Social.doc

7/29/2019 Social.doc

1/12

STERLING INSTITUTE OF MANAGEMENT

STUDIES

SELF HELP GROUP

SUBMITTED TO: SUBMITTED BY:TASNEEM KHIDHIR AMOL S PHADATARE


2/12

SELF HELP GROUPS

Since the reconstitution of the Commission in January 2000, the Commissionstarted projects with the aim of making women economically empowered. Oneof the major initiatives taken by the Delhi Commission for Women in the year2000-2001 was to set up pilot projects in collaboration with partner NGOs forempowering women economically and thus helping prevent crimes againstwomen. The Commission tied up with various NGOs working in various parts of

Delhi for formation of Self-Help Groups.

1 What is a Self-Help Group?Self-Help Group (SHG) is a small voluntary association of poor people,preferably from the same socio-economic background. They cometogether for the purpose of solving their common problems through self-help and mutual help. The SHG promotes small savings among itsmembers. The savings are kept with a bank. This common fund is in thename of the SHG. Usually, the number of members in one SHG does notexceed twenty.

2 What are the objectives of Self-Help Groups ?The SHGs comprise very poor people who do not have access to formalfinancial institutions. They act as the forum for the members to providespace and support to each other. It also enables the members to learn tocooperate and work in a group environment. The SHGs provide savingsmechanism, which suits the needs of the members. It also provides a costeffective delivery mechanism for small credit to its members. The SHGssignificantly contribute to the empowerment of poor women.

3 Who helps in the formation of SHGs ?Non Governmental Organisations (NGOs) Social Workers, health workers,village level workers, etc Informal Associations of local peopleDevelopment oriented government departments Banks Bank personneland other individuals (in their personal capacities) Farmers' Clubs underthe Vikas Volunteer Vahini ( VVV) Programme of NABARD Otherdevelopment institutions.
http://www.nabard.org/roles/mcid/shgs.htmhttp://www.nabard.org/roles/mcid/vvvscheme.htmhttp://www.nabard.org/roles/mcid/shgs.htmhttp://www.nabard.org/roles/mcid/vvvscheme.htm


3/12

4 Should SHG members comprise only poor people?The SHG-bank linkage programme is targeted to reach the poorest

sections, which are bypassed by the formal banking system. Therefore, itis essential that only the very poor be considered as the target group forthe SHG -bank linkage programme.

5 Should the SHG comprise only women members?An SHG can be all-women group, all-men group, or even a mixed Group.However, it has been the experience that women's groups perform betterin all the important activities of SHGs. Mixed group is not preferred inmany of the places, due to the presence of conflicting interests.

6 What is the importance of training in the success of SHG strategy? Training can contribute significantly to the success of the SHG banklinkage programme. Appropriate training (formal or informal) at each stageof SHGs' growth is one of the essential inputs required.

7 What are the types of training programmes that would be

necessary in promoting SHGs?Training is essential for all partner agencies who participate in the SHGbank linking programme. The details regarding the different types oftraining needs, organisational facilities, modules,etc are presented inSection 4 - Capacity Building of Partner Institutions in microFinance.

8 What could be considered as indicators of a good SHG?

Homogeneous membership

As far as possible, the membership of an SHG may comprise people fromcomparable socio-economic background. Though difficult to define in clearterms, a major indicator of homogeneity in membership is absence ofconflicting interests among members.

No discriminationThere should not be any discrimination among members based on caste,religion or political affiliations.
http://www.nabard.org/roles/mcid/section4.htmhttp://www.nabard.org/roles/mcid/section4.htm


4/12

Small membershipIdeally, the group size may be between 15 and 20, so that the membersare participative in all activities of the SHG. In a smaller group, membersget opportunity to speak openly and freely. However, the membership may

not be too small that its financial transactions turn out to be insignificant. .

Regular AttendanceTotal participation in regular group meetings lends strength to theeffectiveness of SHGs. To achieve this, the SHGs should place strongemphasis on regular attendance in the group meetings. Transparency infunctioning

It is important that all financial and non-financial transactions aretransparent in an SHG. This promotes trust, mutual faith and confidenceamong its members. Maintenance of books of accounts as also other

records like the minutes book, attendance register, etc., are important.

Set of ByelawsThe SHG may discuss and finalise a set of byelaws, indicating rules andregulations for the SHG's functioning and also roles and responsibilities ofmembers. It is better to have a written set of byelaws. The Self HelpPromoting Institution (SHPI) and bank may guide the SHGs in this.

ThriftThe habit of thrift (small savings) is fundamental to the SHG and helps inbuilding up a strong common fund.

Utilising savings for loaningOnce an SHG has accumulated sizeable amount in the form of savingssay for a period of about 3-6 months, the members may be allowed toavail loans against their savings for emergent consumption andsupplementary income generating credit needs.

9 How is a bank account opened by an SHG?As soon as the SHG is formed and a couple of group meetings are held,

an SHG can open a Savings Bank account with the nearest Commercialor Regional Rural Bank or a Cooperative Bank. This is essential to keepthe thrift and other monies of the SHG safely and also to improve thetransparency levels of SHG's transactions. Opening of SB account, in fact,is the beginning of relationship between the bank and the SHG. TheReserve Bank of India has issued instructions to all banks permitting themto open SB accounts in the name of registered or unregistered SHGs.


5/12

10 What are the advantages of internal lending of own savings in anSHG?By initially managing their own common fund for some time, SHGmembers not only take care of the financing needs of each other, butdevelop their skills of financial management and intermediation as well.Lending to members also enhances the knowledge of SHG members insetting the interest rate and periodic loan installments, recovering the loan,etc.

The SHG programme has assumed such enormous dimension in a briefperiod of about one year that these are as mentioned below:-

Self-Help Groups-more than 16,000 women have been involved.

Total No. of Groups716

No. of Members (Approx.)16000

(in Rs.)

Total Saving40,63,926.00

Loan given 26,48,375.00

Total recovery 10,01,844.00

Interest received 82,848.00

Default 11


6/12

Bank Account opened 282

MICRO FINANCE

SHG MOVEMENT A MISSION:SBI has taken up SHG movement as a mission.A noble mission to reachthose families who were hitherto having no access to the credit by anyformal financial institution and, therefore, were depending on informalsources and moneylenders.

MICRO FINANCE DEEP ROOTS IN SBI:

Micro finance is not new to State Bank of India.Banks association with

non-government organizations (NGOs) or voluntary agencies in extending

financial help can be traced as far back as 1976 well before NABARD

introduced SHG-Bank Credit Linkage Programme as a pilot project in

1992.

STEADY GROWTH IN SHG-BANK CREDIT LINKAGE PROGRAMME:

SBI has actively participated in SHG-Bank Credit Linkage programme

since its inception in 1992 as a pilot project of NABARD.Since then the

Bank has made a steady progress in financing SHGs.As on March 2006,

SBIs branches spread throughout the length and breadth of the country


7/12

have opened 6,30,067 Savings Bank account of SHGs out of which more

than 5.41 lac SHGs have been provided with credit facilities thus

benefiting more than 75 lac poor people.Majority of these SHGs are

women SHGs.The year-wise cumulative position of SHGs-Bank Linkage

programme for the last 4 years is as under:

Year March 03 March 04 March 05 March 06

SHGs linked(financed)

1,07,553 1,74,666 3,43,691 5,40,481

No. of beneficiaries 12,33,660 21,50,752 48,11,674 75,68,842

Amount disbursed 324.84 cr. 614.87 cr. 1311.45

cr.

2262.95

cr.Amount outstanding 269.43 cr. 462.77 cr. 872.08 cr. 1459.89

cr.

No. of SHGsmaintainingSavings a/c in theBank

2,79,466 3,69,568 5,08,396 6,36,067

Amount in Savingsa/c(Amt. in Rs.)

261.36 cr. 348.31 cr. 411.82 cr. 434.07 cr.

SBI LEADER IN SHG-BANK CREDIT LINKAGESBI is maintaining its position as a leader among Commercial Banks in

credit linking of SHGs and is a prime driver for the movement.As at the

end of March 2006, SBI with a share of approximately 47% of total SHGs

financed by Commercial Banks is far ahead of others.

INNOVATIONS & INITIATIVESBank has successfully initiated various measures toward widening its SHG

network.To list a few examples:


8/12

(i)Sensitisation of staff: Banks aim is to sensitise the entire stafffrom Manager to Messenger working in rural and semi-urbanbranches towards the programme.

(ii)Special training programmes in SHGs are being conducted at 54training centres of the Bank in the country apart from State Bank

Institute of Rural Development, Hyderabad.

(iii)Close liaison with NGOs: Operating functionaries at branch level and

region level are in close contact with NGOs in their area to take the

movement ahead.For the purpose, regular meetings are arranged

with the NGOs and their support is solicited.

(iv)SHG cells: Special SHG cells have been opened at major branches.

(v)Lending to NGOs / Federations of SHGs: Lending to credible NGOs /

Federations of SHGs on selective basis for on lending to SHGs is

being encouraged.

(vi)Sahayog Niwas: SBI has launched its Housing Loan product

SAHAYOG NIWAS meant for SHG members.Under the scheme

formulated keeping the socio economic conditions of villages

insight, housing loans are given to the SHG members without any

mortgage of house / land.Response to this product is very

encouraging.

(vii)SBI Life - Shakti: SBI Life, our insurance subsidiary, is the first to

introduce a life insurance scheme, especially designed for SHG

members.Special feature of the scheme is that entire premium


9/12

amount paid by the member is refunded after maturity, i.e., 10

years.

(viii)Rural training institutes: To help the rural youth to stand on their feet,

two RUDSETI type training institutes have been established at

Gulbarga and Gadag in Karnataka State, to impart training in self

employment to youth free of cost.

(ix)SBI staff as SHPI: The main role of formation and nurturing of SHGs

have been played by NGOs who, apart from their fundamental role

of social service, also aim to make the poor economically self

sufficient.But in SBI, our committed work force is not lagging behind

and a number of committed staff members have worked hard to

form and nurture SHGs on their own.

(x)Appreciation by Government: A number of our branches / Circles have

also received commendation and appreciation from various State

Governments for doing excellent job in SHG-Bank Credit Linkage

programme.

NABARD felicitated 15 SHGs at a function organized in New Delhi on 13 th

September 2005.The function was presided over by the Honble

Union Finance Minister.Out of total 15 SHGs felicitated, 4 were

financed by our branches, one each from Orissa, Jharkhand,

Madhya Pradesh and Uttaranchal.


10/12

(xi)Samanwita: Bank has sponsored and financially supported NGO

SAMANWITA in collaboration with Government of Orissa for

supplementing the process of socio economic upliftment of the

tribals and the downtrodden in the poorest and most backward

Kandhamal district of Orissa State where 52% of the population is

that of tribals.Core activities performed by Samanwita is

empowerment of people through promotion of SHGs, especially

women SHGs and development of human resources.

(xii)SHPI status: State Bank of India is the first Commercial Bank to which

NABARD has recently given SHPI status.

FUTURE PLANSSBI has set for itself an ambitious target of credit linking 1 million SHGs up

to March 2008.

The Bank has started to leverage our vast SHG network for variousservices beyond credit delivery.


11/12

Women self help group

Nilakantha Mahila Kosha is the name of a women self help group from

Puran Panchayat of Balianta Block. It was created, with the help of a local

NGO, after the Super Cyclone, in 1999. This eighteen member group,

besides undertaking micro credit enterprise, shares all their problems and

try to resolve it collectively.

During the critical floods from 2001 the group faced one more

challenge. It fortunately could be solved with techniques and information

they acquired in the trainings promoted by the Disaster Campaign and

Preparedness Programme. It was last year, when one of the villagers got

drunk. He did not take proper care and went near the river to see the

floodwater. Suddenly, he swayed and fell into the river and began to

drown. The self-help group was informed in time and, with the help of the

local youths, could save him.

As he required some medical support, also because his wife was

about to give birth, again Nilakantha Mahila Kosha came to his rescue.The self-help group gave from their savings a financial assistance to the

family. The group, after this experience, called a meeting with all the

male members of the village to try to close all the liquor shops of the

village. Also, the local police and the Panchayat - the village level

politician - assisted them in this mission.

In addition, the villagers came forward to prepare a contingency plan

for the natural disaster faced by them and this women self help group

took the lead in doing so. They organized male groups and started

rehabilitation works of the community by repairing roads, monitored relief

distribution and management of village affairs.


12/12

Documents

Social.doc