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SELF HELP GROUP
SUBMITTED TO: TASNEEM KHIDHIR
SUBMITTED BY: AMOL S PHADATARE
The Commission tied up with various NGOs working in various parts of Delhi for formation of Self-Help Groups.SELF HELP GROUPS Since the reconstitution of the Commission in January 2000. . health workers. 1 What is a Self-Help Group? Self-Help Group (SHG) is a small voluntary association of poor people. The savings are kept with a bank. etc Informal Associations of local people Development oriented government departments Banks Bank personnel and other individuals (in their personal capacities) Farmers' Clubs under the Vikas Volunteer Vahini ( VVV) Programme of NABARD Other development institutions. the number of members in one SHG does not exceed twenty. They come together for the purpose of solving their common problems through selfhelp and mutual help. Usually. village level workers. They act as the forum for the members to provide space and support to each other. The SHGs provide savings mechanism. the Commission started projects with the aim of making women economically empowered. The SHGs significantly contribute to the empowerment of poor women. It also provides a cost effective delivery mechanism for small credit to its members. The SHG promotes small savings among its members. It also enables the members to learn to cooperate and work in a group environment. This common fund is in the name of the SHG. One of the major initiatives taken by the Delhi Commission for Women in the year 2000-2001 was to set up pilot projects in collaboration with partner NGOs for empowering women economically and thus helping prevent crimes against women. 2 What are the objectives of Self-Help Groups ? The SHGs comprise very poor people who do not have access to formal financial institutions. preferably from the same socio-economic background. which suits the needs of the members. 3 Who helps in the formation of SHGs ? Non Governmental Organisations (NGOs) Social Workers.
However. Appropriate training (formal or informal) at each stage of SHGs' growth is one of the essential inputs required. all-men group. organisational facilities. No discrimination There should not be any discrimination among members based on caste. 8 What could be considered as indicators of a good SHG? Homogeneous membership As far as possible. modules. it has been the experience that women's groups perform better in all the important activities of SHGs. Though difficult to define in clear terms. due to the presence of conflicting interests. The details regarding the different types of training needs. Mixed group is not preferred in many of the places. 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 SHG bank linking programme. religion or political affiliations. or even a mixed Group. . 5 Should the SHG comprise only women members? An SHG can be all-women group. it is essential that only the very poor be considered as the target group for the SHG -bank linkage programme. the membership of an SHG may comprise people from comparable socio-economic background. Therefore. a major indicator of homogeneity in membership is absence of conflicting interests among members.Capacity Building of Partner Institutions in microFinance. which are bypassed by the formal banking system.4 Should SHG members comprise only poor people? The SHG-bank linkage programme is targeted to reach the poorest sections.etc are presented in Section 4 . 6 What is the importance of training in the success of SHG strategy? Training can contribute significantly to the success of the SHG bank linkage programme.
To achieve this. the members may be allowed to avail loans against their savings for emergent consumption and supplementary income generating credit needs. etc. attendance register. This is essential to keep the thrift and other monies of the SHG safely and also to improve the transparency levels of SHG's transactions. It is better to have a written set of byelaws. Utilising savings for loaning Once an SHG has accumulated sizeable amount in the form of savings say for a period of about 3-6 months. Regular Attendance Total participation in regular group meetings lends strength to the effectiveness of SHGs. mutual faith and confidence among its members. Thrift The habit of thrift (small savings) is fundamental to the SHG and helps in building up a strong common fund. The Reserve Bank of India has issued instructions to all banks permitting them to open SB accounts in the name of registered or unregistered SHGs. is the beginning of relationship between the bank and the SHG.Small membership Ideally.. However. In a smaller group. indicating rules and regulations for the SHG's functioning and also roles and responsibilities of members. Set of Byelaws The SHG may discuss and finalise a set of byelaws. members get opportunity to speak openly and freely. . Transparency in functioning It is important that all financial and non-financial transactions are transparent in an SHG. so that the members are participative in all activities of the SHG. Maintenance of books of accounts as also other records like the minutes book. the group size may be between 15 and 20. are important. in fact. . The Self Help Promoting Institution (SHPI) and bank may guide the SHGs in this. This promotes trust. Opening of SB account. the membership may not be too small that its financial transactions turn out to be insignificant. 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. the SHGs should place strong emphasis on regular attendance in the group meetings. an SHG can open a Savings Bank account with the nearest Commercial or Regional Rural Bank or a Cooperative Bank.
00 26.844.00 82.000 women have been involved.926. The SHG programme has assumed such enormous dimension in a brief period of about one year that these are as mentioned below:Self-Help Groups-more than 16. Lending to members also enhances the knowledge of SHG members in setting the interest rate and periodic loan installments.01.00 11 .) Total Saving Loan given Total recovery Interest received Default 40. etc.10 What are the advantages of internal lending of own savings in an SHG? By initially managing their own common fund for some time. but develop their skills of financial management and intermediation as well.375.63. of Groups No. recovering the loan.00 10.848. SHG members not only take care of the financing needs of each other.48. of Members (Approx.) 716 16000 (in Rs. Total No.
MICRO FINANCE – DEEP ROOTS IN SBI: Micro finance is not new to State Bank of India.A noble mission to reach those families who were hitherto having no access to the credit by any formal financial institution and. SBI’s branches spread throughout the length and breadth of the country .Bank’s 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.Since then the Bank has made a steady progress in financing SHGs.Bank Account opened 282 MICRO FINANCE SHG MOVEMENT – A MISSION: SBI has taken up SHG movement as a mission.As on March 2006. therefore. 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. were depending on informal sources and moneylenders.
74. 3.08. SBI – LEADER IN SHG-BANK CREDIT LINKAGE SBI is maintaining its position as a leader among Commercial Banks in credit linking of SHGs and is a prime driver for the movement.87 cr.36. 872. of beneficiaries Amount disbursed Amount outstanding No.067 Savings Bank account of SHGs out of which more than 5.067 261.691 48.481 75. 1459.45 cr.466 March ‘04 1.95 cr.660 324. 6.79. 2.68. 348.666 21.82 cr. 434. of SHGs maintaining Savings a/c in the Bank Amount in Savings a/c (Amt.69.07. in Rs.) March ‘03 1.33.43 cr.50.568 March ‘05 3.553 12. 462.41 lac SHGs have been provided with credit facilities thus benefiting more than 75 lac poor people. 5.07 cr.To list a few examples: .43.The year-wise cumulative position of SHGs-Bank Linkage programme for the last 4 years is as under: Year SHGs linked (financed) No.30. 269.31 cr.89 cr. SBI with a share of approximately 47% of total SHGs financed by Commercial Banks is far ahead of others.have opened 6.As at the end of March 2006.Majority of these SHGs are women SHGs.77 cr.396 March ‘06 5.08 cr. INNOVATIONS & INITIATIVES Bank has successfully initiated various measures toward widening its SHG network.40.674 1311.36 cr. 411.752 614.84 cr.842 2262.11.
Special feature of the scheme is that entire premium . is the first to introduce a life insurance scheme. (vi)Sahayog Niwas: SBI has launched its Housing Loan product ‘SAHAYOG NIWAS’ meant for SHG members.For the purpose. regular meetings are arranged with the NGOs and their support is solicited. Hyderabad. (iv)SHG cells: Special SHG cells have been opened at major branches.Under the scheme formulated keeping the socio economic conditions of villages insight. our insurance subsidiary. especially designed for SHG members. (vii)SBI Life . housing loans are given to the SHG members without any mortgage of house / land.Response to this product is very encouraging.(i)Sensitisation of staff: Bank’s aim is to sensitise the entire staff from Manager to Messenger working in rural and semi-urban branches towards the programme. (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. (ii)Special training programmes in SHGs are being conducted at 54 training centres of the Bank in the country apart from State Bank Institute of Rural Development. (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.Shakti: SBI Life.
one each from Orissa.The function was presided over by the Hon’ble Union Finance Minister. also aim to make the poor economically self sufficient. . Jharkhand. 10 years. (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.amount paid by the member is refunded after maturity. NABARD felicitated 15 SHGs at a function organized in New Delhi on 13 th September 2005. (viii)Rural training institutes: To help the rural youth to stand on their feet.Out of total 15 SHGs felicitated.e. (ix)SBI staff as SHPI: The main role of formation and nurturing of SHGs have been played by NGOs who. to impart training in self employment to youth free of cost. i. 4 were financed by our branches. Madhya Pradesh and Uttaranchal. apart from their fundamental role of social service. two RUDSETI type training institutes have been established at Gulbarga and Gadag in Karnataka State. 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..But in SBI.
Core activities performed by Samanwita is empowerment of people through promotion of SHGs. (xii)SHPI status: State Bank of India is the first Commercial Bank to which NABARD has recently given SHPI status. The Bank has started to leverage our vast SHG network for various services beyond credit delivery. . FUTURE PLANS SBI has set for itself an ambitious target of credit linking 1 million SHGs up to March 2008.(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. especially women SHGs and development of human resources.
shares all their problems and try to resolve it collectively. The group. The self-help group was informed in time and. This eighteen member group. besides undertaking micro credit enterprise. Also. when one of the villagers got drunk. called a meeting with all the male members of the village to try to close all the liquor shops of the village. again Nilakantha Mahila Kosha came to his rescue. It was last year. As he required some medical support. They organized male groups and started rehabilitation works of the community by repairing roads. 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. the local police and the Panchayat . During the critical floods from 2001 the group faced one more challenge.assisted them in this mission. The self-help group gave from their savings a financial assistance to the family. after this experience. monitored relief distribution and management of village affairs. after the Super Cyclone.Women self help group Nilakantha Mahila Kosha is the name of a women self help group from Puran Panchayat of Balianta Block. He did not take proper care and went near the river to see the floodwater. he swayed and fell into the river and began to drown. in 1999. with the help of a local NGO. with the help of the local youths.the village level politician . could save him. also because his wife was about to give birth. In addition. . It was created. It fortunately could be solved with techniques and information they acquired in the trainings promoted by the Disaster Campaign and Preparedness Programme. Suddenly.