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

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(i)Retail NGO-MFIsDuring the last decade retail NGO-MFIs have come to dominate the retail service landscapewith the most widely practised service model being the SHG. Most of the retail NGO-MFIschoose to either get credit linkages established through local branches of banks or get creditdirectly to later on-lend the funds to SHGs.(ii)SHG FederationsThe several forms of SHG federations make it difficult to classify their operating featuresaround one simple model. There are important variants even with those models. In some SHGfederations the next level from the SHGs is the cluster which gathers SHGs from ageographic unit together and in turn federates them into a larger unit called federations.In some instances the retails services are undertaken by SHGs in others by the cluster and instill others by the federations. The point of service in this structure finally determines thepoint of interface with the local bank. During the past few years community-basedorganizations (CBOs) are emerging which are directly borrowing from either government ornon-government on-lenders and are well on their way to becoming full-fledged MFIs. Thesevariations result from the strategic choices the promoting NGOs make in mobilizing theSHGs.V. MACSAndhra Pradesh (A. P.) enacted the Mutually-Aided Cooperative Societies (MACS) Act in1995. Cooperatives formed under this Act are largely immune from government interventionsin their affairs such as fund raising, governance, etc. and a number of cooperatives have beenformed under this act. Over 2,000 MACS were reportedly registered in A. P. recently.According to the Cooperative Development Forum (CDF), Hyderabad, 234 thrift cooperativesocieties (with 59,000 rural men and women members) promoted by CDF were registered inWarangal district of A.P. alone under the MACS Act till December 1999. These MACSprovide savings, borrowing and loan insurance services to their members.Following Andhra Pradesh, three states – Bihar, Madhya Pradesh and Jammu and Kashmirhave enacted similar MACS Acts. However they are considered by many to be weaker formsof the AP MACS Act.In Bihar out of 667 societies formed under the Bihar Self-Supporting Cooperative SocietiesAct, 1996, which has similar provisions, only 14 were credit cooperatives.In Tamil Nadu, a neighbouring state of A. P., the cooperative act allows for a great deal ofgovernment intervention. The cooperative cannot even enact its own by-laws and must adoptby-laws given by the state of Tamil Nadu which were formulated in pre-independent Indiawhen the cooperative was an extension of the government. In addition, Tamil Nadu has itsown conservative Societies Act which gives the government the power, under certaincircumstances, to take control of an organization registered under the Act.74
Appendix 5S.No.1. JOTHI 92,077.00 • SavingsMembership fee - 9002. OM SHAKTHI 70,696.00Fine - 1503. NETHRA 1,33,830.00 • DonationsCLA loan Interest/Service charge - 7,3444. SARASWATHY 81,302.00(FF, Agri. working capital, etc.)5. NAGAMANI 39,280.00 • InterestTraining/workshop service charge - 2,8456. SANTOSHIMATHA 37,778.00MARGA-(SHG Training, PRA, etc.)7. UMA MAHESHWARI 96,088.00 • FinesDHARSHIInsurance - 4,0568. PAVANJOTHI 32,882.50SEVA(Crop, Animal Insurance)9. PARASAKTHI 17,319.00 • ContributionsSANGHAIncome Generation - 3,15110. INDIRA 21,031.00(CLA)(Mayo seedlings)• Towards program( estd. 20.04.96)Exposure service charge - 900cost(Pondy)Best CLA record - 2,000TOTAL Rs. 6,22,283.00 • Admission fee (Bank Interest) - 701Name of the SHGs Common Fund Source from SHGs Sources as on March’2001FUNCTIONS OF CLA• Collect and consolidate requirements of agriculture from members• Plan development programmes e.g watershed• Solve SHGs problems• Purchase and supply to SHGs in bulk• Appraise and recommend to OUTREACH for funding• Represent villager members needs e.g. electricity, water etc.• Arrange and organize for SHGs training (skill training)• Represents and lobbies with institutions• Feeds information and news, e.g. Government programmes such asimmunization etc.• Promotion of individual and group enterprisesLoan from OUTREACHEnterprises development – F.F. - 4,93,000Agri-seed & Fertilizer purchase - 72,500S.B. A/c No. 2477Holding of Groundnut - 1,73,000VIJAYA BANK, HOSUR Agro-service center shed - 1,00,000Agro-service center - 32,725Seed working capital - 3,30,000TOTAL Rs. - 11,33,332* Total No. of Loan issued by SHGs* Total loan amount Rs.: 721: 15,99,565.00
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List of AcronymsAIAMEDAIMSAPMASASAA
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EXECUTIVE SUMMARY1. Introduction1.1
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self-management by members and scal
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6.4 On the other hand field reports
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sustainable self-help groups. An in
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2. DEVELOPMENT OF SELF-HELP GROUPS
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average loan per SHG was Rs. 18,227
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• training and sensitising bank o
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organizational structure and the na
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Table 2.1 (contd.)S.No.ParticularsN
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the SHG from banks starts from pari
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• In either situation SHGs can co
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3.2.3 SHG Federations Linked to MF
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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 50 and 51: Holy CrossSocial ServiceCentre(HCSS
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: 4. Trade based Group model: The est
Page 87: Appendix 6: Stages of Evolution of
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Self-help Groups as Financial Intermediaries in India ... - Sa-Dhan

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