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Dr. S. N. PandeyDevelopment Services Branch

21st June 2008

Self Help Groups and Development Alternatives in Bundelkhand

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Bundelkhand Region – here We are!

BUNDELKHAND BUNDELKHAND REGIONREGION

UTTAR PRADESH

MADHYA PRADESH

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Streams of activities

Community Institution Building

Natural Resource Management

Livelihood Enterprises

Networking and Convergence

Capacity Building

Leading to …. informed and empowered communities…..dignified and viable income generation

opportunities…..clean and healthy environment

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Approach

Participatory – not BENEFICIARIES but STAKEHOLDERS

Inclusive – one and all

Stakeholding – development partnerships

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What is an SHG?

Self Help Groups (SHGs) are one kind of Community Institution that are small informal associations of women created at grassroots level for the purpose of enabling members to benefit through mutual help, solidarity and joint responsibility.

The members are expected to make small savings and pursue group

enterprise activities. The group-based approach enable the poor

to accumulate capital by way of small savings and help

them to have easy access to formal credit facilities.

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Essential features of an SHGS.No Features Particulars

1 Organization Homogeneity in terms of socio economic status caste, age group,common identitity of activities etc

2 Nature of target group

Generally poor and weaker section of socity in rural area, particularly women

3 Management Selected/elected leaders or facilitator, holds meeting regularly, and maintain records

4 Common fund Created out of saving,interest earned on loan, donation,fees etc

5 Saving mobilization As per capacity of member Regular and fixed rate of saving

6 Loaning Decided by the purpose,purpose of loan for individuals include consumption, clearing outside debts,social,business ,agriculture etc,and loan for common production activities

7 Repayment period Generally lower than prescribed by the bank

8 Rate of interest Varies from 12 to 48%, interest rate determined by the members

9 Linkage with Banks Banks treats SHG as a borrowers.

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Growth Path of SHGs

0-6 Month

More than 80% meeting take placeat fixed time & place80% members attend every group meeting80%members save regularlySHGs open saving bank accountTheir account books are maintained regularlyMajority of members are aware of all rules of groupMajority of members understand programmes

philosphy &its objectives

7-12 Month

Some community action is started by SHGsMembers start taking internal loans from SHGs, members

show preference for small loans which are for consumption purposeFew SHGs obtain bank loan/CCL facilitySome members are taken loans for small IG activitiesGroup accounts are managed by SHG members/facilitatorSHG participate in few government schemesInformal networks of SHGs start emerging (Cluster,

federation)

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SHGs in Bundelkhand : Status and Potential

About 12-15000 SHGs in Bundelkhand (both UP and MP part with membership of about 144000-180000 and cumulative credit linkage of INR 7-8 cr.

Most of the SHGs are at imbecile state without any assured handholding.

Potential of about 50,000 more SHGs with credit absorption potential of 450 Cr.

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DA’s take on SHGs

Formation and nurturing of SHGs in direct geographical areas of operation

Support formation and nurturing of SHGs in partnership with other CSOs in other parts of Bundelkhand.

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SHGs – Direct Areas of Operation

Through …Three institutional clusters: TARAgrams – Orchha, Pahuj and Datia

Four operational clusters: Niwari, Orchha, Pahuj and Datia

In …3 districts – Tikamgarh, Jhansi and Datia

4 blocks – Niwari, Badagaon, Babina and Datia

115 villages (Niwari: 85, Badagaon:11 Babina:4 Datia:15)

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Status of SHGs across clusters

Niwari Orchha Pahuj Datia

Number of SHGs (413)

229 55 82 46

Membership (4454)

2428 616 836 506

Savings (Rs. 44.64 Lac)

Rs. 33.94 Lac Rs. 3.66 Lac Rs.3.84 Lac Rs. 3.20

Credit from Banks (Rs. 53.43 Lac)

Rs. 49.49 Lac Rs. 3.74 Lac - Rs. 0.20 Lac

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Supporting Projects

TEJSWANI:Location : Niwari & Orchha (Tikamgarh district)

Duration : 8 years (initial contract for 3 years)

No. of SHGs : 400 (includes strengthening of old SHGs), 300 new to be formed

Cost : Rs. 40.92 lac (Rs. 13.64 lac pa)

NABARD: formation of 250 SHG in Jhansi districtLocation : Baragaon & Babina (Jhansi District)

Duration : 2.5 years

No.of SHGs : 250 (82 formed, 168 remaining)

Cost : Rs. 7.5 Lakh

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3 years hence………..

413

593

793971

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Current 2009 2010 2011 Planned 2011Year

SHG Growth Trajectory: 2008-2011

Current 2009 2010 2011 Planned 2011

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3 years hence : visible shifts

971 SHGs with membership of about 10,500 members

Cumulative savings of about INR 1 Cr and bank credit of INR 3.5 – 4 Cr.

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SHG promotion in Partnership

Proposal submitted to NABARD for formation of 7000 SHGs (in 2 years time) in partnership with 14 CSOs (also PACS partners) in all the 7 districts of Bundelkhand from UP

NABARD approved formation of 1000 SHG (Rs. 35 Lac), proposals for other districts under consideration

14 CSOs will be BDC partners from UP, moving up the BDC strength from 5 to 19.

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2 years hence………..

2139

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2 years hence : visible shifts

9139 SHGs with membership of about 1.20 Lac members

Cumulative savings of about INR 5.76 Cr and bank credit of about INR 10 Cr.

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Thanks