading & Processing

Interventions through SHGs were done to promote and scale up production of various commodities in the area in much more organized way. Turmeric is one of the items. Dungarpur is known for good turmeric production, where members have made additional profits from the support for trading and processing. In 2010-11, turmeric production was taken up by members. 334 families belonging to 34 villages were linked with market. 5934 kilograms of turmeric rhizomes were planted in an area of 3.25 hectares whereas total production stood at 32,592 kilograms. Similarly, they have also tried

their hands on processing of turmeric and grinding it into powder. In 2010-11, 620 kilogram of turmeric powder was made.

Kirana Shops

In 2009, under the Sunehra Kal mission of ITC, members were provided ITC commodities for their Kirana shops. 600 members were identified who would stock ITC products in their shops. Stock is otherwise purchased from distributors. Direct linkage with ITC eliminates middle men hence maximizing the profits realized by the members.

Refer to Annexure 1 for detailed 25 (individual) case studies.


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Chapter III: The Study

The current phase of SRTT’s support to PEDO, which started in January 2007 has ended in March 2011. In this context, study/assessment of the impact of the microfinance program on SHG members

and their families has been commissioned. At the instance of CmF, G Muralidhar, Chief Mentor, Akshara Livelihoods Pvt. Ltd (ALPL) has undertaken the study in partnership with PEDO and CmF.

Objectives

The study has been undertaken to accomplish the following objectives:

To analyze the social and economic impact of PEDO’s intervention in microfinance and

livelihoods;

To analyze the sustainability of community-based institutions and their preparedness to evolve as community owned and managed development institutions who can sustain the momentum

for development initiatives within the community;

To identify capacity and management gaps (if any) of the institutions in performing such roles in future.

Scope

The study aims at achieving the above objectives by doing the following:

1. Desk review of proposal, progress reports, MIS reports and other background documents and field visits.

2. Undertaking a detailed impact assessment study to analyze the social and economic impact

created by PEDO’s intervention and capture tangible changes in ‘Quality of Life’ of member families.

Study Schedule

Start Date End Date Tasks

March 28 April 4 Desk review of documents, proposal and review reports; Early draft data collection tools including questionnaire for SHG members and checklists for interaction

April 5 April 8 Field visit to program location; interaction with program team at PEDO; Improving study design, data collection tools etc.; training of enumerators

April 9 April 12 Onsite support to enumerators during initial data collection

April 13 July 05 Data collection by enumerators and Data Entry; Profiling/Case Studies - Federations, Clusters, SHGs, Leaders, staff, interventions; Translation into English Follow-up on fieldwork and working on data interpretation parameters/methods and report template

June 1 July 23 Data analysis and interpretation, Report writing

September 2 Finalization based on feedback

Methodology

Field Data and Fieldwork

Baseline survey (2008, conducted by PEDO) in Aspur and Simalwara blocks, has also served as

one of the references for seeing changes in the reality of the poor in 2011 vs 2008/2007.


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Secondary data from the sources viz., process documentation, Annual reports, progress reports, latest MIS etc., was reviewed, research instruments/tools i.e., structured questionnaire for the

SHG members and checklists (for capturing perceptions and profiling institutions, leaders and staff; discussions with federation leaders and staff; and case studies etc.,) were developed.

The study team was exposed to various layers of institutional architecture on the ground, their leaders, staff, activities, processes, systems, accounting and documentation, and the support flowing from PEDO.

A workshop of all the Federation leaders & staff and PEDO program staff (and resource persons from CmF and ALPL) discussed the instruments and improved them. It has also finalized the sampling plan and sample has been drawn.

The workshop has also drawn the matrix of case studies of impact on a scale across the 12

federations. From these, it could draw out 25 Individual case studies for study.

All these tools (individual questionnaire, profiles of the SHGs, Clusters and Federations, checklists for interviews of community leaders and staff, checklists of intervention case studies and checklists for FGDs) were piloted in the field at Dungarpur and fine-tuned before going

ahead with the full-fledged fieldwork and collection of qualitative and quantitative data from the field.

A template for data entry in the computer system was developed. Training was imparted to the identified PEDO staff for entering the data.

PEDO has identified a team of investigators from PEDO and Federation staff and they have been trained administering the questionnaire and profiling. See details of investigators in Annexure 3.

A plan, based on the piloting, has been developed for data collection, response checking and

verification, data entry, translations etc.

Data collected from the member questionnaire was entered by PEDO staff and sent across to the study team for further consolidation, analysis and interpretation. The profiled data, data from interviews and discussions with institutional leaders and staff and case studies were translated and digitized by CmF and was sent across to the study team.

Finally, the data, so received from PEDO and CmF, was consolidated, analyzed and interpreted to arrive at the results of the study.

Sampling Plan

A sample of 7 Federations [Oldest Federation, Mada; 2 Federations formed during 2000-06 - Dhambola, and Jhonthari; all 4 Federations formed during 2007-11 – Peeth, Mandali, Jasela and Punjpur] out of the total 12 Federations was chosen during the course of the workshop. 4 SHGs were chosen from each Federation to represent old, new, strong and weak categories of SHGs.

For this purpose, first, all the SHGs covered by a particular Federation were listed and arranged in the order of their age. From this list, SHGs below 1 year age were removed. One oldest SHG and one youngest SHG were then picked up. Then, the remaining SHGs were arranged in the order of their ‘strength’. One strongest SHG and one weakest SHG [based on the assessment indicated by PEDO] were chosen from this list. Thus, 4 SHGs were selected from each Federation

i.e.28 from 7 Federations. Refer Table 6 for details of these SHGs in the next page.

The plan was to include all the available members from the total membership of 532 from these 28 SHGs in the sample. 481 (90% of the total membership) members could form part of the sample and were administered the questionnaire (for SHG member). See Final Questionnaire (for

SHG Member) at Annexure 2.


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Further, 2 leaders from each of the above 28 SHGs, totaling 56 SHG leaders, were profiled/interviewed. One leader from each of the 7 Federations and corresponding 17 Clusters

also constituted the sample for profiling/interviews.

One staff from each of the 7 Federations and all staff of PEDO microfinance program (9) formed part of the sample.

Details of the sample can be found in the table below.

Table 5 Details of the Sample Chosen for Study

S. No.

Component of the Sample

Sample Size

Remarks

1 No of Federations 7 Oldest 1; 2 from 2000-6 period; 4 new from 2007-11 2 No of SHGs 28 Four SHGs in each of the Federation under S.No.1 3 No of Cluster 17 Clusters, which are covering the SHGs in S. No. 2 4 SHG Members 481 All available members of the SHGs in S.No.2 5 SHG Leaders 56 Two Leaders in each of the SHGs in S. No. 2 6 Federation Staff 7 One staff from each of Federation in S.No.1 7 Federation Leaders 7 One leader from each of Federation in S.No.1 8 Cluster Leaders 17 One leader from each of Cluster in S.No.3 9 PEDO Staff 9 All staff related to microfinance

10 Case Studies 25 As selected in the workshop

Sample description

Sample included 481 members (of total 532 members) in 28 SHGs, 17 Clusters and 7 Federations.

Table 6 List of Blocks, Federations, Clusters and SHGs forming part of the Sample

Block Federation SHGs selected

for Sample O/N/W/S

Members Date of

Formation Corresponding

Cluster Bichhhiwara Mada Bortlad-1, Old 25 23/11/1998 Mada

Dungariphala, Weak 21 15/7/2004 Mada

Navaghara, Best 24 7/9/1997 Mada

Dhamlat New 20 6/2/2011 Mada

Simalwara

Dhambola Raotphala New 17 1/2/2011 Bodamali Gadibhadar, Old 20 03/05/2000 Dhuved

Kalika-II Weak 21 16/9/2000 Dhuved

Beliyaphala Best 20 21/7/2003 Dhambola Peeth Yadav Basti-I Weak 20 26/12/2008 Sarthuna

Tembaphala-I Old 22 18/6/2000 Purawara Dhuniphala Best 22 1/9/2003 Rajpur Dungaraphala New 13 14/2/2011 Jharani

Mandali Oudaphala-I, Old 20 30/5/2006 Jhalap

Sithal-Odhapala, New 13 19/2/2011 Jhalap

Kotawalphala, Weak 17 14/7/2007 Jhalap

Bharatpura Best 20 22/6/2007 Jhalap

Jasela Dendorphala Weak 14 25/08/2006 Chikhali

Makwadaphala Best 20 28/8/2007 Chikhali

Damorphala Old 20 4/10/2006 Godamedatiya Banjara Basti New 20 15/11/2010 Baba Ki Bar

Dungarpur

Jhonthari Talwadi-II, Weak 20 8/4/2008 Bhinda

Matabhucita Old 20 16/4/2008 Bhinda

Bhaislaphala-II, New 12 23/12/2010 Mal Choki

Matajiphala-II Best 20 30/8/2008 Mal Choki


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20-3544%

36-5044%

51-6511%

65 & Above1%

ST91%

SC4%

OBC5%

Above Poverty Line

19%

Below Poverty Line

71%

Antyodaya10%

Aspur Punjpur Dayamaphala Best 19 27/6/2007 Bodigama

Temberphala Weak 11 21/9/2007 Mal Choki Nanomaphala-II New 21 18/08/2010 Punjpur

Nanomaphala-I Old 20 20/7/2007 Punjpur

Profile of the Members

Table 7: Grouping of Members based on year of joining

Interestingly, 44% of the (sample) members are the ones who have joined SHGs during the period 2008-11. 33%

joined during the previous four years. Thus, the sample focuses on the SHGs formed mostly after 1999.

44% each fall in the age group of 20-35 and 36-50 i.e. 88% of the members are of below 50 years.

Almost 11% of the members are in the age group of 51-65 and only 1% of members are above 65 years.

91% of the members are tribal. Also, all the members falling in SC category and majority of the members from OBC category,

are the ones who have joined the SHGs during 2008-11.

71% and 10% of members belong to BPL and Antyodaya category respectively, while 19% of the members are above poverty line [Only 7% are above

poverty line as per Baseline 2008 in Aspur and Simalpur Blocks].

Period of Joining the SHG

No of Members % of Total

Up to 1999 37 8% 2000-2003 74 15% 2004-2007 157 33% 2008-2011 213 44%

Total 481 100%

Figure 5 Caste-wise Composition of the members

Figure 4: Age Profiling of Members

Figure 6 Members based on Economic Status


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Agriculture is largely rain-fed in the region and provides seasonal employment to the members. Therefore, a family is dependent on multiple activities to supplement their income from agriculture. Only 1% of the families in the sample are deriving their income exclusively from agriculture. Around

76% of the families are dependent on a combination of activities viz., agriculture, livestock and wage labour for earning their wherewithal. The remaining 23% are mainly earning their income from petty business, artisan, migration and non-farm livelihoods.

Table 8 Days of Work for the Member Families There are around 41% families, who

are getting less than 100 days of work during the year; 53% families are getting work for 100-250 days; and only 6% families are able to find work for more than 250 days in a year.

Profile of the SHG Leaders

The study involved interacting with 56 SHG leaders in order to understand their perception about the activities and benefits of the SHGs. The profiles of these leaders in brief -

Education background: 70% of the leaders are literate (those who can read, write and sign their name). Nearly 23% have gone through formal education with 2% of them have passed SSC. 7% of the leaders are illiterate.

Age-group: 91% of the leaders are below the age of 50 years. Of this, 29%, 40% and 32% belong to the age group of 20-30, 30-40 and 40-50 years.

Livelihood options: As per the leaders, the members are mostly involved in agriculture related

activities for earning their livelihood. About 86% of leaders consider agriculture and allied activities and 8% consider trade and home based enterprise as the primary occupation. Secondary livelihood options for them consist of labour (43%) under various categories like unskilled (20%), migrant (14%), MGNREGS (9%) followed by livestock (16%), regular employment (4%) and skilled employment (4%) etc.

Tenure: About their tenure in the leadership role, nearly 36% responded that they are in their

positions since the beginning. Similarly 19% have been leaders for more than 5 years (continuing for 3rd term as the elections are held every 2.5 years) while 17% have been leaders for 3-5 years. Remaining are leaders for less than 3 years. Thus, almost 72% of the respondents have been re-elected as leaders.

Profiles of the Institutions

Profile of the Federations

As has been discussed, the sample consists of SHGs covered by 7 Federations. These 7 Federations have total 208 villages, with 30 villages in each Federation on an average. On examining the households in the areas of these Federations, it is found find that in all there are 86607 households, of which 54%, 18% and 29% belong to BPL, Antyodaya and APL category, respectively.

5 of these Federations have been formed during last 3 years while the remaining 2 are more than 3 years old. For 4 Federations, there has been no change in leadership. Others have change in leadership once in 1 Federation, 2 times in 1 Federation and 3 times in 1 Federation, since their

formation. In total, there are 50 Clusters and 1005 SHGs under these Federations. There are 14

Days of Work Engagement

No. of Families

% Respondents

< 100 days 183 41 100- 250 days 254 53

> 250 days 29 6 TOTAL 481 100


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office-bearers, 7 are Presidents (from community) and 7 are Secretaries (paid). The Federations maintain registers and books like meeting minutes, cash book, general ledger, receipt book, voucher book, cheque issue register, stock register and visitors register. These books are updated regularly either by Secretary or Accountant of the Federation.

Savings and loans with the 7 Federations can be seen in the table below.

Table 9 Federation-wise Saving and Loaning Details

Item Name Mada Punjpur Jasela Dhambola Mandali Peeth Jhonthari Total Total Groups 169 123 165 164 141 127 116 1005

Total Member 3218 2201 2792 3068 2291 2266 2055 17891 Saving Mem. 2417 1303 1527 1913 1712 1376 1796 12044

% 75% 59% 55% 62% 75% 61% 87% 67% Total Saving 18196871 3542913 6309833 10045279 3816211 4737478 3050690 49699275

No. of Loanees 3025 1986 2131 2546 1893 2102 1495 15178 % 94% 90% 76% 83% 83% 93% 73% 85%

Loan

D

eman

d Saving 5252450 2352985 4436110 6810040 1846572 2396779 3084236 26179172 Bank 4540263 1587700 1720852 1429295 1622855 1708143 1528668 14137776 Total 9792713 3940685 6156962 8239335 3469427 4104922 4612904 40316948

Loan

Re

paym

ent Saving 5130743 2336463 3797150 6810040 1784922 2117873 3032729 25009920

Bank 4316229 1579000 1153404 1429295 1558755 1443873 1528668 13009224 Total 9446972 3915463 4950554 8239335 3343677 3561746 4561397 38019144

% 96% 99% 80% 100% 96% 87% 99% 94%

Out

stan

ding

Saving 14044848 3342382 5983000 9559056 3395401 3471494 3131713 42927894 Bank 17726717 1804032 3729666 3986757 4786983 4943467 1137782 38115404 Total 31771565 5146414 9712666 13545813 8182384 8414961 4269495 81043298

Loan Ratio 1%1-74 1%1-45 1%1-53 1%1-34 1%2-14 1%1-77 1%1-39 Avg. Loan Size 10503 2591 4558 5320 4322 4003 2856 5340

Loan

at R

isk

( 90d

ay) Principal 103250 7500 241281 0 33900 232873 23274 642078

Interest 34551 6500 153171 0 5178 247146 0 446546 Total 137801 14000 394452 0 39078 480019 23274 1088624

% 0% 0% 4% 0% 0% 6% 1% 1%

Out of the total 17891 members, 12044 (67%) members are saving their money with the SHGs as on March 2011, while 15178 (85%) members have availed at least one loan from the SHGs as on March 2011. The total savings of these Federations stand at Rs.4.97 Crore while the total loan outstanding

to the members is Rs.8.10 Crore, which is partly funded by own saving (Rs.4.29 Crore) and partly by bank loans (Rs.3.81 Crore). The total deposits of the Federations in the banks are to the tune of Rs.1.25 Crore. Loan repayment rate stands at 94%. The loan at risk (>90 days) is 1% of the total loan outstanding. In 2 Federations viz., Punjpur and Dhambola, their bank deposits are almost equal to bank loans. The result is very low surplus interest income for them, as highlighted in Figure 7.

Income of the 7 Federations from different sources for the year 2010-11 can be seen in the graph Figure 7. The Federations receive incomes mainly form surplus of interest income (i.e. interest received from members on loans minus interest paid to banks on loans), membership fee, and loan processing fee. Jasela Federation, for example, is having very high surplus interest, while Punjpur and Dhambola have none.

During the year 2010-11, the total income for all 7 Federations stands at Rs.52.72 lakh and the total expenditure at Rs. 51.99 lakh. 3 Federations (Punjpur, Mandali and Jonthari) are in deficit and the

remaining 4 are in surplus. The key heads of expenses are honorarium for various staff viz., secretary, accountant and field representative(s) and travelling expenses.


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Figure 7 Sources of Income of the Federations

Profile of Clusters

Clusters form the middle layer in the hierarchy and these are in turn clubbed into the Federations. The study covers 28 SHGs coming under the purview of 17 Clusters. On an average, each Cluster has 4 villages, 21 SHGs and 379 members. Out of the 17 Clusters under consideration, only 1 Cluster is more than 10 years old. 4 Clusters are 5-10 years old whereas as many as 12 are formed within last 5 years. Out of the all the Clusters involved in the study, Mada has the highest corpus with it. All the

Clusters conduct meeting regularly on monthly basis. They do all of their transactions with Bank of Baroda. Bank accounts are mostly handled by the leaders or office-bearers.

Profile of SHGs

Out of all the SHGs studied, there are few members leaving SHGs. 71% show no sign of members leaving them, whereas in the remaining SHGs nearly on an average 9% of the members have left so far. On the other hand, nearly 25% new members on an average have joined the SHGs.

In 86% of the SHGs, there has been no rotation of the office-bearers. SHGs are maintaining the books - Minutes book, cash book, ledger, individual pass book, loan ledger, monthly progress report, attendance and saving register etc. 96% SHGs are maintaining all the books. In 64% of the SHGs, members are saving Rs.100 per month while in remaining, they are saving Rs.50 per month.

39% SHGs are members of the Clusters for less than one year; 36% are members between 1-5 years and remaining 25% are members of the Cluster for more than 5 years. 95% SHGs (leaders) attend

Cluster meeting regularly. 18% of the members from SHGs are holding a position in Cluster. 11% of the members are acting as Secretary and 7% of the members from SHGs are acting as President in the Clusters.

SHGs are paying membership fee to the Federation. 25% of the SHGs are paying Rs.1000 per annum; 11% are paying Rs.2000 while 8% are paying Rs.2500. Others are paying less. The average membership fee paid by each SHG works out to be Rs.1103. Apart from the membership fee, average loan processing fee paid by each SHG to Federation is Rs.920 per annum. The average service charge collected by the Federation from each SHG is Rs.2173. Thus, total contribution per SHG is Rs.3733.

Regarding bank loans, out of all SHGs, 53% have received Rs.1, 00,000 or more; 25% have received between Rs.50,000-Rs.1,00,000 and about 22% have received less than Rs.50,000. The repayment period is generally 36 months. SHGs are charging interest at 9-24% per annum. The average interest charged comes about 15-16%.

0

200000

400000

600000

800000

1000000

Interest Recevied from Bank

Stationary Fee

Loan Processing Fee

Member ship Fee

Surplus Loan Interest


GM/Akshara/CmF /70

Less than 100022%

1001 to 500054%

5001 to 1000019%

More than 10000

5%

Cumulative savings of a member with SHG

Chapter IV: The Impact

PEDO has, to its credit, 25 years of microfinance history. It has created a large network of sustainable and viable institutions of poor women, which have helped them in manifold ways in improving their socio-economic status. The impact of the PEDO’s microfinance program is to be seen at two levels - one, individual and household level and two, institutional level in terms of their performance and sustainability.

Socio-economic Impact

Here, socio-economic impact at the level of a member and her family is looked at2.

Savings

67% members are saving Rs.100 per month with the SHGs while 33% are saving Rs.50 with the SHGs. For the entire sample, average monthly saving as done by a member stands at Rs.83.

Table 10 Monthly Saving with SHGs

Monthly savings (Rs.) No of Members % Share 50 161 33

100 320 67 TOTAL 481 100

Avg. Monthly Saving – Rs.83/member

54% respondents have (cumulative) savings in the range of Rs.1001 to 5000. 19% respondents have savings between Rs.5001 to Rs.10000 and 5% have savings more than Rs.10000. See figure below.

Figure 8 Cumulative Saving of a member with SHG

Members with the SHGs with longer time are having higher savings. See Table 11. For example,

members who joined the SHGs before 1999 have built cumulative average savings of Rs.13552 while those who joined recently during 2008-2011 are having an average savings of Rs.1207. Average savings of all the members in our sample is around Rs.3600 per member.

2 analyzing data of now-2011 vis-à-vis earlier-2007 based on the data from the present study; and baseline 2008 data in Aspur and Simalwara blocks, where data is available (particularly in loaning, access to facilities and household assets)


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Table 11 Age-wise number of members and average savings

Year of Joining the SHG No of Members Avg. Saving (Rs.) Up to 1999 37 13,552 2000-2003 74 6,308 2004-2007 157 3,212 2008-2011 213 1,207

Overall 481 3,596

Loans/Credit

The average loan taken so far by a member is Rs.18806 and average total outstanding as of date is Rs.6680. See Table below. It can be seen that the both the average amt borrowed and average loan outstanding are higher for older members and come down for newer members.

Table 12 Age-wise average amt borrowed and average loan outstanding

Year of Joining SHG

No of Members

Avg. Amt. Borrowed (Rs.)

Avg. no. of loans Avg. Loan

Outstanding (Rs.) Upto 1999 37 72,184 4 22,870 2000-2003 74 29,977 4 8,846 2004-2007 157 19,107 3 8,100 2008-2011 213 5,431 2 2,068

Overall 481 18,806 3 6,680 Best SHGs 133 30,115 4 10,888

Weak SHGs 116 15,409 3 7,462 Note: These borrowings/loans refer to mostly to the last 4-5 years. Further more than half of the members joined SHGs in the last 3-4 years. The latest loans are larger than earlier loans.

The loan to savings ratio (average amount borrowed/average cumulative savings) for the entire

sample also stands at 5.23 times. It denotes that on an average a member has borrowed 5.23 times of the amount saved with SHG. It is a healthy indicator as members are getting higher benefits by saving with SHGs.

Members of Best SHGs have borrowed twice the amount borrowed by Weak SHGs on an average and number of loans availed by members of Best SHGs is also higher.

Table 13 Subsequent Loans

There are 76% members, who have availed the loan at least once from the SHG. It can be inferred that 24% members have not taken any loan from the SHG so far. This is mainly because mostly these members belong to the new groups. Figure 9 No of Members taking loans now vs baseline

Similarly there are 65% people, who have gone for the loan for 2nd time. This is a marked improvement over the baseline figures (49%

for 1st time and 5% for 2nd time). See the graph below. The intake of loan has shown a positive

trend indicating increase in their capacity to borrow due to the presence of SHGs in their area.

The changing pattern of utilization of loan from consumption to livelihood related activities highlights an improvement their living standard. It seems that now they are able to meet the

Loans # Members # % 1 366 76% 2 312 65% 3 214 44% 4 123 26% 5 58 12% 6 5 1% 7 0 0%


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expenses on education, food and health etc., on their own and are taking loans for investment purpose. See Table 14.

Table 14 Purpose of the loan, % respondents availing the loan and average loan size ‘N’ indicates no. of loans

Loan-1 (N#366)

Loan-2 (N#311)

Loan-3 (N#213)

Loan-4 (N#122)

Loan-5 (N#57)

Loan-6 (N#4)

Overall (N#1073)

Purpose of the Loan

% Avg. Amt.

% Avg. Amt.

% Avg. Amt.

% Avg. Amt.

% Avg. Amt.

% Avg. Amt.

% Avg. Amt.

Agriculture 27% 2,905 22% 7,376 26% 13,355 22% 17,278 26% 18,000 25% 8,566 Livestock 10% 3,284 19% 7,425 18% 13,743 24% 14,011 32% 22,500 50% 12,500 17% 10,483

House 6% 4,938 15% 6,915 20% 11,083 22% 17,611 12% 20,429 25% 30,000 14% 10,639 Health 14% 2,430 9% 8,267 8% 5,261 7% 8,444 4% 20,000

10% 5,240

Retrieve Assets

8% 3,534 10% 7,533 7% 7,929 4% 11,200 4% 12,500 7% 6,506

Food 10% 1,319 4% 2,631 2% 3,875

5% 1,834 Consumption 8% 1,581 2% 5,083 1% 4,000 2% 15,000 2% 25,000

4% 3,407

Education 5% 2,342 5% 3,344 2% 8,636 2% 20,000 4% 20,000

4% 4,943 Others 4% 3,408 5% 7,433 5% 10,100 3% 15,000 2% 20,000

4% 7,833

Business 3% 5,200 3% 13,900 5% 13,500 10% 15,417 7% 35,000 25% 40,000 4% 14,702 Other Assets* 3% 4,150 2% 4,143 2% 17,400 1% 25,000 2% 25,000 2% 8,646

Non-farm Livelihoods

1% 2,000 3% 15,444 1% 13,333 1% 15,000 1% 12,500

Old Debts* 2% 3,500 1% 5,000 2% 7,500 1% 20,000

1% 6,143 Other

Livelihoods* 1% 3,000 0% 40,000 1% 12,500 2% 35,000 7% 35,000

1% 25,545 Total 100 2,865 100 7,414 100 11,370 100 15,781 100 22,333 100 23,750 100 8,452 *Old debts refer to debts other than that involve mortgaging assets (land, jewelries etc). Others refer to items other than other assets

and includes marriages, rituals etc. Other livelihoods refer to various other livelihoods but not business.

Key points that can be seen in the Table include -

1. Size of the loan increases for every subsequent loan from an average size of Rs.2865 as first loan to Rs. Rs.23750 as sixth loan. Overall average size of the loan stands at Rs.8452.

2. Largest % of loans go for agriculture (22-27%).

3. Maximum loan size is for the loans for livelihood activities (other livelihoods, business, livestock, and agriculture) and meeting house related expenses.

4. There is an increasing trend of loans being utilized for livelihoods activities (except agriculture) viz. livestock, non-farm livelihoods, business and other livelihoods. Total % of loans out of the 1st time loans used for the above activities was 15% while the same has gone up to 37% for the loans taken for 4th time. The increase is mainly in loans being used for livestock and petty

business. 5. Proportion of loans for food, education, health and other consumption is coming down for every

subsequent loan as more loans are utilized for productive purposes. 6. An increasing proportion of members are using loan for housing activities, indicating members’

preference for using the next loans for upgrading their house.

Changes in Income

See table 15. Migration (22%21%), Labour (24%18%) and Agriculture (18%14%) continue to be the dominant sources of incomes for members. MGNREGS is becoming important (5%11%). On the overall, average annual income per household has gone up from Rs.29068 to Rs.63066—showing an increase of 117%. Income from livestock, artisan, other produce and others has gone up by

170%, 313%, 92% and 287%, respectively justifying increased use of loans for these activities. The increase in MGNREGS is also significant (393%). This increase is accentuated for the members in Best


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SHGs across (168%) [as against 83% for the members of weak SHGs] and in Livestock (512%), other produce (112%) and services/jobs (1763%), demonstrating the clear contribution of functioning SHGs.

Table 15 Changes in Composition of Income of the Members

Income Source Earlier

(Rs/Year) % of Total

Now (Rs/Year)

% of Total

Increase (%)

Increase in Best SHGs

(%) Agricultural Income 5335 18% 9097 14% 71% 64% Livestock (Milk & Animals) 1746 6% 4707 7% 170% 512% Artisan 785 3% 3244 5% 313% 255% Other Produce 1036 4% 1991 3% 92% 112% Migration 6394 22% 13232 21% 107% 154% Labour 6984 24% 11062 18% 58% 167% Service/Job 4010 14% 7488 12% 87% 1763% NREGS 1409 5% 6943 11% 393% 395% Others 1369 5% 5302 8% 287% 122%

Total Income 29068 100% 63066 100% 117% 168%

It may be noted that the average credit inflow through SHGs in the last 4-5 years has been Rs.18,806 per household and Rs.30,115 to members of Best SHGs.

Changes in Expenditure

By the same token, average expenditure per household has increased by nearly 110% from Rs.22750 to Rs.47672 per annum. On the other hand, the food expenditure as a part of total expenditure has reduced from nearly 53%41%. People have succeeded to reduce the proportion of expenditure on

food. They could increase the expenditures on health (by 114%) and education (by 171%) with marginal increases in the proportion of expenditures (health: 10%11%; education: 6%7%). Further, they are able to meet these expenses with lower borrowings. They are spending now more on entertainment (by 416%), where expenses have gone up from earlier 1% 3% now. Their investment in assets has also gone up (by 943%) from earlier 1%7% now. This indicates a trend of moving away from the poverty at large.

Table 16 Changes in Average Annual Expenditures

Overall Best SHGs Weak SHGs

Expenditure Head Earlier (Rs.)

% of Total

Now (Rs.)

% of Total

Change in exp (%)

Earlier %

Now %

Earlier %

Now %

Food 11963 53 19342 41 62 48 34 60 49 Health 2357 10 5050 11 114 10 10 7 10 Education 1318 6 3570 7 171 7 7 4 5 Clothes 2638 12 5282 11 100 10 9 11 10 Entertainment etc. 250 1 1291 3 416 2 2 0 5 Assets 312 1 3255 7 943 4 10 0 3 Others * 3912 17 9882 21 153 19 27 17 18 Total Expenditure 22750 100 47672 100 110 100 100 100 100 *(Animal Husbandry, Electricity, Festivals, House maintenance & marriage etc.)

This trend is more visible for the members in Best SHGs vis-à-vis members in Weak SHGs, particularly

in Expenditure on Food, Education and Assets. It may be noted all households (across the weak and best SHGs) have savings earlier and now and the savings have increased.


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Well Being Status (House, Land and Livestock)

Table 17 captures the changes and status of assets of the member households. These assets include infrastructure, livestock, land and others (furniture, jewellery, hens, dogs etc). See Table 17.

Housing: Families with Kuchcha houses have come down from 91% earlier to 82% now. The corresponding result could be seen in terms of increase in families having Adha-Pucca (semi-built) [5%12%] and Pucca (Built) houses [4%6%]. 19%, 22% and 5% families, respectively, are now having separate kitchen, bathroom and toilet. Significant increase in the number of families (22%58%) using electricity is seen. 2% households are also using solar power nowadays.

However, there appears no change in the furniture holding. Jewelleery holding families have increased marginally (83%92%).

Livestock: A substantial growth can also be observed in livestock base of the members. Now on an average, each family is holding one buffalo/cow, one other cattle (mainly bullock) and two of goats/sheep. Total holding of cattle has gone up from about 2 animals earlier to 4 animals now. In view of this, the number of families with cattle sheds has increased significantly (0%28%).

Land: Land under irrigation has also marginally increased from 2.25 acres earlier to 2.4 acres now. However, no change is seen in terms of total landholding by a family.

Jewellery: The number of families possessing jewellery has also increased from 83% earlier to 92% now.

Table 17 Indicators– Well Being/Asset Status (House, Land and Livestock) Name of the Asset Earlier Now

Infrastructure In % In % Houses – Kuchcha 91 82 Houses - Semi-Pucca 5 12 Houses – Pucca 4 6 Separate Kitchen 6 19 Cattle shed 0 27 Bathroom 4 22 Toilet 1 5 Electricity 22 58 Solar 0 2 Others % % Jewellery 83 92 Live Stock Avg. Size Avg. Size Buffaloes / Cows 0.59 1.03 Other Cattle 0.64 0.93 Goats / Sheep 0.85 1.75 Land Avg. Size Avg. Size Land Bighas (2.5 Bighas - 1 acre) 4.44 4.28 Land irrigated Bighas 2.25 2.4

Availability of Physical Resources and Lifestyle Changes

See Table 18. It looks at all lifestyle related assets under different groupings. For each grouping, usage on different parameters like, ownership, access and use can be seen now and earlier. Comparison is in terms of percentage of the member households, owning, accessing or using all or some of the assets in a group, now and earlier.


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There is an increase in ownership, accessibility and usage for all the groupings of assets. For example, 6% of the families own cycle, motor cycle and bullock cart, all three, while none owned all three earlier. More families having access to modes of transportation like tractor, jeep, auto, truck

and goods van shows improved mobility. Increased access to means of communication like TV, mobile and computer enables them in having better communication with the outside world. Interestingly, 10% households have all the assets viz., radio, TV, mobile and computer, indicating the fast spread of these channels of communication in the rural areas.

Improved infrastructure in the area could be leveraged to connect the poor and marginalized people with the mainstream economy by strengthening their existing livelihood and creating new livelihood options through collective marketing.

Table 18 Availability of Physical Resources and Lifestyle Changes

Ownership Access Use

Household Article/Asset Earlier

% Now

% Earlier

% Now

% Earlier

% Now

% Cycle / Motor Cycle / Bullock cart

No. of Member families with all of the above 0 6

0 9

No. of Member families with some of the above 5 26

6 41 Radio, Television, Cell/Phone, Computer

No. of Member families with all of the above 0 6

0 10 No. of Member families with some of the above 4 51

4 52

Tractor, Jeep, Auto, Truck, Goods Van No. of Member families with all of the above 0 2 0 4 0 4

No. of Member families with some of the above 0 10 0 25 1 25 Cooking Gas

No. of Member families with above 0 2

0 3

Access to Government and Private Institutions

Table 19 looks at the awareness and degree of interaction of the members with various institutions in their locality. There is a marked increase in awareness, accessibility and usefulness and considerable increase in influence/control now (from earlier).

Table 19 Access to Government and Private Institutions

Government / Non-Government Facilities /

Institutions

Awareness Accessibility Usefulness Influence/Control Earlier Now Earlier Now Earlier Now Earlier Now

% % % % % % % % I. Anganwadi, School, Panchayat, Post Office, Health Sub-centre, Bank, Patwari Members rating "Good" in availing the above 2 21 2 20 2 21 1 16 Members rating "Some extent" in availing the above 7 72 7 73 7 70 7 35 II. Block Panchayat, Tehsil, Collector, Hospital, ZP, Police Station, Veterinary Hospital, Govt. Depts. Members rating "Good" in availing the above facilities 0 9 0 10 0 10 0 9 Members rating "Some extent" in availing the above 5 57 5 55 5 54 5 34 III. Gram Sabha, Elections, Market etc Members rating "Good" in availing the above facilities 5 22 6 22 5 23 5 20 Members rating "Some extent" in availing the above 23 63 25 64 22 62 10 34 Note: This table focuses on facilities and whether the members are aware, access, find it useful and if required whether they can control.


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Institutions at Village Level (Anganwadi, School, Panchayat, Post Office, Health Sub-centre, Bank, Patwari): 20%+ members have good awareness about all these institutions. They are accessing these institutions regularly and also find them useful. Also around 16% of the members are exercising

good influence or control over the working of these institutions. There seems to have been a significant improvement in these numbers compared with 1% or 2% earlier. Members, which are aware of, have accessibility to and find useful the above institutions to some extent are above 70% up from 7% earlier. Only 35% of the members are able to exercise influence or control over these institutions.

Institutions at Tehsil & District Level (Block Panchayat, Tehsil, Collector, Hospital, ZP, Police Station, Veterinary Hospital, Govt. Depts.): Earlier, there were no members who were having any knowledge or interacting with any of these institutions. Now, there are around 9% or 10% members, who are well aware of all these institutions; regularly accessing them for various purposes; finding

them very useful; and able to influence or control these institutions. More than 50% of the members have knowledge of or interacting with these institutions to some extent. However, only 34% of them are having some influence over them.

Other Institutions like, Gram Sabha, Elections, Market etc.: Earlier, only 5-6% members had good interaction with these institutions. Now, the figure has gone up to more than 20%. There are more than 60% of the members, who are interacting with these institutions to some extent up from more than 20% earlier. However, only 34% of the members are having some influence over these institutions.

Comparison with Baseline

The situation shows improvements in loan utilization and assets with members, when compared with the baseline benchmarking survey (2008, in Aspur and Simalwara blocks; therefore, strictly not comparable). Expenditure data is absent. Income indicates extremely low figure than what has come out in the present study (Rs.11952/year in 2008 as against Rs.29068 in 2007 and Rs.63066 in 2011).

Sources of income indicate some similarity in pattern in terms of agriculture and allied and labour amounting to around 50%. Deeper details are absent, in any case.

Loan Utilization: Table 20 captures the changes in loan utilization pattern now vis-à-vis baseline.

Table 20 Loan Utilization by Members in terms of % of total loans (now vs baseline)

Activities Baseline

2008 Now 2011

Agriculture 12% 25% Livestock & Animal Husbandry 14% 17% House related 31% 14% Health 8% 10% Consumption 2% 9% Repayments of debts 1% 8% Small business & other livelihoods 6% 6% Others (marriages, death rituals etc.) 21% 5% Education 2% 4% Purchase of Assets 2% 2% Total 100% 100%

Significantly, agriculture loans have increased (from 12% 25%). Consumption loans (2% 9%) and repayment of old debts and retrieving ornaments (1% 8%) have increased. Housing loans (for


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repair) have come down (31% 14%) as most of them no longer stay in Kuchcha houses. There is a dramatic decrease in others (functions) (21% 5%).

Social and Economic Parameters: Table 21 reflects improvement in access to Government facilities and institutions. The improvement is across all the categories of institutions like anganwadi, school, panchayat, post office, collector, police station, gram sabha, and gram sevak etc.

Their accessibility to the household assets has also seen improvement. Major improvement could be seen in tractor, jeep, auto etc category where earlier very few people were able to access these facilities whereas now 29% families are able to access these facilities. Also families having access to one or more facilities like radio, television, cell phone or computer has gone up from 30% to 63%.

Infrastructure related improvements are also significant. The house situation has improved for many. 12% and 6% people are possessing Semi- Pucca and Pucca houses as against 5% and 4% at the baseline. Other house related facilities like separate kitchen, cattle shed, toilet and electricity etc.,

have improved now. Table 21 Comparison with baseline on different parameters

Description of the Parameter Baseline

2008 Now 2011

I. Access to any one/some/all of the below Facilities/Institutions % % Anganwadi, School, Panchayat, Post Office, Health S/Centre, Bank, Patwari

72 93

Block Panchayat, Tehsil, Collector, Hospital, ZP, Police Station, Veterinary Hospital, Govt. Depts.

29 65

Gram Sabha, Gram Sevak, Ward Sabha, Elections, Market etc 49 86 II. Access to any one/some/all of the below Assets % % Cycle / Motor Cycle / Bullock cart 35 50 Radio, Television, Cell/Phone, Computer 30 63 Tractor, Jeep, Auto, Truck, Goods Van 0.45 29 Cooking Gas 1 3 III. Infrastructure % % Houses – Kuchcha 91 82 Houses - Semi-Pucca 5 12 Houses – Pucca 4 6 Separate Kitchen 2 19 Cattle shed 4 27 Bathroom 2 22 Toilet 1 5 Electricity 13 58 Solar 0 2

Land and livestock situation has also shown improvement. See Table 22. Average irrigated land has gone up from a mere half a bigha to one acre [the increase is not so high when only members’ responses during this study are taken]. From an average animal holding of 2, now the households

own about 4 animals. Table 22 Comparison with baseline (livestock & land)

Description of the Parameter Baseline 2008 Now 2011 Livestock Avg. Size Avg. Size

Buffaloes / Cows 0.74 1.03 Other Cattle 0.65 0.93 Goats / Sheep 0.72 1.75

Landholding Avg. Size Avg. Size Irrigated Land in Bighas (2.5 Bigha= 1 Acre) 0.54 2.40


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Perception of Members

Savings and Loans: Almost all the members, who are eligible to take the loans, are satisfied with the process (getting loan easily and on time) and loan sizes. Further, 66% members agreed with the fact that interest rates have come down thanks to their microfinance institutional architecture. Also, 89%

members consider SHGs to be a safe place to save their money. The impact is more perceptible in the case of the members of Best SHGs.

Table 23 Responses of Members of the Functioning of SHGs S. No. Parameter % Members Best SHGs

Savings and Credit 1 Saving safe in SHG 89 99 2 Getting loans easily 76 99 3 Used loans for the purpose 75 96 4 Getting sufficient amount of loans 74 98 5 Loans available on time 74 98 6 Re-payment capacity increased 70 95 7 Interest on Loan decreased 66 81

Food and Work

8 Adequate food - throughout the year 60 70 9 Able to get work - throughout year 40 59

10 Getting benefit from the schemes 29 41

Food and Work: 60% members are getting adequate food throughout the year. Further only 40% are

able to get work throughout the year. Only 29% think that they are getting benefits from the government schemes. The members of Best SHGs have a better situation, as can be seen above.

Social Impact: It appears that the program has contributed a lot in empowering the women and enhancing their confidence. 88% members think that their confidence has improved while 85% report that they have been able to establish their separate identity. 81% women feel that their mobility has improved. There is a growing feeling of solidarity amongst women as expressed by 85% of them. Similarly 85% women report reduced violence. It has boosted their confidence (88%) and

has given them better control over their resources (73%). However, their responses for the questions regarding their ability to voice ideas (52%) and ability to represent on issues (39%) are on the lower side. The impact on the members in Best SHGs is sharper than the overall impact, as can be seen in the table below.

Table 24 Social Change as observed by members S. No. Impact/Achievement % Yes Best SHGs

1 Confidence 88 100 2 Identity 85 98 3 Less violence 85 100 4 Solidarity 85 99 5 Mobility 81 93

6 Able to take decisions independently/ with min. outside interference

75 95

7 Control over my resources 73 95 8 Able to voice my ideas, concerns effectively 52 74 9 Able to represent on issues 39 55

On the whole, this indicates that they have become confident of working with and operating in the

familiar SHG environment. But, efforts are needed to expose them to the realities beyond the SHG set-up and build their capacities to enable them to deal with other areas of social concern.


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Institutional Performance

Institutional performance is captured through the understanding the members’ and leaders’ perceptions (in profiles, interactions and focused group discussions, apart from the member’s responses through the structured questionnaires) about the institutions and case studies. An analysis pertaining to costs vis-a-vis business of the institutions also show some light on this.

These perceptions/responses have been on different aspects like processes, activities of the institutions and future plans of the institutions etc. These have been further grouped, analyzed and interpreted to appreciate the performance of the institutions.

Different Aspects of Institutional Functioning

Members, SHGs and Federations have rated 20 processes/items relevant to them. See Table 25. It captures the percentage of the members (of #481)/SHGs (of #28)/Federations (of #7) that have expressed high satisfaction with/usefulness for each of the process/item.

Table 25 View of Members, SHGs and Feds on Different Aspects of Institutions S. No. Process / Item Members SHGs Federations

% % % 1 Savings 84 87 100 2 Loaning 69 86 100 3 Repayment 64 68 71 4 Membership Fee 86 77 100 5 Loan Processing Fee 82 86 100 6 Other Service Charges 41 59 100 7 Mobile Transactions 40 39 33 8 SHG Functioning 65 87 86 9 Cluster Organization 36 76 57

10 Federation 33 82 100 11 Conflict Resolution 30 55 33 12 Audit 20 32 100 13 Planning and Budgeting 25 50 100 14 Livelihood Activities 31 45 43 15 Emergencies 36 55 71 16 Staff / Technical Support 53 64 71 17 Bank Linkages 51 55 71 18 Bookkeeping 57 78 67 19 Solidarity 69 78 100 20 Leaders 70 83 100

Members: 84% members are satisfied with the savings activity. More than 60% are satisfied and

comfortable with loaning and repayment in the groups. 70% of them are satisfied with the leaders while 69% find solidarity amongst the groups to be high. Book-keeping, technical support and bank-linkages are found to be useful by around 50%-60% of the members. Only 30-35% of the members are satisfied with Cluster and Federation. Also there seems to be low awareness about the planning & budgeting and audit activities where only less than 25% members considered them useful. 31% members are highly satisfied with the livelihoods activities of the program. 40% of the members find

mobile transactions highly useful. More than 80% of them are aware about the membership fee and loan processing fee charged by SHG. However, only 41% of them are aware of other service charges.

SHGs: More than 85% SHGs are satisfied with the savings and loaning activities while only 68% SHGs

are satisfied with the repayment activities. Satisfaction level is not very high because repayments are


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not regular sometimes. 87% are satisfied with the SHG functioning whereas 76% and 82%, respectively are satisfied with Cluster and Federation. Around 80% find solidarity and leaders to be important aspects in the management of SHGs. 55% are satisfied with conflict resolution mechanism

of the Clusters. Only 32% and 50% SHGs are aware about audit and planning & budgeting activities. Only 45% are satisfied with livelihood activities. 55% have found the bank-linkages to be useful.

Federation: 100% Federations are either engaged in or satisfied with savings, loaning, audit,

planning & budgeting activities. All of them are charging membership fee, loan processing fee and other service charges. All of them have expressed solidarity and leadership to be important aspects of the institutional management.

It can be inferred from the above that members and SHGs are more aware about the activities happening at their level. The activities, in which they do not have direct involvement or which are carried out by Clusters or Federations, indicate low awareness levels among the members e.g. only 20-25% of the members are considering auditing and planning & budgeting to be useful for them.

Activities

Apart from savings and credit related activities, the most dominant/broad-based activities in the SHG-Cluster-Federation institutional structure include agriculture (more than 50%), livestock and

related (about 50%), home-based enterprises, and linkages with government and other schemes. See Table 26.

Table 26: Activities done by the Institutions (as responded to by institutional leaders)

Activities SHGs N#28

Clusters N#17

Federations N#7

% % %

Agriculture based livelihood 50 57 Livestock and dairy based livelihood 29 43 Promotion of home based Enterprises & other livelihoods 29 43 Credit and saving services and other support services 74 60 100 Preparation of SHG plans 4 4 promotion of SHGs/ Clusters 11 18 Conducting trainings 14 86 14 Bank linkage 4 39 14 Conflict resolution and monitoring 11 Facilitated building houses for members/ centering 11 7 Health and hygiene 14 11 Education 14 14 Afforestation/ plantation 7 Created emergency fund 7 Insurance of livestock 4 Drinking water 4 Irrigation facilities 4 Linkages with Government Schemes & other activities 68 29

However, only 14% Federations have conducted training and established bank linkages. 86% Clusters

have conducted training. 68% of them agreed with the view that members have been linked with the livelihood activities under government schemes. Bank linkages were done by 39% of the Clusters. A few of the SHGs have intervened to an extent in other activities – health (14%), education (14%), housing (11%) etc. 14% SHGs are also involved in conducting trainings to members.


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Future Plans

Responses across the institutions in indicating future plans include livelihoods activities (64%), increase in savings (46%) and capacity building (32%) by SHGs; increase in savings (100%), capacity building (96%), making SHGs self-reliant (68%), livelihoods activities (64%) and improved bookkeeping and documentation (46%) by Clusters; and registration of Federations (71%), training and capacity building (43%), recovery of defaults (43%) and self-management (43%) by Federations. See Table 27.

Table 27: Future Plans of the Institutions (Number of institutions expressed in % terms)

Activities SHGs N#28

Clusters N#17

Federations N#7

Enhance livelihoods/ link with livelihood opportunities 64 64 28 Increase savings 46 100 Extend loans to members/ Bank linkage 14 7 14 Trainings, camps and exposure visits of leaders/ members 32 96 43 Making SHG self-dependent/ Minimizing loans from bank 18 68 Build conducive environment for SHG activities 7 33 New and more SHGs 25 29 Make Cluster/ Federations self managed 14 4 43 Linking with Federation 11 33 Improved quality of record writings and bookkeeping 46 14 Leadership development 14 Insurance coverage 18 Reduce interest rate on loans 11 33 Recovery of default amounts 7 28 43 Registration of Federation 71 Return share of members who have left the group 7 Address social issues like girl child education & child marriage 4 7 14 Take steps to curb child migration 4 4 Promote education 4 7 14

Also, Federations want to would want to take up livelihood activities (28%) and start more SHGs (28%). Federations (43%), Clusters (96%) and SHGs (32%) want to take up capacity building including training programs and exposure visits.

33% Clusters are talking about reduction in interest on loans and building conducive environment for SHGs. Interestingly, 18% SHGs show interest in insurance activities and a similar number want to become self-reliant fully.

Training

The trainings required at various levels are drawn from the responses of the institutional leaders.

At Federation Level: Almost all the leaders have received various types of trainings. 86%

respondents have attended the leaders’ training; more than 50% have attended annual planning and budgeting; and 50% have attended training on mobile-based transactions and online MIS training.

However, there is an expressed need for imparting more training about technical areas like credit planning, financial sustainability etc., apart from livelihoods and collectives.


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Table 26 Training programs conducted by the Federation (% respondents saying yes) S. No. Type of the Training % Yes

1 Federation leaders' training 86 2 Annual budget training 72 3 Annual planning training 58 4 Training on the mobile based transaction 50 5 online MIS training 50 6 Federation registration 43 7 Federation subcommittee training 28 8 credit planning training 14 9 financial sustainability 14

At Cluster Level: Unlike training at Federation level and SHG level, the responses for Cluster level

trainings came from trainers, who were/are involved in imparting the training (leaders and field representatives). Key trainings imparted at the Cluster level are on record writing, IT-enabled MIS, leadership, livelihoods activities, self-dependency, planning and budgeting.

At SHG Level: 71% members have attended training on their roles and responsibilities. Other trainings included agriculture (68%), SHG environment (50%), conducting meetings (50%), bank linkages (39%) and conflict resolution (36%).

S. No. Subject of the Training % 1 leaders on roles and responsibility/ leadership 71 2 Agriculture 68 3 building conducive environment for SHGs 50 4 organizing/ conducting annual meetings 50 5 bank linkages 39 6 conflict resolution 36 7 credit management 21 8 Livelihoods 14 9 Cluster management 11

10 Training for producer groups 11 11 loan distribution 4

SHG Members’ Perception

Clusters’ Role: 80% members think that the Cluster’s main activity is approving loans. 5% members also think that Cluster plays an important role in conflict resolution. Majority of the members are not able to either recall the support provided by Clusters or they are not exactly aware of those supports which may be subtle in nature.

What does the Cluster do for you S.No. Response of the Members %

1 Loan application approval process 80 2 Conflict resolution 5

Federations’ Role: 56% members think that they are getting training and support from Federation in planning and monitoring. 24% members report that the Federations are helping them in managing their groups, Clusters and supporting in promoting livelihoods activities. 7% specifically indicated

the activities of Federations in supporting auditing and budgeting. However, members could not indicate other key roles of the Federation like taking rotation of funds amongst different SHGs, helping them in bank linkages etc.


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What does the Federation do for you S. No. Response of the Members %

1 Training, Planning & Monitoring 56 2 Auditing and Budgeting 7

3 Manage Group / Cluster and Support in Livelihood activities

24

Key Impacts of SHGs: According to members, SHGs have provided them a platform to save, avail loans at low rate of interest and liberate themselves from the hands of moneylenders. They also indicated an improvement in their self-confidence and personal image. Thus, members feel that

SHGs have improved their financial and social status. Further, they helped in increased assets and provided support in livelihoods, albeit on a lower level.

Across the indicators, the members of the Best SHGs perceive better impact vis-à-vis Overall.

Members of older SHGs have more perceived impact on awareness, assets and livelihoods vis-à-vis members of younger SHGs.

Key Impacts of SHG on Family

Age Group-wise %

S. No. IMPACT

Overall %

Best %

Weak %

Till ‘99

2000-03

2004 -07

2008-11

1 Increase in Savings influencing other Developments 97 98 96 92 100 97 98

2 Loan availability with lesser rate of interest 73 77 85 81 68 83 66 3 Increase in Confidence and personal image 70 80 76 11 96 83 66 4 Free from Moneylenders 65 78 76 46 89 81 48 5 Assets 24 38 22 43 35 25 15 6 Livelihoods Support 15 26 20 35 24 17 7 7 Awareness 12 29 7 54 24 10 3 8 Health/medical Support 4 14 0 3 0 8 2

In a situation without SHGs, 84% members think that they would be forced to pay high interest on their borrowings and they would get trapped in the clutches of moneylenders (again).

In case, if SHG closes down, 71% members are confident to revive and keep the SHG alive and manage it themselves. 17% members responded that they would not let it happen. Overall 88% are

highly confident to take it forward. Thus, SHG occupies an important place in the personal, emotional and social space of a member.

Interactions/Discussions with Leaders and Staff

With Leaders

Discussions with leaders (56), at SHG, Cluster and Federation levels, have focused on benefits of Clusters and Federations, challenges faced and suggestions for improving the performance.

43% leaders think that the major benefit from Clusters and Federations is the information on government schemes and best practices of other SHGs, followed by bank linkages (38%), and transparency and awareness about SHG functioning (21%).

Other benefits include linkages with livelihoods opportunities, establishing an identity of own and recognition/respect from others, interface between institutional tiers and making SHG work plans.


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Table 27 Responses on benefits to SHGs from Cluster and Fed (% respondents saying yes)

Benefits to SHGs from Cluster and the Federation % Yes Information on government schemes/loans/successful practices of other SHG available 43 Bank linkages 38 Transparency make members aware of SHG functioning 21 Linking members with livelihood opportunities 14 Established an identity of own and received recognition and respect from others 14 Act as an interface between SHG and Cluster/dissemination of Cluster and Federation 13 Make work plan at SHG level 9 Manage finances of SHG/record checking 7 Reduction in interest rates 7 Trainings 7 Ensure timely repayment of loans 7 increased confidence in members/ability to decision making 7

The challenges, the leaders listed include - initial distrust in the institution of SHG and negative

response from some people (31%), followed by loan default (13%), limited knowledge in maintaining records and managing SHG (11%), external organizations and people who misguide members (11%) and limited support from the elders and family (9%).

Table 28 Challenges as perceived by leaders (% people saying yes)

Challenges faced in performing the duty % Initial distrust in the institution of SHG/ negative response from some people 30 Loan default 13 Limited knowledge in maintaining records and managing SHG 11 Organizations and people who misguide members 11 Non acceptance of SHG movement by the elderly/ limited support from family 9

The leaders’ suggestions for betterment of SHGs include - exposure and trainings (41%), reduction in

rate of interest (34%), increase savings (20%), taking more loans from increased savings (20%) and livelihoods activities (18%).

Table 29 Suggestion by leaders for improving the effectiveness of SHGs

Suggestions for the betterment of SHG % Exposure/ Conduct trainings on building conducive environment for SHGs, leaders etc 41 Reduce Rate of Interest 34 Minimize loan from banks/ extend loans to members from savings 20 Increase savings amount 20 Greater promotion of livelihood activities 18 To conduct trainings followed by SHG activities 5 Link more members to SHG/ increase membership 5

With Staff

Most of the staff in the institutions and microfinance program perform the following activities -

organizing people into groups, training groups and maintaining the accounts, online mobile-

based transactions;

promoting and nurturing Clusters and Federations ;

training in other activities;

livelihood enhancement related;

health and education related;

bank linkages;


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All the staff members have minimum qualification as SSC. Some of them have done masters and graduation. As per the selection procedure, almost 62% are selected through interview and others

are either deputed or promoted from various projects internally or externally.

They have received trainings to deliver their responsibilities. These include leadership, bookkeeping and MIS, livelihoods activities like goat rearing etc., business processes and

government programs like NRLM etc.

linkages with the government schemes ; and

natural resource management related.

According to the staff, they have benefited from new technology, trainings and improvements in their activities in delivering benefits to the SHG members. On the other hand, they think that they are facing problem due to lack of awareness, illiteracy of members, interference of other NGOs and changing situation. They also expressed concern about defaulting members in repaying.

Their key suggestions include running awareness campaigns; transferring program ownership to the

community completely; developing local level volunteers and facilitators to support the institutions; building mechanisms for ensuring members not to borrow more than required/the ability to repay; strong persuasion to recover defaulted loan from the

members; timely repayment of loans; and building peer pressure processes.

Case studies

25 Case studies have captured the essential trends (on a scale) of the impact of SHG-Cluster-Federation institutional architecture of poor women and their influence on their lives. The key pointers from the case studies include -

SHGs have inculcated in members the habit of regular savings and have also promoted the internal lending. They have influenced the interest rate to come down in the region. They are

able to meet their sudden cash requirements too.

The linkages with banks and other financial institutions have helped them in having access to larger funds for livelihoods activities and productive purposes like buying of land or livestock. Also a good number of members have been able to free their mortgaged assets, jewellery etc., from the moneylenders and landlords.

With the help of money borrowed from the SHGs, members have entered into entrepreneurial activities, like setting-up a flour mill, starting a shop or taking up some artisan work etc. SHGs have also imparted them various skills and training to better equip them with changing situations. It has led to increased income for the family.

Institutions have helped the members and their families in achieving economic independence. It

has resulted in creating assets and capital formation for the family, which has reduced their vulnerability and migration. SHGs have removed the physical and financial barriers which existed in the area and among the people.

Institutions have helped in social mobilization of the women. Women are involved in the

decision making process. SHGs have promoted ownership in the women and built an atmosphere of trust and confidence among the groups and members in the area.

These institutions have also helped women members in resolving their personal disputes.

Women have regained respect in the family and in the community. It has led to their improved confidence.


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SHGs have supported health related interventions and spread awareness among the people in the area. They have also promoted girl education.

Also, there have been a few cases of failure and conflicts in forming groups and among members,

because of which members have left the groups. These conflicts are in the nature of family disputes and poor relationship with leaders etc. Nonetheless, by and large, SHGs have helped in building leadership and inculcated an urge in the people to fight their deprivation and exploitation, keep their esteem high and bring in justice.

See the case studies at Annexure 1.

Analysis of Costs and Business done by the Federations

A budget showing Federation-wise and head-wise break-up of expenses for the year 2010-2011 has been used to arrive at the cost pattern and its burden on an SHG and a member.

All the 12 Federations together have incurred Rs.280 per member on an average, out of which the maximum expenses (71%) are incurred on honorarium of Federation Coordinators, Accountants, Computer Operators, Field Representatives and Trainers. On an average, Rs.198 per member goes towards honorarium. Other heads of the expenses are travelling, IT/technical, stationery, premises

rent, exposure visits, meeting expenses, electricity and annual audit etc. See Table 30 for detailed expenses.

Table 30 Head-wise Expenses for all the 12 Federations Expense Head Total Expenses (Rs.) % of Total Exp./ Member (Rs.)

Honorarium 6,310,675 71.6% 198.0 Travelling Expenses 836,243 9.4% 26.2 IT/Technical Expenses 547,854 6.1% 17.2 Stationery 287,468 3.2% 9.0 Premises Rent 207,958 2.3% 6.5 Sundry Office Expenses 185,075 2.1% 5.8 Exposure Visits 180,000 2.0% 5.6 Annual General Meeting Expenses 103,290 1.2% 3.2 Electricity 81,600 0.9% 2.6 Federation Meeting Expenses 54,412 0.6% 1.7 Annual Audit 49,500 0.5% 1.6 Capacity Building 964 0.01% 0.0

Total 8,940,475 100% 280.5

Table 31 shows Federation-wise details of expenses. For the total 1760 SHGs, expenses are Rs.89.40

lakh, with an average of Rs.5080 per SHGs. Expenses are highest for Bichhiwara Federation (Rs.7172/SHG) and lowest for Dewel Federation (Rs.1787/SHG). Similarly, at member level, expenses are highest for the same Bichhiwara (Rs.390/member) and lowest for Dewel (Rs.101/member).

These expenses do not include training, capacity building, monitoring and supervision by PEDO and the staff and administrative costs of PEDO as they are not borne by Federations.


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Table 31 Federation-wise break-up of Income & Expenses

Name of the

Federation Income Total

Expenses No. of SHGs

Exp./ SHG (Rs.)

No. of Members

Exp./ Member

(Rs.)

Loan Granted*

during 2010-2011

(Rs.)

% (Total exp/Loan granted)

Mada 1,550,075 1,131,560 169 6,696 3218 352 8,559,262 13.20%

Bichhiwara 1,597,980 867,830 121 7,172 2224 390 3,771,141 23.00%

Ganji 1,305,718 847,200 198 4,279 3776 224 10,365,300 8.20%

Dewel 281,367 269,810 151 1,787 2675 101 2,451,700 11.00%

Dhambola 856,625 829,060 164 5,055 3068 270 10,433,850 7.90%

Kuna 826,948 820,973 146 5,623 2691 305 6,013,100 13.70%

Jasela 990,417 865,768 165 5,247 2792 310 6,541,545 13.20%

Mandali 424,359 677,800 141 4,807 2291 296 6,004,600 11.30%

Peeth 772,510 630,364 127 4,963 2266 278 5,161,900 12.20%

Sabala 1,040,768 935,280 139 6,729 2618 357 4,641,300 20.20%

Punjpur 470,779 571,940 123 4,650 2201 260 3,375,000 16.90%

Jhonthari 207,612 492,890 116 4,249 2055 240 6,418,960 7.70%

Total 10,325,158 8,940,475 1760 5,080 31875 280 73,737,658 12.10%

* loans from savings (do not include loans from bank linkages)

All the Federations have disbursed a loan of Rs.7.37 Crore. The total expenses are 12.1% of the total loan. However, these federations have received Rs.31.70 lakh through membership fee, loan

processing fee, stationery fee, interest from banks etc. Interest paid by members on loan from on funds is Rs.1.17 Crore (15.8% of loan on average). 40% of this interest (a.k.a. service charges) comes to federations is Rs.46.89 lakh. Total income of the federations is Rs.1.03 Crore as against the total expenditure of Rs.89.4 lakh, indicating a net deficit of Rs.13.8 lakh. However, there are only three federations (Mandali, Punjpur and Jhonthari) in deficit and the remaining federations are in surplus.

Options to augment portfolio of incomes include - increase the spread % from 40% to 50% or so; increase the average interest rate; take 2-3% or so interest spread from bank loans also; surpluses from collective livelihoods and business activities; and increase the number of SHGs/SHG members serviced by them significantly. This issue requires urgent reflection and action.


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Chapter V: In Essence

Conclusions

The conclusions of the study are based on responses received from 481 SHG members and leaders in

28 SHGs spread across 17 Clusters and 7 Federations in Dungarpur and also interaction with other stakeholders in the field.

Profile of the Respondents

Members: 44% members have joined SHGs during the period 2008-2011 while 33% of them joined between during 2004-07. 88% members covered by the study are below 50 years of age. 91% are STs while 81% are from BPL category. Around 76% families pursue multiple livelihoods viz., agriculture, livestock and wage labour for earning their livelihoods whereas only 1% families are deriving their

income exclusively from agriculture. Others are dependent on activities like petty business, migration, artisan and non-farm livelihoods. Only 6% are getting more than 250 days of work while 41% are getting less than 100 days of work in a year.

Leaders: 23% leaders have gone through formal education. 70% leaders are literate (who can read and write their name). 91% are below 50 years of age. 86% consider agriculture as their primary occupation while trade & home-based enterprise is the primary occupation of 8% leaders. Secondary livelihood options in their view are unskilled labour, migrant labour, MGNREGS, livestock, regular employment and skilled employment. 72% leaders have been in their position for more than 3 years.

Profile of the Institutions

Coverage: 7 Federations in the sample have total 208 villages and 86607 households. As against 72% (BPL 54% and Anthyodaya 18%) households as potential target, the coverage is 17891 members (20%). The members who save and/or avail credit is lower than this.

Federations: Only 2 Federations are more than 3 years old while the remaining 5 have been formed during last 3 years. None of the Federations have been registered (they are considering to register themselves soon). There has been no change in leadership for 4 Federations. Savings with the Federations as on 31 March 2011 are of Rs.4.97 Crore. Total loan outstanding to members is Rs.8.10 Crore, funded partly by own funds and partly by loan from banks. Loan repayment rate is 94% and loan at risk (>90 days) is 1% of the loan outstanding. Total income for all 7 Federations, in 2010-11, is Rs.32.30 lakh whereas they have spent Rs.26 lakh on honorarium and Rs.3.33 lakh on travelling.

Clusters: Out of the 17 Clusters, only 1 Cluster is 10+ years old. 4 Clusters are 5-10 years old and 12 Clusters have been formed during last 5 years.

SHGs: In 71% SHGs, there has been no withdrawal of membership. 9% SHG members have left their SHGs. 25% members have joined SHGs later. 89% SHGs are conducting meetings every month whereas in 86% SHGs, there has been no rotation of leadership. 96% SHGs are maintaining all the

books. Average savings per member is Rs.83 per month now. 95% SHGs attend Cluster meetings regularly. 18% SHG leaders are also leading Clusters as President or Secretary.

53% SHGs have received loans of more than Rs.1.0 lakh from banks; 25% between 0.5-1.0 lakh and remaining 22% less than Rs.0.5 lakh. Interest charged by SHGs to the members is 9-24% per annum.

Total average contribution (including membership fee, loan processing fee and service charge) per SHG is Rs.3733.


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Socio-economic Impact

There are significant changes in various socio-economic aspects/parameters of an individual and her family over the last 4 years -

Savings: 24% members are having more than Rs.5000 of cumulative savings; 54% are having savings

in the range of Rs.5000-10000 while 22% are having savings of less than Rs.1000. The average cumulative saving of a member with SHG is Rs.3596. Members who have been with SHGs for more number of years, are having higher savings than the members with lesser number of years.

Loans: Average amount borrowed by a member from SHG is Rs.18806. It is more than 5 times the savings kept by him with the SHG. Average loan outstanding with SHG as on 31 March 2011 is Rs.6680. The members with SHGs for more years have borrowed more and have higher outstanding loan as compared with the members for lesser years. 76% have taken loan once from SHGs and 65% twice as against baseline figure of 49% and 5%. Around 25% of the loans are used for agriculture activities, followed by livestock 17% and house 14%. Higher amount of loans are taken for livelihood

activities (e.g., other livelihoods, non-farm livelihoods, business, livestock and agriculture) and housing. Average size of loan increases with every subsequent loan. Also more of subsequent loans are used for productive activities viz., livestock, business and non-farm livelihoods and up-gradation of house. Proportion of loans used for consumption activities like, health, education and marriage comes down for every subsequent loan. Currently, overall average size of the loan is Rs.8452.

Income: Migration, Labour and Agriculture continue to be the dominant sources of incomes for members. MGNREGS is becoming important. Average annual income of a member has gone up by 117% from Rs.29068 to Rs.63066. Income from livestock, artisan, other produce and others has gone

up by 170%, 313%, 92% and 287%, respectively justifying increased use of loans for these activities. The increase in MGNREGS is also significant (393%).

Expenditure: Average annual expenditure shows an increase of 110% from Rs.22750 to Rs.47672.

Food expenditure has reduced from 53% earlier to 41% now. The expenditures on health and education have shown with marginal increases. People are spending now more on entertainment (by 416%). Their investment in assets has also gone up (by 943%) from earlier 1%7% now. This indicates a trend of moving away from the poverty at large.

Well-being Status (House, Livestock and Land): Families with Pucca or Adha-Pucca house have doubled from 9% to 18% (more loans of higher amount taken for this purpose). Other house related infrastructure like separate kitchen, bathroom, and toilet are also showing a drastic improvement. Now 27% families are having cattle-shed whereas earlier there was none (more shelters are needed for accommodating more animals). 58% of the families are now using electricity as against 22%

earlier. 92% of families are having jewellery as against 83% earlier. Average holding of livestock has gone up from about 2 animals earlier to 4 animals now. Land under irrigation has also marginally increased from 2.25 acres earlier to 2.4 acres now.

Physical Resources & Lifestyle Changes: There is an increase in ownership, accessibility and usage for all types of assets. 6% of the families own cycle, motor cycle and bullock cart, all three, while none owned all three earlier. More families having access to modes of transportation like tractor, jeep, auto, truck and goods van shows improved mobility. Increased access to means of communication like TV, mobile and computer enables them in having better communication with the outside world. Interestingly, 10% households have all the assets viz., radio, TV, mobile and computer, indicating the fast spread of these channels of communication in the rural areas.


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Interaction (aware of, have access to and find useful) with and influence over Government & Private Institutions: On the overall, there is a marked increase in awareness, accessibility and usefulness and considerable increase in influence/control now (from earlier) over

institutions/facilities at village and higher levels. 20% families (2% earlier) are able to approach all of the village level institutions viz., Anganwadi, School, Panchayat, Post Office, Health Sub-centre, Bank, and Patwari while 70% (7% earlier) are able to approach these institutions to some extent. However, 16% (1% earlier) families are having good influence over the working of these institutions whereas 35% (7% earlier) are able to influence them to some extent. Similarly, at block level and district level institutions viz., Block Panchayat, Tehsil, Collector, Hospital, ZP, Police Station, Veterinary Hospital

and Government Departments, around 9-10% families (none earlier) are interacting with them or able to influence them. More than 50% (5% earlier) of the families are interacting with these institutions to some extent while 34% (5% earlier) are influencing them to some extent. More than 20% (5-6% earlier) are having good interaction with Gram Sabha, elections and market etc., while more than 60% (20-25% earlier) are having to some extent. Only 34% of the families (10% earlier) said that they are able to influence them to some extent.

Comparison with Baseline: 2011 data vis-à-vis baseline (2008, in Aspur and Simalwara blocks) indicates significant improvements.

Loan Utilization Pattern: More loans are going to agriculture (12% baseline to 25% now) and livestock (14% to 17% now). Loans used for house related expenses have come down from 31% in baseline to 14% now and for others (like marriages and death rituals) from 21% to 5%. Also, consumption loans (2% 9%) and repayment of old debts and retrieving ornaments (1% 8%) have increased.

Social and Economic Parameters: Access and use across all the categories of institutions like anganwadi, school, panchayat, post office, collector, police station, gram sabha, and gram sevak etc., has shown improvement. Assets have also increased.

93% respondents are able to access any one/some/all of the local level institutions as against

72% baseline; and 65% to block level institutions as against 29% baseline.

More number of members (35% baseline to 50% now) are able to access any one/some/all of the means of conveyance (cycle, motor cycle and bullock cart); more (30% to 63%) are able to access means of communication & entertainment (radio, television, cell phone and computer);

more (1% to 29%) are able to access modes of transportation (truck, jeep, tractor, auto and goods van).

There is a marked improvement in housing related infrastructure with members - Pucca houses (4% baseline to 6% now), Semi-Pucca houses (5% to 12%), separate kitchen (2% to 19%), bathroom (2% to 22%), toilet (1% to 5%) and cattle-shed (4% to 27%).

Average holding of cattle (cow, buffalo, bullock, goat & sheep) has increased from 2 animals per family in baseline to around 4 animals now. Average irrigated land has increased from half a bigha (0.2 acre) in baseline to 1 acre now.

Perception of Members

These capture members’ understanding, satisfaction and expectation from the processes and functioning of the SHGs.

Savings and Loans: Almost all the members, who are eligible to take the loans, are satisfied with the

process (getting loan easily and on time) and loan sizes. Further, 66% members agreed with the fact


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that interest rates have come down thanks to their microfinance institutional architecture. Also, 89% members consider SHGs to be a safe place to save their money.

Food and Work: 60% members are getting adequate food throughout the year. Further only 40% are able to get work throughout the year. Only 29% think that they are getting benefits from all the government schemes.

Social Impact: It appears that the program has contributed a lot in empowering the women and enhancing their confidence. 88% members think that their confidence has improved while 85% report that they have been able to establish their separate identity. 81% women feel that their mobility has improved. There is a growing feeling of solidarity amongst women as expressed by 85%

of them. Similarly 85% women report reduced violence. It has boosted their confidence (88%) and has given them better control over their resources (73%). They are able to voice their ideas effectively (52%) and represent on issues (39%).

This indicates that they have become confident of working with and operating in the familiar SHG environment. But, efforts are needed to expose them to the realities beyond the SHG set-up and build their capacities to enable them to deal with other areas of social concern.

Institutional Performance

Members, SHGs and Federations have rated 20 processes/items in institutions relevant to them. Generally, their satisfaction levels are high.

Members: 84% members are satisfied with savings activity. More than 60% are satisfied and comfortable with loaning and repayment in the groups. 70% of them are satisfied with the leaders while 69% find solidarity amongst the groups to be high. Book-keeping, technical support and bank-

linkages are found to be useful by around 50%-60% of the members. There seems to be low awareness about the planning & budgeting and audit activities where only less than 25% members considered them useful. 31% members are highly satisfied with the livelihoods activities of the program. 40% of the members find mobile transactions highly useful. More than 80% of them are aware about the membership fee and loan processing fee charged by SHG. However, only 41% of them are aware of other service charges.

SHGs: More than 75% SHGs are satisfied with savings and loaning and overall functioning of SHGs, Clusters and Federations. 68% SHGs are satisfied with the repayment. Around 80% find solidarity and leaders to be important aspects in the management of SHGs. 55% are satisfied with conflict

resolution mechanism of the Clusters. Only 32% and 50% SHGs are aware about audit and planning & budgeting activities. 45% are satisfied with livelihood activities. 55% have found the bank-linkages to be useful.

Federations: 100% Federations are either engaged in or satisfied with savings, loaning, audit, planning & budgeting activities. All of them are charging membership fee, loan processing fee and other service charges. All of them have expressed solidarity and leadership to be important aspects of the institutional management.

It can be inferred from the above that members and SHGs are more aware about the activities happening at their level. They are low on awareness of other activities, in which they do not have direct involvement or which are carried out by Clusters or Federations.

Activities: Apart from savings and credit related activities, the most dominant/broad-based activities in the SHG-Cluster-Federation institutional structure include agriculture (more than 50%), livestock


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and related (about 50%), home-based enterprises, and linkages with government and other schemes. Some activities in health, education, housing etc., are also taken up. Additionally, Clusters and Federations take up bank linkages and training. Federations also take up livelihoods and business promotion activities.

Future Plans: Responses across the institutions in indicating future plans include livelihoods activities (64%), increase in savings (46%) and capacity building (32%) by SHGs; increase in savings

(100%), capacity building (96%), making SHGs self-reliant (68%), livelihoods activities (64%) and improved bookkeeping and documentation (46%) by Clusters; and registration of Federations (71%), training and capacity building (43%), recovery of defaults (43%) and self-management (43%) by Federations.

Also, Federations want to take up livelihood activities (28%) and start more SHGs (28%). Federations

(43%), Clusters (96%) and SHGs (32%) want to take up capacity building including training programs and exposure visits.

33% Clusters are talking about reduction in interest on loans and building conducive environment for SHGs. Interestingly, 18% SHGs show interest in insurance activities and a similar number want to become self-reliant fully.

Perception of Members: According to members, SHGs have provided them a platform to save, avail loans at low rate of interest and liberate themselves from the hands of moneylenders. They also indicated an improvement in their self-confidence and personal image. Thus, members feel that SHGs have improved their financial and social status.

In a situation without SHGs, 84% members think that they would be forced to pay high interest on their borrowings and they would get trapped in the clutches of moneylenders (again).

In case, if SHG closes down, 71% members are confident to revive and keep the SHG alive and manage it themselves. 17% members responded that they would not let it happen. Overall 88% are highly confident to take it forward. Thus, SHG occupies an important place in the personal, emotional and social space of a member.

Discussions with Leaders and Staff: According to the leaders, the key benefits of Clusters and Federations include information on government schemes and best practices of other SHGs, bank linkages, transparency and awareness about SHG functioning and linkages with livelihoods opportunities. Their challenges include initial distrust in the institution of SHG and negative response

from some people, loan defaults, limited knowledge in maintaining records and managing SHG, external organizations and people who misguide members and limited support from the elders and family. Their suggestions for betterment of SHGs include - exposure and trainings, reduction in rate of interest, increase savings, taking more loans from increased savings and livelihoods activities.

According to the staff, they have benefited from new technology, trainings and improvements in their activities in delivering benefits to the SHG members. On the other hand, they think that they are facing problem due to lack of awareness, illiteracy of members, interference of other NGOs, changing situation and defaulting members in repaying. Their key suggestions include running awareness campaigns; transferring program ownership to the community completely; developing

local level volunteers and facilitators to support the institutions; and building mechanisms for ensuring members not to borrow more than required/the ability to repay.


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Case Studies: Case studies bring out that these institutions have led to increased savings; higher and timely loan; promotion of livelihood activities; granting of loans for buying assets; increase in income; capital formation; reduction in migration and vulnerability; more involvement of women in

decision making process; increase in solidarity in women; helping women in resolving their conflicts; and intervention in health and girl education.

Also, there have been a few cases of failure and conflicts in forming groups and among members,

because of which members have left the groups. These conflicts are in the nature of family disputes and poor relationship with leaders etc.

Costs and Business of the Federations: All the 12 Federations together have incurred Rs.280 per

member (or Rs.5080 per SHG) on an average, out of which the maximum expenses (71%) are incurred on honorariums. On an average, Rs.198 per member goes towards honorarium. All the Federations have disbursed a loan of Rs.7.37 Crore. Their total expenses come to 12.1% of the total loan. These federations have received Rs.79.6 lakh through membership fee, loan processing fee, stationery fee, interest from banks and service charges (40% of interest on own funds). Net deficit, therefore, is Rs.7.8 lakh. This deficit needs to be covered for achieving self-reliance. The options

include increase the interest surplus spread; increase the interest rate; interest spread from bank loans; surpluses from collective livelihoods and business activities; and increase the number of SHGs/SHG members serviced by them significantly.

With SRTT (and CmF) support, PEDO has reached out to more number of women in the same villages, expanded into new villages and built robust and sustainable community-managed microfinance institutional architecture in Dungarpur. It has also expanded beyond Dungarpur in a small way. Currently its outreach exceeds 32000 women in 500+ villages. Overall, the intervention has significantly impacted the members in terms of increased savings, increased access to credit, reduced interest rates, increased resource and asset base, increased access to facilities and

institutions, increased awareness, knowledge, skills and capacities, and reduced migration to a very limited extent. With changed mindset, improved health seeking behavior, increased stress on girl child education and improved women status/identity/recognition and decision-making, there are significant changes in their lives and livelihoods. They are now better equipped to handle/face the changing situations and tackle the external world including market(s). However, the need of the hour is to leverage this vibrant structure to enable them to enhance their livelihoods at collective level.

Way Forward

PEDO is a juncture where it can reflect on the way forward afresh. The reflection in 1988 had begun the community-managed microfinance institutional architecture. Similar reflection (shared visioning) exercise is called for now. The elements of the way forward are visible. But, these elements need to be discussed with all stakeholders and a shared understanding of the way forward needs to be established. Thus, the next phase has to distinctly cater to the articulated needs of the communities across the Circles/Blocks, building on the robust institutional architecture present. These include –

Organizing as many as poor as possible and quickly as possible in the existing locations, in the existing villages in these locations; all poor, vulnerable and marginalized (including anthyodaya

and BPL) need to be mobilized in a habitation/settlement/village, in a cluster, in a circle and in a district. [Seven Federation area has about 86000 households of which 72% are BPL and anthyodya; organized women are 18000 i.e.20%. There is still scope for organizing at least


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another 40%. This translates at the district level into another 50000-60000 women. This should be the focus.]

Institutionally, all the basic three tiers are moving towards being self-managed and self-reliant as

far as savings and credit are concerned. However, there is a need to fine-tune the self-sustenance of the Federations in terms of registration of federations, increased savings into federations (may be special savings), taking up collective activities so that surpluses off-set some of the core costs, mobilizing more members into insurance and mutuals, becoming banking correspondents, ensuring all the SHG corpus/savings is invested fully and profitably, etc.. Since the Federations are becoming robust, they could come together as the fourth tier community

institution at the district level. Some of the activities can be taken up at the level of the fourth tier. Further, PEDO’s microfinance staff could be fully subsumed in this, along with the tasks and responsibilities.

There is a need to increase savings by members (including those who are members but not saving at present), through regular savings, special savings and various other savings products. Also, loan products need to be expanded. These may include - o Post-harvest or otherwise lump sum deposits; weekly recurring deposits (linked to market); o Special housing loans; special education loans; skill development loans; food/kind loans; kind

recovery loans; specially designed emergency needs (without waiting for a monthly meeting); working capital loans etc.

Federations may also source bulk loans for onward lending to SHGs.

However, there is scope to initiate and universalize insurance and health. This needs to be done at the scale of the fourth tier (district federation) to meet the range of insurance (livestock, asset,

crop and loan insurances) and health needs. Given the scale of mobilization, comprehensive sustainable community-managed insurance model and community-managed healthcare model are possible. They need to be explored and adopted. Also, self-managed Federations can initiate and/or scale up activities for improving quality of life like housing, etc.

Most significant need articulated is to support/take up livelihoods and business activities at individual and collective level, beyond the current level of individual activities. This would mean - o The families need to be provided long-term significant livelihoods support in a comprehensive

manner so that they plug the gaps in their existing livelihoods, build backward and forward linkages, tap new opportunities that get added as elements in their value-chains and add new livelihoods in their portfolio. They need skill development.

o Collectivization around existing livelihoods activities/practices tend to increase productivity and proportion of consumer rupee in the hands of the producer/service provider.

o Scope for collective purchases, processing and marketing exists. o Need for 2-3 simultaneous loans (livelihoods, education, consumption, health, emergency etc.)

arises. It is possible to offer credit limit to members. o Thus, member-level plans, group-level plans, cluster-level plans, federation-level plans and district

level plans need to be facilitated in a participatory manner, using LEAP (livelihoods enhancement action plan) tools and Micro-credit Plan tools and they need to be supported.

o Sustainable agriculture, dairy and livestock, and Non-pesticide Management practices have to be taken to farmer members, sustainable NTFP harvesting practices and sustainable natural and common property resource management have to be taken to tribal communities. Farming system approach needs to be pursued.

o All the organized women need to be encouraged to form activity-based groups/collectives, in addition. Apart from the work within the SHG-Cluster-Federation-District Federation structure, It


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is possible to visualize a producers’ company/collective at the district level for catering to members’ multiple needs, products and services.

o Of course, livelihoods work requires some grants as revolving funds/seed capital to supplement members’ funds to leverage bank linkages. Further, the members, being members of SHGs/Federations have to draw loans to finance the livelihoods collective action. The funds are required for acquiring resources, assets, livestock, raw materials, etc., advance for purchase of produce on harvesting, working capital, etc., to the activity groups, apart from higher-tier institutions’ direct collective activities.

o Also, there is a need to map skills required with demand for employment and business and train interested young men and women after counseling with suitable options for job placement, self-employment and enterprise development. There is a need to handhold them in these processes.

It can be presumed that skills, training and professional capacities are the only grants. All other costs would come as loans only.

As elsewhere in the country, large scale programs like NRLM, MGNREGS, Mega watersheds, employment generation and entrepreneurship development are working/likely to work soon in Dungarpur and with Institutions of the Poor. There is a need to partner and work with them.

There is a need to offer capacities to the staff and leaders in livelihoods, business and collective action activities, apart from self-management and institution management. Currently, since their work itself is limited in the collective arena, they need to begin acquiring knowledge, insights and capacities starting with the understanding livelihoods concept, principles, framework and institutional processes. They also need to be exposed to value-chain and subsector analysis.. Further, they need to map the clusters for livelihoods work/products/services and dig deeper to

appreciate the gaps and opportunities. All said and done, ongoing knowledge and technical support and handholding (from outside) may be needed across different livelihoods subsectors to address the current gaps and tap opportunities. Livelihoods work would also mean risks and partnerships with various business players. There will be needs of the working capital and SHGs and Federations may not risk easily. This may mean alternative institutional form, like a

company of the producers’ company(ies) so that equity and loans could be attracted. Some of the value-chain gaps are amenable to individual enterprises. This effort is long-term and intense.

This may mean an intense shared visioning for PEDO along with the community institutions towards getting on to collective livelihoods agenda, as a first step before going forward.

Thus, this way forward is an intense and long-term effort for the coming 6-9 years. This would mean cost requirement of Rs.1.0 Crore for a Circle of 3000 women, and 50% of it to come from

the community. Donor support would be a mere Rs.3000 per member. If we add, another Rs.2000 as grant for revolving fund/seed capital, the donor investment would be Rs.5000/member. It is possible to mobilize similar amount from other partners in government or outside. MGNREGS is already there. NRLM - National Rural Livelihoods Mission - is on its way. These partnerships have to be nurtured and cannot be neglected.

Finally

PEDO’s extraordinary work with tribal communities is sheer hard work over more than two decades. The robust microfinance institutional architecture so emerged needs to build further on this foundation and transform itself to get hooked on to a comprehensive livelihoods agenda, along with savings, credit, insurance, health and education. Of course, the staff need to pace up with the growing aspirations of the organized communities. Towards this, there is a need to front-end a reflection for way forward for meeting the multiple needs of the members.


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Annexures


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Annexure 1: 25 Case Studies

SHGs and their activities have made a big difference in the lives of the members and their families. Based on the livelihoods Clustering, the efforts of SHGs and their Federations provided credit plus services to the members with inputs and insights from outside including PEDO. The following case studies capture these efforts and their impact at the ground level.

1. Kanta’s continued association with Self-help Groups

Kanta’s husband died due to Tuberculosis. That was the beginning of her woes. Her youngest daughter who was just 2 years old died few days after that. To add to her worries was her alcohol addict brother-in-law. Fear of harassment forced Kanta to leave her house and move back to her father’s place. 15 days after her husband died, she along with her daughter Nirma and son Kamla moved to Kanta’s father‘s residence. Life was never this tough for Kanta. She used to be very enthusiastic woman. Inspired by the PEDO field officers and Federation CRPs, Kanta became a member of “Dandorphala Pratham Roeda” group. She had joined the group on 24 May, 2006 because she was motivated to save and maximize her benefits. After the unfortunate turn of events, Kanta could no longer continue to be part of this group. Now, she lives 7 km away from her original place of residence making it almost impossible for her to attend weekly meetings of this group. Moreover, she was cash strapped forcing her to withdraw all her savings from the group and leave. To top it all, she was not keeping well as she was not in the best of her spirits after the loss of her near and dear. On 23 September, 2010 Kanta finally withdrew her membership.

Today, Kanta works as a daily wage laborer and attends to household chores too. She cannot forget the days when she was active in her group and was motivated to make her and her family’s life better. She wants people in her locality to know about the benefits of being a member of a SHG. Today, she is mobilizing people to form groups.

2. Trust in one’s own group

In 2007 Basu took a loan of Rs.1000 to finance the education of her children. She has been a member of “Damorphala Pratham Dhangaon” since June 2006 but till date has availed only one loan from her group. It is hard to believe that a woman like Kanta who is an office-bearer in the group could manage to take only one loan from the group she has been associated with the past 5 years! In reality Basu could have asked for more credit from the group but she does not see the point in borrowing without a reason and paying interest for that. Initially, Basu had been apprehensive about depositing money with her group “Damorphala First Dhangaon”.

The initial hesitation began fading when she became familiar with the systems of the group. Later she realized that all the money belongs to the group members and stays within them so there is no reason to be worried about the security. A peek into Basu’s family reveals that they have been doing well from the very beginning. She, her husband along with their children is involved in agriculture and in construction maintenance work of buildings. They have a well of their own, the water from which is used for household activities and irrigation. Both Basu and her husband are educated. Their eldest daughter discontinued her education after Class 5 but rest of their children are enrolled in school. The question arises that why a woman like Basu who is doing great in life and is not in need of immediate credit wants to continue to be a member of “Damorphala First Dhangaon”. Basu reveals that she might not be borrowing money from the group but she does get interest on her savings which is higher than what she could have got from banks. Also, as an office-bearer she gets lot of respect from people. This means a lot to her. Furthermore, anytime Basu needs credit she can always take it from her group. In fact, soon she wants to buy buffaloes as an additional source of income. Moreover, her daughter’s marriage is on cards. She believes that a group’s function does not end with saving and credit. It is the overall welfare of people that has benefitted.


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3. Discovering the entrepreneur in Leela

Had it not been the “Pargiphala” group, Leela’s jewellery would still be kept as mortgage against a loan she had taken years back. This was the only occasion when Leela took credit from her group “Pargiphala”. She has been a member of this group since August, 2006. There has been two other occasions, where she wanted to take loan but she withdrew her request as other members were more in need of the SHG money. So till date Leela has taken only one loan from her group! Leela does not see saving and credit as the only functions of a group. She feels that the presence of groups has created strong affinity within the community and has inculcated a feeling of mutual trust. There was a time when private companies fled with peoples’ deposits.

Compared to those companies, she finds SHGs a much safer avenue for saving. Also members can avail loans through their group from banks if there is a requirement. With growing self-respect and confidence, some members of the group including Leela, want to set up their own shop. Presently, main source of livelihood for Leela’s family is agriculture and livestock. She is involved in household chores, NREGA, agriculture and livestock. Her husband works as a driver in Gujarat. Leela and her group members intend to become entrepreneurs as it will be a more profitable venture.

4. Unshaken faith

Savita knew about SHGs before she got married and moved to her husband’s house. She has closely seen the benefits of being associated with SHGs. So much so that she will not let bitter experiences shake her faith in the institution. Savita lives in Kesarpura village of Dundarpur. Her husband stays in Gujarat but she lives with her two sons and one daughter. She has been a member of “Damorphala Second” since July, 2006. Once her daughter worked for the President of the group and was not paid for the services. Rs.200 was supposed to be given as wages to the girl. Savita demanded that this money should be handed over in cash or should be adjusted against the outstanding loan amount that was reflected in her ledger. The President did none. Moreover, the President was not making regular deposit of SHG savings in the banks. Ultimately out of frustration Savita left the SHG after withdrawing all her savings in August, 2009. As it is Savita’s family’s financial condition is very grim. Savita’s husband is the only earning member of the family. He is involved in NREGA in Gujarat and works as a daily wage laborer and works in agricultural fields too. After withdrawing her membership, Savita is involved in NREGA along with her household chores. She still believes in the institution of Self-help Groups. Savita is determined that she will not let one bitter experience to shaken her determination. Now she is mentally prepared to join another group and will do so when she feels the time is right.

5. Amri’s story

Amri, wife of Shri Hurma Damor lived in Kankradara village of Dungurpur district. Due to low fertility of land the agricultural productivity was low due to which the household income was low. Expenditure on social events such as marriage, birth, death customs and rituals were high. So the debt burden on the family was a regular phenomenon. There was a SHG in Kankradara village. On April 4, 2004, Amri joined the group when one of the members of that SHG left. She started with a monthly savings of Rs.50. When she saw her saving amount increasing, she was highly motivated. Thereafter she increased her monthly savings to Rs.100 per month. Currently she has made savings of Rs.6722. Besides savings, there were other ways of improving one’s family life. Amri realized this when her interaction with other members increased. On January 6, 2006 she took a loan amount of Rs.5000 to set up a shop. Second loan amount of Rs.15,000 was availed to install a flour mill. Subsequently she took loans for well deepening, to expend her shop, for stock purchase and for renovating her house. In total Amri has availed loans worth Rs.88,000. The family earns Rs.400 per day from the flour mill. Better irrigation has enabled cultivation of wheat and vegetables. Amri has received training on vegetable cultivation, SHG functioning, credit planning and livelihood. She is


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confident and capable to do bank work and actively participates in PRI related work. She has constructed bathroom at her own house and also motivate others to construct bathroom. Amri has found prestige in her family and community.

Amri plans to make further investment in agriculture by buying a diesel pump set. She wants to construct a new house for the family also. Moreover, she is determined to increase her monthly savings with the intention that members will not depend on external sources for their credit needs. Inter loaning will ensure that the interest earned will remain with the members.

6. SHG transforms life

Smt. Sabita Ben lives in Simlabada Marg which is 5 km away of Kankradara Gram Panchayat of Kankradara Block of Dungurpur district. On August 11, 2005, she joined a Self-help Group in her village. Initially the members made a saving of Rs.50 per month. Later when the importance of savings was realized by all, this amount was increased to Rs.100 per month. Today, Sabita Ben has total saving of Rs.5856. Sabita Ben received various trainings. Some of them are leaders’ orientation training, camp on SHG functioning, training on Credit Planning, training on Institutions arrangement and Cluster management training. The first loan taken by Sabita Ben was meant for purchasing a house. The subsequent loans were taken for income generating activities. Loan of Rs.10,000 was taken for buying a buffalo. The buffalo gave 4 liters of milk for the next 10 months and Sabita Ben earned a total Rs.9600 by selling some of this milk. The ghee produced from the milk has earned her Rs.2000 for 5 kilograms. She sold organic manure for Rs.2000 a tractor. Thus her total income from the buffalo was Rs.13,600 over a period of 10 months. Rs.10,000 was availed for deepening of well.

She cultivated the following fruits/vegetables:

# Fruits/Vegetables Sale (Rs.) 1 Onion 3000 2 Lady’s finger 1000 3 Beans 1000 4 Ginger 3000 5 Fruits 5000

Sabita Ben and her family got engaged in livestock based livelihood activities also. She bought 1 buffalo, 1 goat and 4bulls. Milk, milk products and manure is sold. She does not put chemical fertilizer in her agriculture land and instead uses organic manure. So the family is living more healthy life. The agriculture produce is sufficient for the family and rest is sold. Sabita Ben was leaving an unhappy married life with her husband. Through the SHG intervention she started savings, initiated some livelihood activities. She was motivated by the SHG and she received various trainings and got the encouragement from those trainings and initiatives. She plans to construct a new house and undertake land leveling for vegetable, turmeric and chili production.

7. Vali Ben of Manipur village

Vali Sankarlal Ahari lives in Manipur village of Dungurpur District of Rajasthan. In this region, agriculture is monsoon based. Only maize, urad and tuar can be cultivated in such rain fed farms. Due to the seasonal nature of work, most people of this region migrate to Gujarat in

Search of alternate livelihood opportunities. In 1998, PEDO facilitated the formation of Self-help Group in Manipur village. Vali Ahari joined this SHG. The members began with a monthly saving of Rs.20. This later increased to Rs.30 then Rs.50 and now it is Rs.100. The SHG organized various trainings for capacity building of the members. PEDO, organized leaders’ orientation, training on SHG functioning and credit planning. Vali Ahari visited Madhya Pradesh for understanding chili and vegetable cultivation practiced in the area. Later Vali was elected the president of her group. Moreover, in 2000 she was elected the ward member. Vali’s first loan was taken to start a small


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stationary shop in her village. Subsequently she took loans for preparing agriculture land, for boring and for constructing a new house. Till date she has availed 9 loans worth Rs.1, 12,000. Had Vali taken this amount from moneylender she would have paid Rs.30-35,000 as interest vis-à-vis Rs.6,460 that she paid to her SHG as interest. So she has saved a total of Rs.20-25,000! Currently her total saving is Rs.8767. Manipur village and the lifestyle of villagers have changed a lot over the years. Just 8-10 years before the remote village had no metal roads. Vali used to live in a small kaccha house with six family members. Today her family lives in a well constructed house. As she was trained in agriculture, Vali has successfully been able to increase maize production up to 5 times. She has even started cultivating wheat, saunf, sugarcane and vegetables. Buffaloes have been purchased for milk production in order to supplement her household income. She also planted horticulture plant. In future, Vali wants to get technical knowledge on agriculture production and vegetable cultivation.

8. Journey of a village woman

Vimla Devi Katara belongs to Nanoda village situated in the tribal area of Bahulay District. In 2001, PEDO organized the women of this village into a Self-help Group. Vimla Devi was an enthusiast member who was discouraged by her mother-in-law to participate in the SHG monthly meetings. However, her husband was very supportive and due to his encouragement, she could become the President of her Federation. Along with her discharging her duties as the President, she assisted the treasurer of her SHG. Vimla Devi worked in the areas of credit and savings, health, agriculture based livelihood activities, livestock based livelihood activities, bank linkage and women empowerment. She attended several training programs organized by PEDO and went for exposure visits to Udaipur, Jaipur, Ahmadabad, Madurai, Hyderabad and Madhya Pradesh. Her Federation assisted SHGs and the members. It promoted new SHGs also. A total of 5 SHGs were formed by the Federation. Vimla Devi was made the Vice-President of “Infos” which is a Federation of Federations. This body supports groups in saving and credit functions. It provides assistance in establishing bank linkages and other support activities.

On May 5, 2007 Shri Manikyalal Verma with support from PEDO, organized a workshop on bank linkage for financial inclusion. This workshop was attended by 18 NGOs, bank officials and Federation members. Vimla Devi raised all issues related to SHG bank linkages and discussed it with the participants. The workshop was a platform for open discussion of SHG bank linkage problems and proved to be highly informative for Federation members, NGOs and bank officials also. Similar national level programs have been organized for the benefit of Federation members. Vimla Devi might not have succeeded in securing grades in school neither did she take up conventional career paths but today she is the Vice-President of a National Level Network. She has actively participated in training programs and went for exposure visits. Vimla Devi has strong subject knowledge, leadership qualities and the willingness to contribute to the lives of people. She motivates, guides and advices women for improving their lives.

Vimla Devi and her family has benefitted after Vimla Devi joined her SHG. They undertook the cultivation of wheat, maize, rice and til seeds. This was sold for a total of Rs.9,000/-. The vegetables grown such as tomato, brinjal, okra, turmeric, chilies etc. were sold for a total of Rs.56,300/-. Selling buffalo’s milk helps earn Rs.20-25,000/- per annum. These commodities are for household consumption also. Presently they do not have to buy food grains from market. The 4 loans availed from the group till now has been invested in seeds, manure, vegetable production, badi production and tractor for agriculture. Vimla Devi intends to promote cultivation of food grains, vegetables, turmeric and chilly in her area.

9. Basanti and Balwant’s story

Basanti and Balwant belong to Charwada village of Dundarpur District. After their marriage they were asked to move out of their parents’ house and live all by themselves. Starting a family with just


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Rs.45 in hand was not an easy task. They used Rs.21 for preparing the boundary wall of their house. The couple decided to buy food items and sell it to the school children and staff of a school next to their house. This way they could start earning some money to run their household. They borrowed Rs.200 from one of the school teacher Shri Leelashankar. With this money they bought biscuits. After successfully selling the commodity, they returned the money along with an interest of Rs.10. Next, they borrowed Rs.2000 and returned the amount with an interest of Rs.1000. Thereafter Rs.3000 was borrowed and a total of Rs.4000 was returned. So Basanti and Balwant were taking loans at 10% and a bulk of their earnings, from selling goods, was paid as interest for the loan amount. It was getting harder for the couple for managing their household. Seeta of PEDO organized women of Charwada village into a Self-help Group. Basanti joined this group.

The members started making monthly savings of Rs.20 which was then increased to Rs.50. Currently the monthly saving amount is Rs.100. Basanti’s involvement with her SHG has helped inculcate the habit of regular savings. She is aware of bank facilities and has been able to assist her husband in enhancing the household income. The group has made available loans at low interest rate which was invested in income generating activities. Moreover, the group has conducted trainings on agriculture based livelihood practices, health & hygiene. Basanti has found position in her family and her village. Basanti prepares food in the school that is next to their house which helps her earn Rs.1000 per month. Also, the couple grows onions, tomato, green vegetables etc. for the family’s consumption using organic manure produced at home. Her husband manages the shop and atta chakki. He repairs hand pumps and works at an automobile garage too. He makes an earning of Rs.18,466 per month.

Basanti and Balwant plan to avail loans from the group to buy an auto for commercial use. They intend to expand their shop and start cultivating cash crops. Moreover, Balwant wants to buy a compressor machine which will be used in repairing punctured tyres and an interlock machine for irrigation. Till date the Basanti has taken loan of amount Rs.70,500 of which the outstanding amount is Rs.13,000. Basanti and Balwant’s life has been a tough journey till now. They started their life with just Rs.45 with them and today they have been able to successfully manage their family. Moreover, both have aspirations to do better in life. Their children are studying and Basanti wants them to pursue higher education.

10. Prosperity through SHG

Resham Devi’s story begins 28 years back when she married Rewa Bhai of Jhalap village. After three years of marriage the family got divided and the couple was forced to move out of the comfortable house they were living in. They started staying in a hut for the next 4-5 years. Rewa Bhai worked for a landlord who agreed to lend Rewa Bhai Rs.5000 for constructing a kaccha house. But just constructing a house was not enough for improving their lives. Their economic condition was still precarious. Rewa Bhai had health problems due to which expenditure of the family shot up and their two children could not study beyond primary level of school. Soon they established a small shop where items like biscuits were sold. Next they installed a flour mill within this shop. Rewa Devi wanted to expand this business but could not as she needed funds to do so. Loans were available at exorbitant rate of 5-10% per month and it required mortgaging one’s ornaments! She had the option of taking loan form a landlord but for that she would have had to work for him leaving behind her shop. The year 2006 is very significant for Rewa Devi. This is the year she joined an SHG promoted by PEDO. She started as a member saving Rs.50 every month. Later she became the president and was given training to take up responsibilities of a President. She also encouraged her daughter in law to join the SHG. Both started availing loans from the group to improve the condition of their family. It is due to the SHG that Rewa Devi has been able to expand her business. Today, one can find a variety of items in her shop. It has goods according to the season and according to the demands of her customers. The shop also supplies item like food grain and cooking oil for marriages.


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The shop and the flour mill together have a sale of Rs.1000-1200 per day. Her family is also involved in agriculture based livelihood. Today their family has their own shop, flour mill, and machine for processing rice, buffaloes, diesel pump, 2 Tula of gold and 60 Yula Silver. Rewa Devi attributes her achievements to SHG which brought a change in her family and their life. Now the membership of the group has increased to 20 persons from the initial 13 persons. The SHG encourages agriculture based and livestock based livelihood activities. In future she plans to construct two shops for her sons to manage. Also, she wants to get involved in livestock based livelihood activities.

11. Kanku Ben: An inspiration for others

At the time when SHGs were seen as agencies for conversion of people’s religion, Kanku Ben courageously joined a SHG promoted by PEDO. She was threatened of dire consequences if she did not change her decision but Kanku Ben was determined to do what she believed in. Kanku Ben started monthly savings and in due course of time took a loan amounts as small as Rs.100 to as big as Rs.20,000. She utilized money for education of her children, for purchasing a buffalo, for acquiring 11/4 Bigha of land and for investing in silver.

Kanku Ben started as a member of her SHG but later became the president. She has visited NGOs in Madhya Pradesh, Gujarat, and southern regions of India. This was to broaden her horizon and to get exposure to the works of other organizations. As president and active member of the society, she motivates women who default loan repayment to become regular in their payment. She is actively involved in empowerment of women. She does not falter in raising her voice against injustice. For instance Kanku Ben once informed the police about a victim of domestic violence and helped the victim to escape atrocities of her husband. Kanku Ben has even brought to light the malpractices in NGREGA work. She is politically active also.

She contested for elections at the Gram Panchayat level but lost by a narrow margin. Kanku Ben joined her group at that time society was highly male dominated and women were confined to their houses. They were not involved in decision making process. Girls were denied education due to poor economic condition of families. Today Kanku Ben is glad that she fought against all odds and joined her group. In her view, being a part of SHG has given her self confidence and thus enquired courage to take own decisions. It has helped her realize the importance of saving and has enabled her to stop depending on the moneylenders. Moreover, she is now aware of government welfare schemes and programs and how to avail them. Overall she thinks that her group has given her an identity and a chance to improve lives of others along with her own.

In future she wants to improve irrigation for better agriculture activities by laying down pipelines and digging a well. Furthermore, she wants to construct pucca house for her family. Kanku Ben plans to encourage more women to become a part of SHGs and move forward in life.

12. Alku Devi: Woman of great fortitude

Alku Devi was born to a poor family of Mayala village of Dungurpur district. She is physically challenged. Right from her childhood she had to face a lot of hardships due to her disabilities. Being a handicap is such a stigma in the society that there was not a single suitor who would marry her. Alku Devi took charge of her life by deciding to become a member of a group promoted by PEDO. There was a lot of resistance from other members but finally she was allowed to join.

She started monthly saving of Rs.25 and was an active participant in training programs organized for the group. It was after one such training program that she decided to set up her own shop for generating income. After a lot of persuasion, she got a loan of Rs.1000 from her group. This money was used to buy goods for her shop. Soon she repaid the loan amount and this time got bigger loan amount. Today, Alku Devi has a monthly income of Rs.2000-2500. Now she has expanded her shop size and has a house of her own.


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Moreover, Alku Devi has witnessed a remarkable change in the attitude of people around her. She has a say in all family decisions. Her self determination and success has made people respect her and her achievements. Her future plan is to involve members in dairy based livelihood activities. She also feels that members should be linked to welfare schemes of the government and is determined to work towards that.

13. Confidence and way to move out from clutches of Moneylenders

Gadda Bateshwar village is 30 km from district headquarters of Dungurpur. Most of the people of this village mortgaged their land and gold for availing loans from moneylenders. In the year 2002-03 PEDO encouraged the people to form SHGs. After 4 rounds of meetings with the village community, 20 women came forward to form a group. Babli Ben was one of those 20 women. The SHG members fought a difficult battle against the moneylenders to get back control over their lands. Babli Ben has been an active member of her group. She also participated in Training programs conducted for the group. This has made her more aware on issues concerning livelihood and development issues. After one such training program, she was motivated to take up agriculture based livelihood activities. Babli Ben started cultivation of vegetables after installing a motor. She now grows wheat, maize and gram. Furthermore, she has been able to invest in the education of her children. She could manage to send one of her sons to Kuwait for better employment opportunities. She got her daughter married too.

After becoming ward member, Babli Ben has taken up work for community welfare. She got a hand pump installed for the villagers benefit. She has even helped 50 families in preparation of agricultural land by leveling the fields. She wants to continue her work for the benefit of her villagers and for her family. She plans to undertake village development by linking her village with Gram Panchayat Schemes. At the domestic front, she wants to construct houses for her sons to live in and shops for selling commodities.

14. Development of self and Society

Lila got married to Babulal Damor of Mandali village in Dungurpur. She was barely 16 years of age when she had to start her own family. Lila could not continue her education due to her marriage. She is educated till intermediate level of school. She has a son and a daughter but Lila has not limited her world to her family; she has an identity of her own. Lila by nature has always been shy. She did not like interacting with people outside her family. Moreover, her world was limited to her house. A lot changed when Lila joined PEDO promoted SHG in her village. Lila has evolved from the shy young lady to a confident leader. She joined her group as a member but later she was elected the Treasurer of the group. Trainings on leadership quality have brought about a marked change in her personality. She is very active in her group and her work is recognized and appreciated by members. At the Cluster level, she is the Secretary. This Cluster comprises of 20 SHGs. Lila’s economic condition has improved a lot due to regular savings and due to the easy availability of loans on time. Till date she has taken 5 loans of total amount Rs.29,500 from her group. Lila has successfully set up her own shop. Also, she has invested in agriculture for better crop productivity. Economic benefits have been tremendous. She has been able to support the marriage of her sister-in- laws. Lila has invested in 2 Tula of gold also.

Lila wants to make people aware of the benefits of SHGs in supporting the growth and wellbeing of one’s family. She encourages women to form groups. Lila has been an enthusiastic and a fast learner. Not only does she take part in capacity building and training programs but shares all her learning with other members. After attending a program on Child Education and Rights (organized by UNICEF), she shared her experience with 500 women. Lila has been part of various exposure visits to Kerala, Tamil Nadu, Pondicherry, Madhya Pradesh and Jaipur. This has helped her to understand agriculture and animal husbandry practices of other regions.


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15. Farm to market

PEDO has linked members of SHGs to livelihood activities. It has worked with members to strengthen existing livelihoods and for linking with alternative livelihoods for additional income. PEDO gives inputs for enhancing vegetable production, undertaking dairy activities, establishing kirana shops etc. These activities have been carried out with support of SRTT. For success of these livelihood interventions PEDO has facilitated trainings and exposure visits for SHG members.

In 2009 Under the Sunehra kal mission of ITC, members were provided ITC commodities for their kirana shops. 600 members were identified who would stock ITC products in their shops. Stock is otherwise purchased from distributors. Direct linkage with ITC eliminates middle men hence maximizing the profits realized by the members. This program covered chili production also. The chilly was used for consumption in households and rest was sold. Vimla Ben of Ghambola village sold green chilies worth Rs.2,550 and dry chilies worth Rs.800. In 2010-11, turmeric production was taken up by members. Turmeric has medicinal properties and poses no health hazards to the people cultivating or processing it. Moreover, India contributes 90% of world turmeric production. Dungurpur is known for good turmeric production. PEDO linked 334 families belonging to 34 villages with turmeric cultivation. 5934 kilograms of turmeric rhizomes were planted in an area of 3.25 hectares. The total production of turmeric was 32,592 kilograms of which 10,609.50 kilograms were of commercial variety and 2,781.75 kilogram of local variety. The commercial variety was sold at Rs.32 per kilogram fetching a total of Rs.3, 39,504. The other variety fetched Rs.89,016.

Under the Sunehra kal mission of ITC, 7 tones of Erode variety turmeric seeds and 495 Kg from Udaipur were made available to 334 members of 34 villages. Ramila Ben of Jalukua sowed 135 kg of Turmeric and got 950 kg of produce and its sell she earned Rs.2,552. Mani Ben of Rampur village sowed 50 kg seed of turmeric and got total final produce 540 kg and sold 424 kg and earned Rs.13,568. Turmeric production has benefitted the cultivators tremendously. There have been several successful cases. Ramila Ben of Jalukua used 135 kilograms of rhizomes which gave a produce of 950 kilograms of turmeric. She allocated 150 kilograms for next crop and 798.50 kilograms was sold at Rs.32 per kilogram which fetched her Rs.25,552. Mani Ben of Rampur village took 50 kilogram of turmeric rhizomes. There was a total production of 540 kilograms of which 100 kilograms has been allocated for next crop and rest 424 kilogram was sold for a total of Rs.13,568.

PEDO has demonstrated processing of turmeric too. The organization purchased 13,391.25 kilograms of turmeric. Processing of turmeric involves washing, boiling, drying, polishing, grinding and packing. After washing turmeric it is boiled in batches of 50 kilograms for 40-60 minutes. It is removed from fire once bubbles start appearing in the water. To enhance the color of turmeric, edible soda powder is added and it is dried for 10-15 days. Polishing is done in machine in batches of 10-15 kilograms. This process takes 1 hour for 1 batch of turmeric to be ready. Next is grinding for which grinding machine for spices are used. The ground turmeric is packed in jars of 250 grams, 500 grams or 1 kilogram. The ratio of unprocessed turmeric to processed turmeric powder is 4.75:1. So in 2010-11, 620 kilogram of turmeric powder was made. With this successful demonstration, PEDO plans to link members with this livelihood activity for enhanced household income.

16. From a member to Activist

Manjula came to Himmatpur village after her marriage to Kantilal. A year after that, she joined a SHG promoted by PEDO. She availed 2 loans of amount Rs.5,000 and Rs.10,000. She utilized this money to recover her mortgaged land and for deepening of well. The deepening of well augmented her income by increasing productivity from agriculture. This amount was utilized to repay old debts. She has bought a motorbike, some gold ornaments and got electricity connection to her house. As a member of her SHG, she received capacity building trainings. These trainings helped her undertake


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the work of a treasurer in her group. She successfully persuaded the members to increase the monthly saving amount to Rs.20. She has benefitted a lot after joining her group.

In the year 2000, there was unexpected turn of events. Manjula’s husband completely gave in to his habit of drinking. He used to drink all day and did not work. Manjula lost all hopes from him and finally went back to her parents’ house. That is when the member of her SHG felt that there was a need for intervention to save Manjula’s family from breaking apart. They made Kantilal understand the ill effects of liquor. After a lot of persuasion, he quit drinking. Next, they convinced Manjula that her husband was a changed man and that she must go back to him.

After 6 months Manjula came back to her village and her family. The couple started working together as a team in Manjula’s SHG. They received trainings on managing Clusters. Today both are in charge of 2 separate Clusters. She tells people, unity is strength, alone nobody can progress in life. She gives her instance of how her family would not have been together if it was not for her group members. Manjula persuades all women to come together and improve each others’ lives. Even though Manjula has attended school till class 10th only, she knows the importance of education. Her children are studying in private schools and she wants them to pursue higher education also. Manjula plans to investment in agriculture for further enhancing her household income.

17. From Group to Dairy

Under the Pahal program, PEDO linked members with livelihood activities. Dairy was one of the focus areas in this program. In Bichhiwara block dairy activities were promoted. SHG members began supplying milk to the Mewar dairy. However this initiative could not be sustained due to the high transportation costs involved.

In 1996, PEDO organized women belonging to various villages into groups. In these groups, various livelihood activities were carried out such as agriculture, livestock and petty business. Till 2005, members received capacity building trainings for an array of livelihood activities. Further, under SGSY, Murrah breed of buffaloes were purchased by the members. In 2007, members were linked to a dairy at the district level. Since members felt that the prices offered were not competitive, members decided to stop this operation. These members supplied milk to this dairy for 2 months only. As an alternative, Sanbhar Dairy of Gujarat was approached. 50 families belonging to 8 villages have been linked to this dairy. Currently these villages supply 180-200 liters of milk daily to the dairy.

To manage dairy activities, a committee of seven members was formed. These members represented different villages. Mani Devi heading this committee. She has visited Udaipur and Banswara to learn about best dairy practices in this livelihood activity. Rooplal Katara, husband of Mani Devi records financial transactions of the committee. He maintains purchase register and payment register. The purchase register has records of the customers’ name, quantity of milk sold, fat content etc. Similarly the payment register has records of dairy number, name of the customer etc. Currently, milk worth Rs.8-10 lakhs is annually supplied to the dairy. In the last two years the beneficiaries have got bonus amount of Rs.1.29 and 2.57 lakhs respectively. Milk price per liter has increased from Rs.23 to 25. They earn Rs.250 per member from another activity though they are able to bear the cost of transportation, stationery, and other labor charge.

18. Story of helpless Dalu

Dalu’s husband passed away at an early age. After the death, she & her son were helpless. Unable to deal with the trauma, they moved into Dalu’s parents’ house for a few days. Soon Dalu found herself engaged in household chores and in animal husbandry. She used to alternate time between her parents and her in-laws. This arrangement was not accepted by her in-laws. They started troubling her so that Dalu stays with her parents. Dalu’s mother increasing got worried about her daughter who had now become a victim of domestic violence. She discussed the problem with the members


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of her SHG. The members decided to lodge a complaint in police station against the atrocities committed on Dalu. When police did not cooperate in the matter, they decided to take matters in their hands. The members went ahead and brought Dalu back to her parents’ house. The matter did not end at that. Greedy father in law of Dalu came to take possession of Dalu’s assets. His attempt was unsuccessful. The members did their best to protect Dalu and to make her father in-law realize his mistake. Today, Dalu is a free woman. She is not harassed by her in-laws. It was due to her mother’s SHG that she is leading a happy life. After the turmoil in her life, Dalu was motivated to join a SHG. In order to be linked to a livelihood activity, through her SHG she was trained in repairing hand pumps. She now works as hand pump operator. She has a total saving of Rs.20,000. Moreover, Dalu has availed loans from her group for construction of her house and for installing a flour mill. She now commands respects from all quarters.

19. SHG: Justice assured

Hukli belongs to Khajuri village of Dungurpur district. After the death of her husband, came the episode when she was at the mercy of her father-in-law and her brother-in-law. She was badly harassed by them. They were trying their best to scare her so that she moves out and leaves behind her property. The level of atrocities reached its maximum when they tried to burn her! Hukli lodged a complaint against them in the nearby police station but no action was taken. It seemed that there would be no end to Hukli’s miseries. It was at a Cluster meeting that Hukli was advised to approach SHG members for help. She had her apprehensions in doing so. Hukli could not understand how to approach them and why would they agree to help her. Since Hukli had no choice she decided to go ahead and try her luck. She narrated her story to the members who in turn offered her support and assurance for justice. Soon the members formed a committee and visited Hukli’s in-laws. They were told to stop harassing Hukli. The members were shouted back at and were asked to stay out of family matters. The members simply told Hukli’s in-laws that if they do not mend their ways, soon all 400 women of the SHG Cluster would camp at their residence. Later Hukli’s father-in-law was called for a meeting to which he refused to attend. However, he send a word that he will no longer harass Hukli. Such is the power of persuasion! Hukli’s father-in-law has given in writing that he will give her the property and assets that she rightly deserves. Women collectively achieved what police administration could not. Today Hukli is leading a life of dignity. She has joined a SHG.

20. Help in the need of crisis

The people of Mada village of Damorphala Block will never forget those 2 fateful days of January 2011. Hooligans from an adjacent village poured kerosene over 14 houses and completely burned them down! Nothing survived the fire; the houses were reduced to char. People lost their houses, food grain and a life time of assets. In this hour of need PEDO came forward to help the people survive this nightmare. The victims were given fuel, food grain, spices, vegetables and other food items. Fodder for animals and clothes were also distributed. Moreover Rs.1000 was extended to the affected families for reconstruction of their houses. The victims who had been members of SHGs received banks loans for coping with this mishap. A total of Rs.4 lakhs was borrowed by them from banks. The unity and cooperation that was witnessed at this time of crisis has been exemplary. The victims of January 2011 are regaining their confidence and hope for a promising future. They feel they owe a lot to their groups and PEDO for helping them cope with this nightmare.

21. Journey from a job seeker to job provider

Dhuli Ben of Nalwa village joined an SHG where the members started saving a monthly amount of Rs.10. The amount might have been small but the implications were far better than anybody could have fathomed. Dhuli Ben was able to borrow Rs.5,000 from the group to repair her house. Soon she took loans of amount Rs.10,000 and Rs.25,000 for establishing a shop and for installing a flour mill. Dhuli Ben has a very humble background. She is not literate. Her husband Laxman was working in


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Gujarat who later returned to his village and started working in a motor garage. They have 4 children. The couple was content with their income and the work they were engaged in. However they later decided to concentrate on a particular vocation instead of managing a variety of livelihood activities. This made them shutdown their shop and their flour mill. The couple with the support of Dhuli Ben’s SHG started a wood cutting business.

Today, Dhuli Ben and Laxman have a flourishing business. Not only is the profit from this business high but it has provided employment to 10 people in the village. Dhuli Ben believes that whatever she has achieved today would not have been possible without her SHG. She is now an entrepreneur. She feels her group has given her financial help and moral strength to achieve her best. Dhuli Ben wants to provide good quality education to her children to secure a bright future for them also.

22. Economic independence through SHG

Kokhraya of Gelan village got married to Laxman Meena at the tender age of 15. Being a girl, Kokhraya was deprived of education by her parents. Due to lack of education she had no choice but to join her husband in farming. Rain fed agriculture is practiced in the area and the couple worked hard during the rainy season. When there is no work in the agricultural lands, Laxman would go to Gujarat to work as a laborer. In the year 2000, Kokhraya became member of a newly formed group. She started saving in the group. Her first loan amount was of Rs.500 and this was used to buy seeds for cultivation. She was able to successfully repay the loan amount and subsequently she took more loans from the group. The borrowed amount was used for a variety of purposes such as recovering mortgaged ornaments from a moneylender, buying buffaloes, health treatment of her daughter, bore well for vegetable cultivation etc. Till date Kokhraya has borrowed approximately Rs.1, 21,500. All the investments that she has made till now have ensured regular income to her family. Now, Laxman does not feel the need to go to Gujarat in search of work. Kokhraya has a new identity and her confidence level has tremendously increased. She says her life has changed.

23. SHG helped in efforts to become economically dependent

In the village of Gandhwa, Lok Jhumbish scheme was being implemented by PEDO. Men and women both used to discuss various issues besides education during the meetings organized by PEDO. During these meetings the need to form SHGs was realized. It was then that members of PEDO along with the support of locals organized women into a SHG.

Bhuri Ben is one of those women who joined this SHG. Bhuri and her husband Gautam lived peacefully with their family but this did not last long. The joint family got divided due to which Bhuri and Gautam had to move out and live by their own. Both faced a difficult time starting their lives from scratch. Bhuri Ben has always been an active member of her SHG. Her savings started increasing just the way her confidence level and awareness. Initially she started with a saving of Rs.10 which later increased to Rs.100 per month. She was determined to do well in life for her and her family’s benefit. Her first loan amount was for Rs.2,000 which she utilized for buying buffaloes. The money was repaid on time. This was just the beginning of her success. Soon she took more loans for bundling of field, deepening of well, starting a shop and buying land. Till date she has availed total loan amount of Rs.73,000. Economic stability is just one of the benefits that was made possible by Bhuri Ben’s SHG. Buri Ben is respected by people around her and is now more aware about banks and PRIs. Bhuri Ben does not plan to stop growing further. She has future plans to drill a bore well near to her land for irrigation which will help her grow cash crops. In spite of being illiterate Bhuri Ben knows the importance of education and therefore sends all her children to schools.

24. New found life of Parvati

Parvati got married at the tender age of 20. Her husband’s name is Rupa jee Bhagora who belongs to Naya Gaon of Dungurpur village. Parvati by nature has always been very shy. Even though she has


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attended school till class 5, her confidence level is extremely low. In the year 1989 PEDO formed an SHG in the village of Naya Gaon. Women wanted Parvati to become the member but Parvati was not interested and gave the excuse of lack of money. However it was destined for Parvati to join the SHG. Her sister-in-law gave the money and made sure that Parvati joins the SHG. With a lot of reluctance Parvati used to attend SHG meetings. However with time her participation and enthusiasm in group activities increased. She was made the treasurer by members. Even though Parvati was literate she was hesitant in using her signature and instead used her thumb impression. This was a sign of low confidence level in Parvati. Parvati was motivated in her SHG to write records and maintain them. Initially it was a very difficult task for her but gradually it helped her to gain confidence. Soon she started conducting meetings and a remarkable difference in her interaction with people was noticed. She got opportunity to visit places like Delhi, Jaipur, Udaipur, and Madurai for greater exposure. She attended meetings with Bank of Baroda officials for credit linkage of SHGs with banks. Parvati’s leadership qualities came to light when she addressed gatherings of more than 1,000 women of SHGs. She was elected a ward member and also contested for the post of Sarpanch. Parvati regrets that she could not educate her daughter. There is no school in the village and Parvati was not comfortable to send her daughter to schools that are far away. But Parvati knows the importance of education and thus encourages everyone to educate their children for a bright future. She has even established a school in the village. Parvati is an inspiration to others.

25. Story of Haklu Ben

In the year 2007 PEDO organized meetings with tribal women of Dungurpur District to tell them the importance of regular meetings, regular savings other important practices for success of SHGs. Haklu Ben was a member of one of these SHGs in Sadia village which attended PEDO meetings. In this SHG, the members started with a monthly saving of Rs.50 and soon opened an account in the bank. Haklu Ben took loan from her group and invested in agriculture and irrigation facilities. She used some of the loan amount to recover her mortgaged jewellery. Later she availed of Rs.10,000 and opened Kirana shop. She started Kirana shop in the year 2010 and now her sale per day is around Rs.1,500-2,000. She has even constructed a pucca house. She is illiterate but she has made sure that her children are educated. One of her children is doing graduation. Moreover lack of education has not come in the way of her learning. She can prepare income-expenditure sheets. She encourages the members of SHG to become self dependent. Today, she has been elected the President of 20 groups at Cluster level.


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Annexure 2: Fieldwork Associates

1. Kanwar Krishna Sharma - Program in-charge - Head office

2. Dhanraj Labana - Block Coordinator - Simalwara block

3. Nand Kishor Trivedi – in-charge of Unicef Program – Head office

4. Ms. Anjana Vyas - Training in-charge – Head office

5. Deepak Swarnkar - Computer Operator

6. Vijay Joshi - Circle Coordinator -Dhambola

7. Ankush Jain -Circle Coordinator - Sabla

8. Hamant Bhoi -Circle Coordinator - Mandali

9. Ms. Rekha Patidar -Circle Coordinator - Peeth

10. Jayesh Joshi -Circle Coordinator - Punjpur

11. Lalshankar joshi -Circle Coordinator - Jasela

12. Anita Patidar -Circle Coordinator - Ganji

13. Nand lal Labana -Circle Coordinator - Jhonthari

14. Arun Reswal -Circle Accountant - Peeth

15. Pyari devi labana - Circle Coordinator - Mada


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Annexure 3: SHG Member Questionnaire

Schedule for SHG Member

Federation: Cluster: Village: SHG: Section I: Personal Details

Working members in the family: Name Age Relationship Occupation(s) Days/Season of

engagement Income (Approx. Annual Rs.)

1 – Agriculture; 2 – Animal Husbandry; 3 - Labour; 4 – Artisan; 5 – Petty Trade; 6 – Migration; 7 – Service; 8 – Others

Section II: Business with SHG

Number of members in your SHG: What are you in your SHG now? Earlier: Do you have any role in Cluster/Federation? Monthly regular savings, Rs: Your total amount in the SHG as on date, Rs:

S.No. Loan Amount Rs.

Purpose Outstanding amount, if any Rs.

Code: 1 -Health ; 2 - Education ; 3.food 4. Consumptions, 5. Old debts, 6.Retrieve old assets, 7. House, 8. Other assets, 9. Agriculture, 10. Animal husbandry, 11. Non farm - Livelihoods ; 12. Business, 13. Other Livelihoods,14 – others (specify)

What are the other activities of SHGs you are involved?

Apart from interest on loan, monthly savings & loan repayments; what are the payments you make to the SHG?

Name of the Member: Age: Caste: ST/SC/BC/MN/Others

BPL status: APL/BPL/Antyodaya Date/Year of joining the SHG:

Total family members: Adults M: F: Children M: F:

Your family’s annual Income from all sources, Rs.:


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Section III: Results Yes No Partly Reason Are you getting loans easily? Are you getting sufficient amount of loans? Are loans available on time? Has your repayment capacity increased? Have you utilized the loans for the purposes intended for?

Do you feel that interest on loans has decreased now (in and outside SHG)?

Is your savings safe in your SHG? Is adequate food available to you throughout the year?

Are you able to get work all through the year? Are you getting the benefit from all the schemes you are eligible for?

List other results: 1.

2.

3.

Impact/Achievement Yes No Partly Mobility Identity Less violence Able to take decisions independently or with minimal outside interference

Solidarity Confidence Control over my resources Able to Voice my ideas, concerns effectively Able to represent on issues to leaders, panchayat etc

Government/Non-Government Facilities/Institutions

Aware E/N

Access E/N

Use E/N

Influence/Control E/N

Anganwadi, School, Panchayat, Post Office, Health subcentre, Bank, Patwari

Block Panchayat, Tehsil, Collector, Hospital, ZP, Police Station, Veterinay Hospital, Govt. Depts.

Gram Sabha, Elections, Market, … Rate Earlier/Now – 0 to 2/0 to 2

Availability of Physical Resources Own E/N Access E/N Use E/N Cycle, Motor Cycle, Bullock Cart Radio, Television, Cell/Phone, Computer Fan, Chair, Table, Clock, Watch Tractor, Jeep, Auto, Truck, Goods Van Cooking Gas Rate Earlier/Now – 0 to 2/0 to 2


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Changes over Time [Say Five Years] Income Earlier

Rs./Year Now Rs./Year

Expenditure Earlier Rs./Year

Now Rs./Year

Crop 1 Food Crop 2 Health Education Clothes Milk Entertainment etc. Animals Assets Other produce Interest on Loans Labour Insurance Migration Others: MGNREGS 1. Artisan 2. Service 3. Others 4. Total Total

Include multiple sources and drains.

Purchases Sales

Item Amt Rs.Previously

Amt Rs.Present Item

Amt Rs.Previously

Amt Rs.Present

Rice Wheat Dal Oil Clothes

Well-being/Asset Status Item Earlier Now Item Earlier Now Clothes – pairs Jewellery Rs. House (Pucca, Kuchcha, Semi-Pucca) Land Bighas

Separate Kitchen Land Irrigated Bighas Cattle shed Buffaloes/Cows Bath Room Cattle Toilet Goats/Sheep Electricity Solar Others 1

Furniture Rs. Others 2


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Section IV: Process – Satisfaction, usefulness

S. No. Process/Item Satisfaction (0-2) Usefulness (0-2) 1 Savings 2 Loaning 3 Repayment 4 Bank Linkages 5 Bookkeeping 6 Audit 7 Planning and Budgeting 8 Solidarity 9 Leaders 10 SHG Functioning 11 Cluster Organization 12 Federation 13 Conflict Resolution 14 Livelihoods Activities 15 Emergencies 16 Membership fee 17 Loan processing fee 18 Interest sharing

What does the Cluster do for you?

...................................................................................................................................................... What does the Federation do for you? ......................................................................................................................................................

3 Key impacts of SHG on your family?

1. .......................................................................................................................................... 2. .......................................................................................................................................... 3. ..........................................................................................................................................

What would have happened to your family, if there was no SHG? ...................................................................................................................................................... What will you do if SHG closes now? ......................................................................................................................................................

Date: Signature of the interviewer along with name

impact of shgs: a study of pedo’s intervention in...

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