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POVERTY REDUCTION STRATEGY TN

a. Micro Credit Micro

a. Micro Credit Micro credit schemes have succeeded in a significant way in many countries. In India also, these are showing signs of success although the progress may be different in different states. Micro credit is extended to the poor without the need for collateral. It is based more on his participation in the self-help groups. Many banks are now entering this market seeing this as a viable marketing option. Micro credit directed to poor is considered as part of retail banking. The success of the Kisan Credit Card scheme, launched in 1998-99, is an important dimension of micro credit. Extension of this scheme to the informal sector is now being undertaken. The concept of Self Help Groups promoted by NABARD for financing the poor by formal institutions and non-formal institutions was started in 1991-92. The Swarnajayanti Gram Swaryojana (SGSY) facilitates credit linkage with banks for self help groups in rural areas. The Tamil Nadu government provides a subsidy in the form of Revolving Fund (RF) of an amount of Rs. 10000 per SHG. Correspondingly, the banks provide cash credit of up to Rs. 30000 per group. This scheme was earlier made applicable only to rural SHGs. But in 2006-07, Government of Tamil Nadu has implemented the RF subsidy scheme in urban areas also. In 2008-09, the scheme has been extended to all eligible self help groups, totaling to about 1.50 lakh in number. Total number of SHGs is 3.67 lakh of which 1.07 lakh are based in urban areas. The loan repayment rate is 99 percent. Every year, nearly 25000 new SHGs are being formed. Appendix Table 6.1 gives details of physical and financial achievements of self help groups in Tamil Nadu. b. Micro Insurance As discussed in Chapter 2, there is considerable volatility in agricultural prices. Farmers are exposed to large fluctuations in output as well as prices, which leads to variations in agricultural incomes. The element of uncertainty in agriculture is recognised to be far higher than that in other sectors. Analysts say that there are four key aspects to making the micro insurance of the poor a viable business proposition. These relate to affordability, insurability, marketability and profitability. The insurance costs and the related premium need to be kept low in order to ensure affordability. This is one aspect where government subsidies have also been recommended, either directly to the poor for insurance or indirectly to the company/organisation offering insurance. The second aspect relates to risks in insurance. Predictability of the risk is an important aspect in determining its insurability as well as the corresponding premium. For any poor, most risks are high and relate to many aspects of his life. To reduce risks and make the 144

proposition more insurable, a group based approach rather than an individual based approach may reduce the costs of insurance. There are now a number of insurance and pension schemes although so far the approach has been uncoordinated. Table 6.10 presents a range of programs aimed at the unorganised sector, covering about 10 percent of the unorganized labour force for any given type of insurance. There is also a scheme for livestock insurance. This consists mainly of cattle insurance and is being implemented by the four public sector general insurance companies. Under various livestock insurance policies, cover is provided for the sum insured or the market value of the animal whichever is less. The animals are normally insured up to 100 percent of their market value. Table 6.10: Selected Insurance and Pension Programs for the Unorganised Sector Name of the Programme Estimated Type of Risk Covered Memberships Government Universal Health Insurance 1000 Health Central Welfare Funds (5)* 4500 (est) Health, education, housing, other Kerala Welfare Funds (55) 4900 Varies, all kinds Karnataka Labor Welfare Fund 675 Life, health Andhra Pradesh Labor Welfare Fund 1000 Life Tamil Nadu Construction Worker Welfare Fund 631 Life, health, pension, other Tamil Nadu Voluntary Health Service 125 Health Maharashtra Mahadi Workers Fund 150 Life, health, other West Bengal Provident Funds (2)*** 1800 Old age Non-governmental**** LIC - lBY Scheme 3570 Life UTI - Pension Scheme 100 Old age Yashivini - Karnataka 2100 Health Kamna Trust - Karnataka 14 Health Spandana 386 Life Shepherd 15 Life SEW A Gujarat 100 Life, health, pension, other People's Rural Health Promotion Scheme 75 ASA 66 Life and health Sources: Rajan (2004); Roth et. al., (2005); LIC (2006); NCEUS (2006). Notes: * includes the beedi, mica, limestone, iron ore and cine workers funds. * memberships are double counted in some cases since both groups and providers are shown here. *** includes both urban and rural provident funds. **** list is not exhaustive and excludes, among others, life and health insurance for ICICI clients. A National Agricultural Insurance Scheme (NAIS) was introduced from Rabi season of 1999-00, which replaced the earlier Comprehensive Crop Insurance Scheme 145

World Comparative Economic And Social Data
Police Stations - Tamil Nadu Police
N u m b e r o f S c h o o l s - DISE
Census 2011 population of Latur district
PDF: 1.0MB - Population Reference Bureau