Self-help Groups as Financial Intermediaries in India ... - Sa-Dhan

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Holy CrossSocial ServiceCentre(HCSSC),Hazaribaghdistrict,Jharkhand andRanchi district,Bihar a.o.CARE-CREDITproject, Ranchi(Jharkhand)ImplementingNGOs:1.NBJK2.PRADANNGOpromoter forbank linkagewith stronglivelihoodsdevelopmentandempowermentprogrammeProjectimplementedthroughNGOs, banklinkage/savings andcredit forempowerment5 to 7yearsRs. 16,000direct costsplus Rs.4,575 overheadcosts4 years Rs. 13726(NBJK)Rs. 15356(PRADAN)Direct costs:Yr.1 – Rs. 5,000Yr. 2 – Rs. 3,000Yr. 3 – Rs. 2,500Yrs. 4 to 7 – Rs.5500Overheads:Yr. 1 – Rs. 1,200Yr. 2 - Rs. 900Yr. 3 - Rs. 750Yrs. 4 to 7 – Rs.1,725Includes onlycosts incurred atNGO level.1. Active in SHG development the area since 1989.2. Savings and credit entry point for developmentactivities such as irrigation, agriculture, education andincome generation activities with objective of women’sempowerment.3. Five stages of group development: (i) pre-formation1-3 months; (ii) formation 3-8 months; (iii) performing8-18 months; (iv) growth 18-24 months; and (v)expansion 24 months onwards.4. SHG federated into clusters of 10-15 SHGs forchannellising inputs, training and for cluster levelcollective action.5. SHGs pay for stationery and administration from thebeginning and for local accountants after three months.6. Most SHGs in undeveloped and inaccessible areas.1. Savings and credit project with differing approachadopted by the two partner NGOs. (Promotion only byPRADAN and financial intermediation by NBJK.)2. SHGs formed into non-financial unregisteredcluster-level bodies by PRADAN through groupcontribution.3. PRADAN methodology similar to PRADAN,HazaribaghSource: 1. Rough estimates and notes provided during interviews at BASIX, OUTREACH, MYRADA, PRADAN (Hazaribagh), Holy CrossSSC and with former Chief Executive UNDP SAPAP Project.2. Reworked from estimates of historical costs prepared from project data by CARE-India staff of CREDIT and CASHE project.40
Table 4.2Scales of Support Available to NGOs for SHG PromotionAgency/Programme1. National Bank for Agricultureand Rural Development(NABARD)2. Council for the Advancementand Promotion of Agricultural andRural Technology (CAPART)3. Swa-Shakti Programme(7 states)4. Swarnajayanti Gram SwarozgarYojana (SGSY) ProgrammeAmount of support (Rs. Detailsper SHG promoted)2,000 25% at time of initiation ofSHG25% on savings linkage50% on credit linkage9,000 Rs. 3,000 per year for threeyears(includes honorarium for staff@ Rs. 600 per year)10,000 (Additional sum of Rs. 2,000available when trainingorganised by NGOs)10,000 20% at beginning of formationof SHG30% after group qualifies forSGSY revolving fund40% after group takes upeconomic activity10% after start of economicactivity if group is doing wellRemarks1. Covers only additional costof facilitation and training inmethodology of SHG-banklinkage2. Covers staff costs,conveyance, stationery andtrainingCosts covered include costs ofidentification and survey ofvillages, training, exposure andco-learning processes, books ofaccounts, savings and creditlinkage.World Bank funded project forwomen’s empowerment.Excludes training, including onmicroenterprise, which isorganised centrally.This revamped version ofDWCRA provides for supportto NGOs promoting SHGsunder the programme. Noinformation of any study NGOsavailing this facility.41
Page 4 and 5: List of AcronymsAIAMEDAIMSAPMASASAA
Page 6 and 7: EXECUTIVE SUMMARY1. Introduction1.1
Page 8 and 9: self-management by members and scal
Page 10 and 11: 6.4 On the other hand field reports
Page 12 and 13: sustainable self-help groups. An in
Page 14 and 15: 2. DEVELOPMENT OF SELF-HELP GROUPS
Page 16 and 17: average loan per SHG was Rs. 18,227
Page 18 and 19: • training and sensitising bank o
Page 20 and 21: organizational structure and the na
Page 22 and 23: Table 2.1 (contd.)S.No.ParticularsN
Page 24 and 25: the SHG from banks starts from pari
Page 26 and 27: • In either situation SHGs can co
Page 28 and 29: 3.2.3 SHG Federations Linked to MF
Page 32 and 33: 3.4 ConclusionThis section served t
Page 34 and 35: MYRADA,Karnatakaa.o.OUTREACH,Karnat
Page 36 and 37: Name ofNGO/StateDHANFoundation,Tami
Page 38 and 39: However, for a comparative analysis
Page 40 and 41: linkages with credit and savings 34
Page 42 and 43: out of 5,153 SHGs covered under the
Page 44 and 45: eceived revolving fund grants, cost
Page 46 and 47: the high level of educated unemploy
Page 48 and 49: CARE-CASHE Project(A.P.)(implemente
Page 52 and 53: Agency/Programme5. Rashtriya Mahila
Page 54 and 55: microfinance intermediary 41 . Unde
Page 56 and 57: On the other hand, there is evidenc
Page 58 and 59: infrastructural and other constrain
Page 60 and 61: would not be possible while working
Page 62 and 63: through the SHG as a basis to sourc
Page 64 and 65: the programme is particularly probl
Page 66 and 67: It is possible to query the methodo
Page 68 and 69: world. Other partners from India ar
Page 70 and 71: RECOMMENDATIONSIt is not clear what
Page 72 and 73: REFERENCESAIAMED (2000), Good Pract
Page 75: Mahajan, Vijay and G. Nagasri (1999
Page 79 and 80: Appendix 2: Types of SHGsTypes of S
Page 81 and 82: Appendix 3 (contd.)OrganisationSIDB
Page 83 and 84: 4. Trade based Group model: The est
Page 85 and 86: Appendix 5S.No.1. JOTHI 92,077.00
Page 87: Appendix 6: Stages of Evolution of

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