shg by vysakh -second edition

8/2/2019 SHG by Vysakh -Second Edition

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SELF HELP GROUPS


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INTRODUCTION

What is SHG?

March 2006 over 33 million women have been linked to banksthrough 2.2 million SHGs. (NABARD Estimates)

Andhra Pradesh, Tamil Nadu, and Karnataka are the top three in thecountry.

The south accounts for 54% of SHGs (half of this in Andhra Pradesh

alone) and75% of bank credit. (year 2006)

The development role or promotion is undertaken Self HelpPromotion Agencies.


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IMPACT

Reduced the Incidence of poverty

to spend more on education

Empowered women by enhancing their contribution tohousehold income

Reduced child mortality, improved maternal health and theability of the poor to combat disease through betternutrition, housing and health - especially among womenand children


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Reduced dependency on informal money lenders and other

non institutional sources.

Facilitated significant research into the provision of financialservices for the poor and helped in building capacity at the

SHG level


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CHARACTERISTICS

The ideal size of an SHG is 10 to 20 members.

The group need not be registered.

From one family, only one member.

The group consists of either only men or of only women.

Womens groups are generally found to perform better.

Members have the same social and financial background.

The group should meet regularly.

Compulsory attendance.


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FUNCTIONS

Savings and Thrift

Internal lending

Discussing problems


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LINKING OF SHGS TO THE BANK

Step 1 Opening of S/B Account for the SHG

SB A/c in the name of SHG could be opened afterobtaining from the group the following documents

Resolution from the SHG

Authorisation from the SHG Copy of the rules and regulations of the SHG

Step 2 Conduct of internal lending by the SHG

Step 3 Assessment of SHGs


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Step 4 Sanction of Credit Facility to the SHG

In whose name is the loan issued?

What is the quantum of loan? How is the quantumdecided?

What constitutes the savings of the group?

What are the purposes for which the loan can be given to

the SHG? Who makes the repayment?

What is the collateral security for the bank?

Can the bank hold the SB A/c balance of the SHG as a

security? What is the rate of interest to be charged for the loans

granted to SHG by the bank?


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THE SOCIAL ROLE OF SHGS

1.SHGs and politicsThere are apparent synergies between SHGs and local

politics since through membership of SHGs, or SHG clusters

and federations, village women can gain experience of

relevant processes (regular meetings, taking decisions,

allocating money).

They also become more visible in the village, which is

important for campaigning.


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2.SHG and Social harmony

Majority of SHGs are single-caste groups is based onthe principle of affinity groups and neighborhoodproximity.

3.Social justice

SHGs seem uniquely placed to support their members onissues of social justice affecting women

4.SHGs and community action

Women in SHGs can work together to address issuesthat affect not only their own members, but others in thelarger community.


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SUCCESSFULEXAAMPLE


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KUDUMBASREE

Kudumbasree is a multi faceted women basedparticipatory poverty eradication Programme jointlyinitiated by Government of Kerala

and NABARD.

It is implemented by Community BasedOrganizations(CBOs) of Poor women in co-operation

with Local Self Government Institutions.


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HISTORY

UNICEF Supported UBSP-Alappuzha1992

Rural trial in Malappuram-1994-06

Fully conceptualised in 1996-08

Years of expansion1999-2003

Years of Innovation 2003-2006

Years of Institutionalisation 2006-onwards


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MISSIONOF KUDUMBASHREE

To eradicate absolute poverty in ten year throughconcerted community action under the leadership of

Local Governments, by facilitating organisation of

poor for combining self help with demand led

convergence of available services and resources to

tackle the multiple dimensions

and manifestation of poverty holistically.


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COMMUNITY BASED ORGANISATION

1) Neighbourhood Group (NHG)

2) Area Development Society (ADS)

3) Community Development Society (CDS)


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COMMUNITY BASED ORGANISATION(CBOS)

1) Neighbourhood Group The Building Block One woman each from 15 40 families at

risk Organized into a Neighbourhood Group (NHG)

Democratically selected Committee of Five BarefootSpecialists

Volunteer for Community Health Activities

Volunteer for Infrastructure Development Volunteer for Income Generation Activities

Secretary (The General Manager)

President (The Leader and Chief Coordinator)


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2)Area Development Society - ADS

o Federation of all NHGs in a ward

3)Community Development Society- CDS

o The Apex body at the Local Body Level

Registered under the Travancore - Cochin Literary

Scientific & Charitable Societies Act of 1955


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KEY DEVELOPMENT INITITIATIVES

Human Resource Development Micro Finance Plus

Savings & Credit

Bank Linkage

Micro housing (Bhavanashree)

Micro Enterprises

Basic Minimum Needs

Haritha sree Clean Kerala Business.


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1). Human Resource Development

Capacity & Capability building of CBOs

Training for skill upgradation and attitudinal change of

Volunteers

Training in Micro Enterprise Development

Preparation of anti-poverty sub plan and convergence

Cascading type of training in 34 topics

Performance Improvement Training tie up with EDII,

Ahemadabad

Sensitization programmes in specialized topics like Legal

Literacy, Women Friendly Police etc


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2)Microfinance in Kudumbashree

Basic thrift and credit operations at NHG level

Weekly meetings and collection of savings

Cumulative Savings of Rs 984 cr and loan of Rs 2488 cr

NHG-Bank linkage model for accessing additional funds

End borrowers get credit at bank rates

Gradual increase in loans

91711 NHGs linked for Rs 542 cr Incentive of Rs 5000 (max)/ linked group from Kudumbashree funds

Bhavanashree Micro housing product through bulk linkage to CDS

Loans of Rs 40000-5000 with 10 year repayment period

Monthly EMI of Rs 450-600 44000 loans sanctioned worth Rs 185 cr

LSG provide assistance upto Rs 10000 / loan


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Microenterprises individual and group (min 5) incomegeneration activities

Projects of up to Rs 2.50 Lakhs

50% of the total project cost as back end subsidy

45 % is the loan component

More than 100 activities ranging from solid waste

management to Health care to IT services Yuvashree programme for youth from NHG families

Common activity bought under single brand Takehome food supplement units (more than 300)

5717 group and 26522 individual enterprises involving67000 people

Subsidy worth Rs 47.69 cr released


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MICRO ENTERPRISEAmrutham Take Home Food Supplement

An innovative enterprise to improve the nutritional status of children

below 3 years in BPL families

Food Supplement Take Home Ration through Anganvady

Technology support from CPCRI, Kasaragode

Five member activity group formed from NHGs

Five hundred Groups targeted from 100 LSGIs

Project cost of each unit Rs 2.20 lakh, Subsidy Rs 50000/-and Rs

10000/- entrepreneur contribution

Bank loan Rs 1.60 lakh per unit

Funding through Yuvashree

Intensive training to entrepreneurs for six days at existing Units


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3)BASIC MINIMUM NEEDS

44,526 New Houses (urban)

35,429 Shelter up gradation

Women entrepreneurs for repair of water meter

Promotion of Rain water harvesting

46,344 sanitary latrines

620 school toilets

20 Sanitary Marts

155 Micro enterprises to manage Solid Waste and

Provide Clean Environment


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4).LEASELANDFARMING-HARITHASHREE

Employment opportunities for women in

Agricultural Sector

Fallow lands brought under cultivation

Increase in land productivity Additional Income and food security for poor family

ensured

Opportunity to implement new agricultural methods

and new planting materials Availability of loan from financial institutions

Revamping the agricultural sector


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5 )CLEAN KERALA BUSINESSSolid Waste Management Wealth from Waste

Solid Waste Management Groups from NHGs

Group Members collect segregated waste from

Households

Transport waste to Corporation dumping yards using

tipper auto rickshwa

Each household pays Rs 30/- per month as user charge

Group cater 500 to 1000 houses

Project cost Rs 3.5 lakh

Clean Kerala units established in 20 ULBs


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shg by vysakh -second edition

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