Tips for Field Worker s Vol 2 - Vanbandhu Kalyan Yojana

Tips for Field Workers
directly to individuals. The groups then
disburse loans to individual members;
The project budget should include
provisions for separate transport
arrangements, or allowances, for bank
field staff;
The TNWD Project allows for flexible
savings by the group. At the same time,
it ensures that internal lending is not
linked to the amount saved;
Criteria governing the minimum savings
amount should keep in mind the
individual’s capacity to save;
Decisions on loan ceilings are best left to
the group;
Declaring dividends and paying interest on savings gives
the women a sense of achievement;
Encourage poor women, who are fearful of taking loans, to
join the group and slowly increase their risk taking capacity;
Allow members to withdraw small amounts from their
savings accounts. This encourages more women to
participate in group activities;
Groups and group leaders must be aware of the interest
rates charged by moneylenders and commercial banks
before establishing their own rates;
The TNWDC women’s groups offer differentiated
financial products (i.e. loans for those aspects not covered
by banks) against varying interest rates, fees, flexible
instalments and maturity periods, special services like
doorstep collection depending on loan size, etc.; and
The SHGs monitor the source of repayment to ensure
that group members do not resort to strategies
detrimental to the individual’s welfare when the need
for repayment occurs.
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Institutional Arrangements and Co-operation
The Indian Bank offered its vast resources and
institutionalised an efficient system; and
Co-operation from government authorities, line
departments and the principal implementing agencies
is important to ensure neutrality and minimise delays.