Involvement of SHGs with bank could help in overcoming the problem of high transaction cost in providing credit to the poor. The present study on “Micro-finance through SHG-a case study in Hubli-Dharwad” is carried to know the changes in Socio-economic and financial condition of SHG members through their functions. SHGs are making significant contribution to women empowerment and empower the members in economic, social and political spheres. The micro-finance programmes are also expected to productbucket.in become increasingly self-reliant and independent of donor funds through Self help groups. National Bank for Agriculture and Rural Development reports that around 68.56% of total SHGs are located in south and eastern regions contributing 81.62% of total SHGs’ savings. They get 93.61% of total credits extended to SHGs with a remarkable credit quality with NPAs to total loans ratio less than 5%, while other regions have NPA ratio more than 10%, sometimes more than 40% in some Indian states.
SHG groups rated A and B as per NABARD grading norms are only eligible for takeover. Regular meetings; Regular savings; regular inter-loaning; Timely repayment; and Up-to-date books of accounts. Branch shall provide appropriate repayment period in negotiation with group which may vary from 03 to 7 years as per DAY-NRLM guidelines. Women SHGs are eligible for interest subvention for a loan outstanding balance of Rs.3.00 lakh based on WAIC .
The general culture of those seeking power is not so much to be trustees as to extract every possible benefit that power opens the door to.Our Prime Minister Shri Narender Modihas challenged this culture and hopefully it will permeate downwards through the government. In this context of values, micro finance as a poverty alleviation strategy requires integrity in governance and fiduciary responsibility ; in turn this means that NBFC-MFIs in this sector cannot be fully driven by self-interest or by afocus only on the next quarter’s numbers. Every NBFC-MFI claims to have two objectives – one to be commercially viable and to promote a social objective of reducing/eliminating poverty. Unless the Governing Bodies of NBFC-MFIs are proactive, the commercial objective will take over entirely reducing the social objective to a slide in the power point presentation at Seminars. In fact this inability to balance these two objectives was a major feature of the Governing Bodies of the Andhra NBFC- MFIs and the gap between a stated mission and the reality grew rapidly till they lost credibility.
Loans of women members of SHGs, jewel loans of poor will be waived: TN CM K Palaniswami
Branches to attend the meeting of group at regular interval and ensure group dynamics/utilization of loan amount. FGMOs/ROs should review the performance of SHG takeover scheme quarterly basis and need to put note to concerned FGMO/RO head for information and action. Eligible loan amount to be calculated based on doses as mentioned for CC limits. The maximum takeover amount shall be restricted to Rs.20.00 lakh per group. State Rural livelihood Mission-Jeevika /NABARD/Non-Governmental organization /Village organization etc. shall recommend for the takeover of loan facility clearly citing the reason for takeover and they must confirm the veracity of the group. SHG should submit resolution for takeover of SHG loan with specific reason. Credit linkage will be normally after 06 months of successful/satisfactory operations of the SHG with the Bank.
I. NABARD Supported Projects
The Reserve Bank of India and the National Bank for Agriculture and Rural Development ushered in the concept of microfinance in the early 1990s. However, compared with the disastrous Latin American experience, in India the formal fusion of microfinance with the structure of mainstream institutional finance was somewhat different and beneficial to the poor to a certain extent. This was chiefly a result of the efforts of the RBI and NABARD and the vast array and reach of public sector banks, regional rural banks , and cooperative banks. Among the poor, rural women in particular have been significant beneficiaries of microfinance. The SHG movement has played a crucial role in empowering them through credit extended by banks.
Self-help group movement is one of the most powerful incubators of female resilience and entrepreneurship in rural areas. It is a powerful channel for altering the social construct of gender in villages. SHG rely on the notion of “Self Help” to encourage self-employment and poverty alleviation. It can be defined as self-governed, peer-controlled information group of people with similar socio-economic background and having a desire to collectively perform common purpose.
During the year various types of trainings have been imparted for all these SHGs. Apart from this, NCT is also implementing two SHG promotion and credit linkage programmes at Women-SHG programme at LWE affected Seoni district and Betul districts of Madhya Pradesh. As the bankers were little reluctant to finance SHGs and due to demand from SHGs, NCT has started providing small loans to these SHGs from its Micro Finance portfolio. This has helped the SHGs in generation of additional income, motivated them to continue the SHG concept and also motivated other non-SHG members in the villages to form new SHGs for their overall development. Hence, the Trust has decided to support these new SHGs wherever it is possible and link them to the local banks whenever they are ready to do so. India, Micro finance, micro credit, empowerment and economic growth, transparency, business opportunity, strategy, pricing, economic activities, loan, NABARD, banking, finance etc.
Branch shall verify books of records maintained by group and ensure all the books are maintained properly and updated on timely manner. Branch should ensure SHG group have completed 18 months from date of formation and same shall be ensured from book of records. Branches/Offices shall ensure the SHG fulfilling all the eligibility criteria for takeover. Prior to takeover it is mandatory for the concerned FGMO to enter into MoU with respective State Rural Livelihood Mission after getting approval from Agri. In case of takeover application sponsoring agency is other than SRLM/NABARD, FGM offices shall inform the respective SRLM/NABARD and enter into MoU.