SELF HELP GROUPS

INTRODUCTION
What

is SHG?

March 2006 over 33 million women have been linked to banks through 2.2 million SHGs. (NABARD Estimates) Andhra Pradesh, Tamil Nadu, and Karnataka are the top three in the country. 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 Help Promotion Agencies.

IMPACT

Reduced the Incidence of poverty to spend more on education Empowered women by enhancing their contribution to household income

Reduced child mortality, improved maternal health and the ability of the poor to combat disease through better nutrition, housing and health - especially among women and children

Reduced dependency on informal money lenders and other non institutional sources.
Facilitated significant research into the provision of financial services for the poor and helped in building capacity at the SHG level

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.

FUNCTIONS
Savings Internal

and Thrift lending problems

Discussing

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 after obtaining 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

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 quantum decided? 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?

THE SOCIAL ROLE OF SHGS

1.SHGs and politics
There 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.

2.SHG and Social harmony Majority of SHGs are single-caste groups is based on the principle of affinity groups and neighborhood proximity. 3.Social justice SHGs seem uniquely placed to support their members on issues of social justice affecting women 4.SHGs and community action Women in SHGs can work together to address issues that affect not only their own members, but others in the larger community.

SUCCESSFUL EXAAMPLE

KUDUMBASREE

Kudumbasree is a multi faceted women based participatory poverty eradication Programme jointly initiated by Government of Kerala and NABARD.

It is implemented by Community Based Organizations(CBOs) of Poor women in co-operation with Local Self Government Institutions.

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

MISSION OF KUDUMBASHREE

To eradicate absolute poverty in ten year through concerted 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.

COMMUNITY BASED ORGANISATION

1) Neighbourhood Group (NHG)

2) Area Development Society (ADS)

3) Community Development Society (CDS)

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 Barefoot Specialists Volunteer for Community Health Activities

Volunteer for Infrastructure Development

Volunteer for Income Generation Activities Secretary (The General Manager) President (The Leader and Chief Coordinator)

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

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.

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

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

Microenterprises individual and group (min 5) income generation 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 Take home food supplement units (more than 300) 5717 group and 26522 individual enterprises involving 67000 people Subsidy worth Rs 47.69 cr released

Amrutham Take Home Food Supplement

MICRO ENTERPRISE

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

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

4).LEASE LAND FARMING - 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

5 )CLEAN KERALA BUSINESS

Solid 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