This document provides details about a study conducted on financial management in community-based organizations of Jeevika. It includes an introduction to Jeevika's organizational structure and objectives of the study. The methodology involved qualitative research through interviews and examination of records. Key findings include calculations of recovery percentage, velocity of lending, and loan distribution for different community-based organizations like CLFs, VOs and SHGs. It was found that some organizations maintained records better than others and had higher recovery rates and more even loan distributions. The document concludes with suggestions and recommendations.
The document discusses a study on empowerment of women through self-help groups in Anantapur district of Andhra Pradesh, India. The objectives of the study were to understand the concept of empowerment and analyze the impact of self-help groups on women's empowerment. Key findings included that over 53,000 self-help groups were operating in the district. Most women joined for income generation and availed loans for productive purposes. The study found that self-help group membership improved women's socioeconomic status, living conditions, and empowerment. It provided recommendations such as increasing awareness, ensuring regular group meetings, and improving access to markets, training, and credit.
Self Help Group (SHG) Movement in India has been recognized as an effective strategy for mobilization and empowerment of rural people, particularly poor women and other marginalized groups.
This document provides an introduction to self-help groups (SHGs) in India. SHGs are informal associations of poor people who come together to improve their living conditions through collective efforts. They are formed to tackle problems related to poverty, illiteracy, lack of skills and access to formal credit that individuals cannot address alone. The goals of SHGs are to build trust between rural poor communities and bankers and encourage banking in hard to reach populations. SHGs function by members contributing small regular savings to a common fund and taking short term loans for economic activities. This empowers women and improves access to financial services, consumption, housing, health and government programs for marginalized groups. However, challenges remain regarding skills development, patriarch
Self-help groups (SHGs) were introduced in India to promote women's empowerment and self-sufficiency. SHGs are small community-based organizations composed of 10-20 rural poor women who voluntarily save small amounts of money together. They use their pooled savings to provide interest-free loans to members for purposes such as meeting emergency needs or starting small businesses. The objectives of SHGs are to provide women with a platform, job training, decision making skills, access to collateral-free loans, and increased confidence. Today, SHGs have become one of the largest microfinance programs in the world, helping to alleviate poverty and empower rural women economically and socially.
The document summarizes the origins and functions of the National Bank for Agriculture and Rural Development (NABARD) in India. It was established in 1982 to provide credit and other support services to promote rural and agricultural development. Key points include that NABARD provides refinancing to rural banks, coordinates rural development programs, and promotes initiatives like microfinance and support for farmers through training centers.
The document provides information on the genesis and functions of the National Bank for Agriculture and Rural Development (NABARD) in India. Some key points:
- NABARD was established in 1982 to provide credit and related services to boost rural development in India. It was formed based on recommendations from the Committee to Review the Arrangements For Institutional Credit for Agriculture and Rural Development.
- NABARD's main functions include providing direct finance, refinance support, and developmental activities like institutional development, financial inclusion programs, and research.
- It works to promote sustainable agriculture, rural prosperity, and equitable development through various credit schemes and programs focused on areas like farming, off-farm activities, housing, renewable energy
NABARD is India's apex development bank that provides credit and related services to rural areas. It was established in 1982 to implement the National Bank for Agriculture and Rural Development Act. NABARD replaced previous institutions and aims to promote rural prosperity through credit provision, institutional development, and monitoring client banks. It works to increase agriculture and rural credit through refinancing banks and supporting rural infrastructure. NABARD also undertakes supervisory functions for cooperative banks and regional rural banks.
Role of self help groups in empowerment of women in maharashtraDr. Deepak Raverkar
Self-help groups (SHGs) were inspired by Muhammad Yunus in 1979 to empower rural poor through savings and credit groups. SHGs have played a key role in women's empowerment in India by providing microfinancing, increasing incomes, and allowing for greater participation in household and community decisions. The number of SHGs in India grew rapidly from 620 in 1993-94 to over 6.9 million in 2009-10, with over Rs. 14,000 crores loaned to groups. In Maharashtra, the number of SHGs increased from 379,607 in 2007-08 to over 827,047 in 2011-12, demonstrating their success in empowering women economically and socially. However, a major
The document discusses a study on empowerment of women through self-help groups in Anantapur district of Andhra Pradesh, India. The objectives of the study were to understand the concept of empowerment and analyze the impact of self-help groups on women's empowerment. Key findings included that over 53,000 self-help groups were operating in the district. Most women joined for income generation and availed loans for productive purposes. The study found that self-help group membership improved women's socioeconomic status, living conditions, and empowerment. It provided recommendations such as increasing awareness, ensuring regular group meetings, and improving access to markets, training, and credit.
Self Help Group (SHG) Movement in India has been recognized as an effective strategy for mobilization and empowerment of rural people, particularly poor women and other marginalized groups.
This document provides an introduction to self-help groups (SHGs) in India. SHGs are informal associations of poor people who come together to improve their living conditions through collective efforts. They are formed to tackle problems related to poverty, illiteracy, lack of skills and access to formal credit that individuals cannot address alone. The goals of SHGs are to build trust between rural poor communities and bankers and encourage banking in hard to reach populations. SHGs function by members contributing small regular savings to a common fund and taking short term loans for economic activities. This empowers women and improves access to financial services, consumption, housing, health and government programs for marginalized groups. However, challenges remain regarding skills development, patriarch
Self-help groups (SHGs) were introduced in India to promote women's empowerment and self-sufficiency. SHGs are small community-based organizations composed of 10-20 rural poor women who voluntarily save small amounts of money together. They use their pooled savings to provide interest-free loans to members for purposes such as meeting emergency needs or starting small businesses. The objectives of SHGs are to provide women with a platform, job training, decision making skills, access to collateral-free loans, and increased confidence. Today, SHGs have become one of the largest microfinance programs in the world, helping to alleviate poverty and empower rural women economically and socially.
The document summarizes the origins and functions of the National Bank for Agriculture and Rural Development (NABARD) in India. It was established in 1982 to provide credit and other support services to promote rural and agricultural development. Key points include that NABARD provides refinancing to rural banks, coordinates rural development programs, and promotes initiatives like microfinance and support for farmers through training centers.
The document provides information on the genesis and functions of the National Bank for Agriculture and Rural Development (NABARD) in India. Some key points:
- NABARD was established in 1982 to provide credit and related services to boost rural development in India. It was formed based on recommendations from the Committee to Review the Arrangements For Institutional Credit for Agriculture and Rural Development.
- NABARD's main functions include providing direct finance, refinance support, and developmental activities like institutional development, financial inclusion programs, and research.
- It works to promote sustainable agriculture, rural prosperity, and equitable development through various credit schemes and programs focused on areas like farming, off-farm activities, housing, renewable energy
NABARD is India's apex development bank that provides credit and related services to rural areas. It was established in 1982 to implement the National Bank for Agriculture and Rural Development Act. NABARD replaced previous institutions and aims to promote rural prosperity through credit provision, institutional development, and monitoring client banks. It works to increase agriculture and rural credit through refinancing banks and supporting rural infrastructure. NABARD also undertakes supervisory functions for cooperative banks and regional rural banks.
Role of self help groups in empowerment of women in maharashtraDr. Deepak Raverkar
Self-help groups (SHGs) were inspired by Muhammad Yunus in 1979 to empower rural poor through savings and credit groups. SHGs have played a key role in women's empowerment in India by providing microfinancing, increasing incomes, and allowing for greater participation in household and community decisions. The number of SHGs in India grew rapidly from 620 in 1993-94 to over 6.9 million in 2009-10, with over Rs. 14,000 crores loaned to groups. In Maharashtra, the number of SHGs increased from 379,607 in 2007-08 to over 827,047 in 2011-12, demonstrating their success in empowering women economically and socially. However, a major
Self-help groups (SHGs), also called sanghas, are voluntary associations of people that function democratically to achieve collective goals. Organizing people with disabilities (PWDs) into sanghas unites and empowers them by allowing them to support each other, access resources, and advocate for their rights. The overall purpose of SHGs is to empower PWDs through collective action and responsibility for their own development in order to improve their quality of life. Key tasks to sustain sanghas include strengthening solidarity, determining goals and rules, accessing government programs, and promoting livelihood and advocacy activities.
The document discusses the role of various village institutions in rural development in India. It outlines institutions like Panchayati Raj, NABARD, cooperatives, self-help groups, farmer interest groups, and schools. These institutions aim to generate employment, improve living conditions, build infrastructure, and promote economic activities to boost rural development. Effective implementation of these institutions can help transform rural communities.
The document summarizes the genesis and functions of the National Bank for Agriculture and Rural Development (NABARD) in India. Key points:
- NABARD was established in 1982 to provide credit and other support services to promote rural development and uplift agriculture.
- It provides refinancing to banks and cooperatives for lending to the farm and non-farm sectors. It also directly finances food processing and rural infrastructure projects.
- In addition to financial functions, NABARD works on development programs related to agriculture, non-farm livelihoods, financial inclusion, and strengthening cooperatives. It also regulates and supervises rural banks.
The document discusses guidelines for promoting gender equality among partners of Concern Worldwide India. It provides context on CWI's work to reduce poverty and inequality in India. It outlines an equality audit conducted with six partners in Odisha to identify challenges and opportunities to promote equality in organizational systems, management, programs and practices. The audit examined issues like gender inequalities, caste discrimination and marginalization of tribal communities in Indian society, with the goal of helping CWI and partners better include the most vulnerable groups.
Role of Corporate in promoting women empowerment through SHGJayanta Chakraborti
Corporates have played a key role in promoting women empowerment through self-help groups (SHGs) in several ways: (1) Hindustan Unilever launched Project Shakti to distribute products and provide livelihood opportunities to over 70,000 women entrepreneurs; (2) ITC supports marginal women farmers and forms waste management groups to provide sustainable livelihoods; (3) ICICI Bank aims to empower over 2 million women through SHG loans totaling $2.5 billion. When aligned with business goals or as part of corporate social responsibility, SHGs have allowed corporates to boost women's economic participation and decision-making power in their families and communities.
NABARD - National Bank For Agriculture And Rural DevelopmentSanket Gaikwad
National Bank for Agriculture and Rural Development is an apex development bank in India, headquartered at Mumbai with branches all over India.
Founded: 12 July 1982
Headquarters: Mumbai
Sustainability of Self Help Groups in India Two AnalysesDr Lendy Spires
This document summarizes two studies that analyze the financial sustainability of self-help groups (SHGs) in India. SHGs are small, community-based savings and credit groups primarily made up of poor women. The first study examines five SHG programs across different Indian states and finds that many well-run programs are achieving financial sustainability and covering their costs while also reaching very poor clients. The second study proposes a methodology for designing financially self-sufficient SHG programs and applies it to four leading Indian programs, finding they can cover their support service costs without ongoing subsidies. Both studies suggest that strong SHG programs that provide adequate support services have the potential to be replicated in a sustainable manner.
1. DRDA, NREGS, CSWB, SSWB, and NABARD are all Indian organizations that work to support rural development and alleviate poverty.
2. DRDA is a district-level rural development agency that oversees implementation of rural programs. NABARD is an apex development bank that facilitates credit flow for agriculture and rural development.
3. CSWB and SSWB provide welfare services, develop infrastructure for NGOs, and fund programs for women and children.
“Emergence and Activities of Self-Help Group (SHG)-A Great Effort and Impleme...iosrjce
The budding social consciousness from corner to corner of the globe has brought a number of issues
to the fore among which gender impartiality and empowerment of women are very noteworthy. Discrimination
against women in the form of male-female segregation reflects the core of the gender-biased structure. The
education is the biggest therapeutic power and the rise in the levels of education which nourishes progressive
stance and the beginning of industrialization and modernization have effected a sea change in the attitudes and
thinking prototype of the citizens. The empowerment is not fundamentally political single-handedly in fact;
political empowerment will not be successful in the deficiency of economic, socio-cultural and environmental
empowerment. Women empowerment is a progression in which women confront the presented norms and
culture, to efficiently encourage their well being. The involvement of women in Self Help Groups (SHGs) made a
momentous impact on their empowerment both in social and economical aspects. This study addresses women
empowerment as well as rural development through self help groups of Khejuri CD Blocks in Purba Medinipur
district of West Bengal. The information requisite for the study has been collected from both the primary and
secondary sources. A multistage random sampling method has been followed. Average and percentage analysis
was accepted out to draw significant interpretation of the results. Factor analysis was used to measure the
relationship between the observed variables. The outcome of the study revealed that the SHGs have had greater
impact on both economic and social aspects of the beneficiaries.
National Bank for Agricultural and Rural Development (NABARD) is India's apex development bank. It has the mandate to facilitate credit flow for agriculture and rural development. NABARD provides short, medium, and long term credit, regulates and supervises cooperative banks and regional rural banks, and undertakes development activities like minor irrigation projects, soil conservation, and research. It aims to strengthen rural credit delivery to support over 50% of rural credit needs in agriculture and allied sectors.
Role of Self-Help Groups in Empowering Rural Women: A case study on selected ...iosrjce
Micro finance is emerging as a powerful tool for poverty alleviation in India. This approach has
recognition in India after the launch of SHGs and Bank linkage programme by NABARD in the year 1992.
According to United Nations, micro finance institutions are the basic provider of small savings, micro credit
and other basic financial services to poor and marginalised section like women. Despite substantial
contributions of women to both household and national economy, their contributions are not recognised in the
society. Rapid progress in SHGs and Bank linkage model has now turned into an empowerment movement
among women in the country. From various empirical studies, it is found that micro finance through SHGs and
Bank linkage model has enabled the members of SHGs to improve their socio-economic status. It also improves
family savings, decision making process, self confidence among women section of our society. Micro finance is
also necessary to overcome social exploitation and create confidence for self reliance among rural women and
poor section of our society. Apart from the informal financial institutions, the formal and semi formal sectors
also are taking much interest in providing micro finance to rural women in Assam. These financial institutions
not only provide small savings and micro credit to women but bringing them together in organised banking
sector. This paper highlights that micro finance through SHGs has a positive role in income, savings and
investment of women in Rani Block of Kamrup District of Assam
The document discusses the role of non-governmental organizations (NGOs) in supporting self-help groups (SHGs) in India. It notes that NGOs work to form SHGs, provide training, help obtain loans, and act as a link between SHGs and banks. The document also outlines benefits of the SHG model including improved access to credit for women and discipline in loan repayment. However, it mentions challenges such as lack of follow up, skills, and market access for SHG products. The document recommends that NGOs focus on leadership development, business strategies, and market-oriented approaches to strengthen SHGs.
NABARD is the apex development bank in India that was established in 1982 to facilitate credit flow in rural areas and promote rural prosperity. It works to develop sustainable rural areas through financial and non-financial programs and innovations. NABARD provides refinancing to rural lending institutions, regulates cooperative banks and RRBs, and promotes research and training in rural banking and development. Some of its key programs and milestones include self-help groups, rural infrastructure development, watershed development, and programs to attract rural youth and support rural women entrepreneurs. NABARD faces challenges like inadequate finances, high non-performing loans, regional imbalances, and lack of coordination with other institutions.
The document discusses India's Panchayati Raj system of local self-government. It describes how the system provides for three levels of local administration: village, taluk, and district. At the village level, the Gram Panchayat is responsible for activities like health, sanitation, education, and village industries. Above the village level are the Taluk Panchayat and Zilla Panchayat, which handle administrative functions over larger areas. The document also discusses municipal local bodies in cities and towns, including municipalities and municipal corporations.
The study has been summarized in the form of a presentation so that others can understand its relevance. It is really important to look for ways to empower women through creative and innovative entrepreneurial ventures.
Empowering rural women all the way through self help groupsiaemedu
This document summarizes a study on self-help groups (SHGs) and their role in economically empowering rural women in South Tamil Nadu, India. The study analyzed data from 134 women across 20 SHGs. It found that after joining SHGs, women's monthly incomes increased as did their household expenditures and savings. SHGs also effectively provided access to credit for rural economic activities. Most women repaid loans on time. The study concluded that SHGs in South Tamil Nadu have been very successful in promoting women's economic empowerment and development in rural areas.
The document summarizes the administrative organization and constitution of district panchayats, block panchayats, and gram panchayats in India. It outlines the composition, functions, sources of income, and organization of each tier of local government. District panchayats are at the apex level and oversee multiple block panchayats. Block panchayats are the intermediate tier and oversee multiple gram panchayats, which constitute the lowest and most local level of governance at the village level. Key functions of each include rural development planning, infrastructure projects, education, healthcare, welfare programs, and implementing central and state government schemes.
NABARD plays a key role in India's rural development through various financial and developmental functions. It provides short-term and long-term refinance to banks and cooperatives to boost agricultural and rural development. It also engages in direct financing. Additionally, NABARD plays an important developmental role through institutional development, research, and promoting financial inclusion. It has contributed significantly to increasing agricultural production and rural prosperity in India since its establishment.
- Meena Devi was from a poor family that struggled to meet basic needs through small-scale farming.
- She joined a JEEVIKA self-help group in 2008 and took on leadership roles, using loans to start a dairy business.
- This improved her family's economic situation and allowed investments in her children's education and health. She has become a model of success for her community through her hard work.
Microfinance provides loans, savings, and other financial services to poor individuals. It originated in the 1970s in Bangladesh and combines strengths of formal and informal credit systems. NGOs and organizations like NABARD, RMK, and SIDBI regulate microfinance institutions (MFIs) in India and provide funding. MFIs aim to improve lives of poor through financial access and self-employment opportunities. Self-help groups (SHGs) are important for microfinance, allowing members to save, take loans, and start businesses.
National Rural Livelihood Mission (NRLM) : An OverviewSayan Ghosh
National Rural Livelihood Mission (NRLM) is a poverty alleviation project implemented by the Ministry of Rural Development, Government of India. This scheme is focused on promoting self-employment and the organization of the rural poor. The basic idea behind this program is to organize the poor into SHG (Self Help Groups) groups and make them capable of self-employment. In 1999 after restructuring Integrated Rural Development Programme(IRDP), Ministry of Rural Development (MoRD) launched Swarnajayanti Grameen Swarojgar Yojana (SGSY) to focus on promoting self-employment among the rural poor. SGSY is now remodeled to form NRLM thereby plugging the shortfalls of the SGSY program. This PPT helps you to know about NRLM briefly.
Self-help groups (SHGs), also called sanghas, are voluntary associations of people that function democratically to achieve collective goals. Organizing people with disabilities (PWDs) into sanghas unites and empowers them by allowing them to support each other, access resources, and advocate for their rights. The overall purpose of SHGs is to empower PWDs through collective action and responsibility for their own development in order to improve their quality of life. Key tasks to sustain sanghas include strengthening solidarity, determining goals and rules, accessing government programs, and promoting livelihood and advocacy activities.
The document discusses the role of various village institutions in rural development in India. It outlines institutions like Panchayati Raj, NABARD, cooperatives, self-help groups, farmer interest groups, and schools. These institutions aim to generate employment, improve living conditions, build infrastructure, and promote economic activities to boost rural development. Effective implementation of these institutions can help transform rural communities.
The document summarizes the genesis and functions of the National Bank for Agriculture and Rural Development (NABARD) in India. Key points:
- NABARD was established in 1982 to provide credit and other support services to promote rural development and uplift agriculture.
- It provides refinancing to banks and cooperatives for lending to the farm and non-farm sectors. It also directly finances food processing and rural infrastructure projects.
- In addition to financial functions, NABARD works on development programs related to agriculture, non-farm livelihoods, financial inclusion, and strengthening cooperatives. It also regulates and supervises rural banks.
The document discusses guidelines for promoting gender equality among partners of Concern Worldwide India. It provides context on CWI's work to reduce poverty and inequality in India. It outlines an equality audit conducted with six partners in Odisha to identify challenges and opportunities to promote equality in organizational systems, management, programs and practices. The audit examined issues like gender inequalities, caste discrimination and marginalization of tribal communities in Indian society, with the goal of helping CWI and partners better include the most vulnerable groups.
Role of Corporate in promoting women empowerment through SHGJayanta Chakraborti
Corporates have played a key role in promoting women empowerment through self-help groups (SHGs) in several ways: (1) Hindustan Unilever launched Project Shakti to distribute products and provide livelihood opportunities to over 70,000 women entrepreneurs; (2) ITC supports marginal women farmers and forms waste management groups to provide sustainable livelihoods; (3) ICICI Bank aims to empower over 2 million women through SHG loans totaling $2.5 billion. When aligned with business goals or as part of corporate social responsibility, SHGs have allowed corporates to boost women's economic participation and decision-making power in their families and communities.
NABARD - National Bank For Agriculture And Rural DevelopmentSanket Gaikwad
National Bank for Agriculture and Rural Development is an apex development bank in India, headquartered at Mumbai with branches all over India.
Founded: 12 July 1982
Headquarters: Mumbai
Sustainability of Self Help Groups in India Two AnalysesDr Lendy Spires
This document summarizes two studies that analyze the financial sustainability of self-help groups (SHGs) in India. SHGs are small, community-based savings and credit groups primarily made up of poor women. The first study examines five SHG programs across different Indian states and finds that many well-run programs are achieving financial sustainability and covering their costs while also reaching very poor clients. The second study proposes a methodology for designing financially self-sufficient SHG programs and applies it to four leading Indian programs, finding they can cover their support service costs without ongoing subsidies. Both studies suggest that strong SHG programs that provide adequate support services have the potential to be replicated in a sustainable manner.
1. DRDA, NREGS, CSWB, SSWB, and NABARD are all Indian organizations that work to support rural development and alleviate poverty.
2. DRDA is a district-level rural development agency that oversees implementation of rural programs. NABARD is an apex development bank that facilitates credit flow for agriculture and rural development.
3. CSWB and SSWB provide welfare services, develop infrastructure for NGOs, and fund programs for women and children.
“Emergence and Activities of Self-Help Group (SHG)-A Great Effort and Impleme...iosrjce
The budding social consciousness from corner to corner of the globe has brought a number of issues
to the fore among which gender impartiality and empowerment of women are very noteworthy. Discrimination
against women in the form of male-female segregation reflects the core of the gender-biased structure. The
education is the biggest therapeutic power and the rise in the levels of education which nourishes progressive
stance and the beginning of industrialization and modernization have effected a sea change in the attitudes and
thinking prototype of the citizens. The empowerment is not fundamentally political single-handedly in fact;
political empowerment will not be successful in the deficiency of economic, socio-cultural and environmental
empowerment. Women empowerment is a progression in which women confront the presented norms and
culture, to efficiently encourage their well being. The involvement of women in Self Help Groups (SHGs) made a
momentous impact on their empowerment both in social and economical aspects. This study addresses women
empowerment as well as rural development through self help groups of Khejuri CD Blocks in Purba Medinipur
district of West Bengal. The information requisite for the study has been collected from both the primary and
secondary sources. A multistage random sampling method has been followed. Average and percentage analysis
was accepted out to draw significant interpretation of the results. Factor analysis was used to measure the
relationship between the observed variables. The outcome of the study revealed that the SHGs have had greater
impact on both economic and social aspects of the beneficiaries.
National Bank for Agricultural and Rural Development (NABARD) is India's apex development bank. It has the mandate to facilitate credit flow for agriculture and rural development. NABARD provides short, medium, and long term credit, regulates and supervises cooperative banks and regional rural banks, and undertakes development activities like minor irrigation projects, soil conservation, and research. It aims to strengthen rural credit delivery to support over 50% of rural credit needs in agriculture and allied sectors.
Role of Self-Help Groups in Empowering Rural Women: A case study on selected ...iosrjce
Micro finance is emerging as a powerful tool for poverty alleviation in India. This approach has
recognition in India after the launch of SHGs and Bank linkage programme by NABARD in the year 1992.
According to United Nations, micro finance institutions are the basic provider of small savings, micro credit
and other basic financial services to poor and marginalised section like women. Despite substantial
contributions of women to both household and national economy, their contributions are not recognised in the
society. Rapid progress in SHGs and Bank linkage model has now turned into an empowerment movement
among women in the country. From various empirical studies, it is found that micro finance through SHGs and
Bank linkage model has enabled the members of SHGs to improve their socio-economic status. It also improves
family savings, decision making process, self confidence among women section of our society. Micro finance is
also necessary to overcome social exploitation and create confidence for self reliance among rural women and
poor section of our society. Apart from the informal financial institutions, the formal and semi formal sectors
also are taking much interest in providing micro finance to rural women in Assam. These financial institutions
not only provide small savings and micro credit to women but bringing them together in organised banking
sector. This paper highlights that micro finance through SHGs has a positive role in income, savings and
investment of women in Rani Block of Kamrup District of Assam
The document discusses the role of non-governmental organizations (NGOs) in supporting self-help groups (SHGs) in India. It notes that NGOs work to form SHGs, provide training, help obtain loans, and act as a link between SHGs and banks. The document also outlines benefits of the SHG model including improved access to credit for women and discipline in loan repayment. However, it mentions challenges such as lack of follow up, skills, and market access for SHG products. The document recommends that NGOs focus on leadership development, business strategies, and market-oriented approaches to strengthen SHGs.
NABARD is the apex development bank in India that was established in 1982 to facilitate credit flow in rural areas and promote rural prosperity. It works to develop sustainable rural areas through financial and non-financial programs and innovations. NABARD provides refinancing to rural lending institutions, regulates cooperative banks and RRBs, and promotes research and training in rural banking and development. Some of its key programs and milestones include self-help groups, rural infrastructure development, watershed development, and programs to attract rural youth and support rural women entrepreneurs. NABARD faces challenges like inadequate finances, high non-performing loans, regional imbalances, and lack of coordination with other institutions.
The document discusses India's Panchayati Raj system of local self-government. It describes how the system provides for three levels of local administration: village, taluk, and district. At the village level, the Gram Panchayat is responsible for activities like health, sanitation, education, and village industries. Above the village level are the Taluk Panchayat and Zilla Panchayat, which handle administrative functions over larger areas. The document also discusses municipal local bodies in cities and towns, including municipalities and municipal corporations.
The study has been summarized in the form of a presentation so that others can understand its relevance. It is really important to look for ways to empower women through creative and innovative entrepreneurial ventures.
Empowering rural women all the way through self help groupsiaemedu
This document summarizes a study on self-help groups (SHGs) and their role in economically empowering rural women in South Tamil Nadu, India. The study analyzed data from 134 women across 20 SHGs. It found that after joining SHGs, women's monthly incomes increased as did their household expenditures and savings. SHGs also effectively provided access to credit for rural economic activities. Most women repaid loans on time. The study concluded that SHGs in South Tamil Nadu have been very successful in promoting women's economic empowerment and development in rural areas.
The document summarizes the administrative organization and constitution of district panchayats, block panchayats, and gram panchayats in India. It outlines the composition, functions, sources of income, and organization of each tier of local government. District panchayats are at the apex level and oversee multiple block panchayats. Block panchayats are the intermediate tier and oversee multiple gram panchayats, which constitute the lowest and most local level of governance at the village level. Key functions of each include rural development planning, infrastructure projects, education, healthcare, welfare programs, and implementing central and state government schemes.
NABARD plays a key role in India's rural development through various financial and developmental functions. It provides short-term and long-term refinance to banks and cooperatives to boost agricultural and rural development. It also engages in direct financing. Additionally, NABARD plays an important developmental role through institutional development, research, and promoting financial inclusion. It has contributed significantly to increasing agricultural production and rural prosperity in India since its establishment.
- Meena Devi was from a poor family that struggled to meet basic needs through small-scale farming.
- She joined a JEEVIKA self-help group in 2008 and took on leadership roles, using loans to start a dairy business.
- This improved her family's economic situation and allowed investments in her children's education and health. She has become a model of success for her community through her hard work.
Microfinance provides loans, savings, and other financial services to poor individuals. It originated in the 1970s in Bangladesh and combines strengths of formal and informal credit systems. NGOs and organizations like NABARD, RMK, and SIDBI regulate microfinance institutions (MFIs) in India and provide funding. MFIs aim to improve lives of poor through financial access and self-employment opportunities. Self-help groups (SHGs) are important for microfinance, allowing members to save, take loans, and start businesses.
National Rural Livelihood Mission (NRLM) : An OverviewSayan Ghosh
National Rural Livelihood Mission (NRLM) is a poverty alleviation project implemented by the Ministry of Rural Development, Government of India. This scheme is focused on promoting self-employment and the organization of the rural poor. The basic idea behind this program is to organize the poor into SHG (Self Help Groups) groups and make them capable of self-employment. In 1999 after restructuring Integrated Rural Development Programme(IRDP), Ministry of Rural Development (MoRD) launched Swarnajayanti Grameen Swarojgar Yojana (SGSY) to focus on promoting self-employment among the rural poor. SGSY is now remodeled to form NRLM thereby plugging the shortfalls of the SGSY program. This PPT helps you to know about NRLM briefly.
ROLE OF self help group in economic development-1.pdfMrParmanand
This document provides an introduction and background on self-help groups (SHGs) in India and their role in microfinance and economic development. It defines SHGs as small village-based groups, usually composed of 4-15 local women or men, who make small regular savings contributions and provide loans to members. The introduction discusses how SHGs are started by NGOs or government organizations to empower women and reduce poverty. It also explains how many Indian SHGs partner with banks for microcredit delivery and how SHGs pool savings to make members financially stable and self-employed through small business loans.
By Shruthi Cyriac
The activities of ‘NUTRIMIX’ PRODUCTION and GOAT REARING are studied in this paper. Nutrimix is a baby food supplement and Kudumbashree women are actively involved in the production and supply of this commodity to the ‘anganwadis’ (government nurseries) in the district. The costs and benefits of this enterprise are studied in detail and the problems that these women face Research Paper on Micro Credit and Rural Market enterprise have been discussed. The second enterprise, Goat rearing, has also been critically analysed in detail to find out the costs, benefits and problems.
Self help groups are informal associations of financially weak individuals that are created to benefit group members. They are typically formed with 10-20 local people from similar backgrounds. The main purpose is to develop the socio-economic conditions of members. Government programs aim to empower women and support economic development through self help groups. Key features include small member size, common interests, equal rights, and maintaining monthly thrift savings. Self help groups provide important advantages like capacity building, mutual support, increased confidence and skills. Government schemes like DAY-NRLM provide funds and support to strengthen self help groups.
ROLE OF self help group in economic development-1.docxMrParmanand
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A study on_financial_management_in_community_based_organisations_of_jee_vi_k
1. 1 | P a g e
A STUDY ON
“FINANCIAL MANAGEMENT IN COMMUNITY BASED
ORGANISATIONS OF JEEViKA”
BY
VIMAL KUMAR TIWARI
SUMMER INTERNSHIP PROGRAM AT BIHAR RURAL
LIVELIHOOD PROMOTION SOCIETY (JEEViKA)
Under the Supervision of
MR. SANJAY MISHRA
(State Project Manager – Community Finance)
BRLPS – JEEViKA
INDIAN INSTITUTE OF TECHNOLOGY (INDIAN SCHOOL OF MINES),
DHANBAD
2. 2 | P a g e
DECLARATION BY THE STUDENT
I, Vimal Kumar Tiwari, hereby declare that the project report entitled “Financial Management in
Community Based Organizations of Jeevika” is original work. The contents of the project report
reflect the study and work done by me during my Summer Internship from 09.05.2019 to
08.07.2019 with Bihar Rural Livelihood Promotion Society (JEEViKA).
Place: Patna
Date: 08.07.2019
3. 3 | P a g e
OBJECTIVE OF THIS STUDY & INTERNSHIP
The primary objective of this study & internship is to understand the process of financial
inclusion of rural women.
The secondary objectives are:
▪ To conduct qualitative research in the form of Interviews and Meetings and gain
valuable insights regarding the gamut of financial management in Jeevika.
▪ To understand different books of records maintained at various levels of the
organizations.
▪ To calculate Velocity of Lending, Recovery Percentage and Distribution of
various Loans in different CBOs.
4. 4 | P a g e
TABLE OF CONTENTS
SL. NO. CONTENTS PAGE NO.
1
CHAPTER I : INTRODUCTION
1.1 Organizational Structure
5 - 8
2 CHAPTER II : STRUCTURE OF CBOs 9
3 CHAPTER III : RESEARCH METHODOLOGY 10
4
CHAPTER IV: FINDINGS AND ANALYSIS
4.1 Organizations Visited
4.2 Calculations
4.3 Purpose of Loans
4.4 General Observations
4.5 Shortcomings at JEEViKA
4.6 Limitations of the Study
11 – 20
5
CHAPTER V : SUGGESTIONS AND
RECOMMENDATIONS
21 – 22
6 CHAPTER VI : SUCCESS STORY 23
7 CHAPTER VII : CONCLUSION 24
8 CHAPTER VIII : ABBREVIATIONS USED 25
5. 5 | P a g e
CHAPTER I: INTRODUCTION
Bihar Rural Livelihoods Project (BRLP); more commonly known as project-“Jeevika” was
implemented to empower the rural poor, socially and economically by the Government of Bihar
(GOB). Swarnajayanti Gram Swarojgar Yojna (SGSY), after getting converted into National
Rural Livelihood Mission is subdivided into state units called State Rural Livelihood Mission
(SRLM). Bihar rural livelihoods promotion society (BRLPS) is an autonomous body which
comes under the department of rural development and also leading the World Bank aided Bihar
rural livelihood project (BRLP) or SRLM. This organization has its major focus on the
empowerment of women through the formation of community based organizations. Jeevika has
adopted a women-centric approach wherein women SHG members are acting like agents of
change who are working tirelessly not only to bring economic transformation at household level
but also ensure social transformation for the whole village society. By inviting the participation
of rural households, self-help groups are created which lead to the social as well as economical
empowerment of rural poor. The smallest unit of the community institution is nurtured and
developed in the form of Jeevika self help groups (SHGs). Jeevika SHGs get federated first at the
village level by the formation of Jeevika village organizations (VO) which are further federated
at cluster level by formation of cluster level federation (CLF). In different parts of the state, it
has been stated that more than 3.5 Lakhs SHGs have been formed. In order to assist and support
SHGs in their daily operations, a pool of dedicated cadres as community mobilizer (commonly
known as CM) have been identified, trained and instructed to support the self help groups. The
implementation of this whole project is carried out through a three 3-tier structural unit. Those
are state project management unit (SPMU), district project coordination unit (DPMU) and block
project implementation unit (BPMU). Various initiatives have been taken by Jeevika for the
betterment of rural poor households since its inception in 2006. The organization just not limits
itself with the welfare programmes but is also performing a significant role in empowerment of
poor and marginalized section of people. The organization has worked tirelessly for the well
being of the households by reducing vulnerability and dependency through innovative funds like
food security funds and health risk funds. Women empowerment has always been a goal of
utmost importance for BRLPS. Providing financial independence to the female member of
family is another way of making society prosperous.
6. 6 | P a g e
1.1 ORGANISATIONAL STRUCTURE
State Level Structure
Hierarchy of organization at state level is shown in the form of a flow chart. The organization is
headed by Mission director cum chief executive officer which has been subordinated by SPM of
various departments. Department are under two basic functional categories namely Core
thematic unit and support thematic unit.
7. 7 | P a g e
District Level Structure
The office of Jeevika at district level is being led by District project manager. BPM is
responsible for the proper management of all the projects of Jeevika implemented in the district.
In order to be functional the DPM is availed by a team of experienced and skilled workforce.
8. 8 | P a g e
Block Level Structure
The organization is further subdivided into various units at Block level. Under the supervision of
Block project manager (BPM) various staffs and managers are working for the successful
completion of project and also for the careful nurture of other development activities at block
level.
9. 9 | P a g e
• Commonly called ‘Sankul Sangh’, CLF is governed by
members who are office bearers of Village Organizations
• Referred to as ‘Gram Sangathan”, it comprises of 10-15
SHGs and is governed by office bearers of SHGs
• Popularly known as ‘Samuh’, it is the base foundation of
CBO and comprises of 12-15 women(Jeevika Didis) from
village households
CHAPTER II: STRUCTURE OF CBOs
The base of the CBO is formed by SHGs which comprises of 12-15 members from the village
households. Once an SHG is formed, weekly meetings and savings are initiated with the help of a
Community Mobilizer (CM). After opening of the bank account of an SHG, they are provided
access to credit and based on the repayment rate, their credit limit is raised over a period of time.
Further when 12-15 SHGs are formed, they are grouped together to form a Village Organization
(VO). Hence, a cluster level federation is formed which comprises of various Village
Organizations. In this way, the demand of SHGs are met horizontally through bank linkage &
inter - loaning and vertically through the channel of VOs and CLFs.
Cluster Level
Federation
Village
Organisation
s
Self - Help
Group
10. 10 | P a g e
CHAPTER III: RESEARCH METHODOLOGY
This proposed research has been carried out to understand how rural women are included in the
financial system by building self – sustainable organizations, horizontally through bank linkage
and vertically through VOs and CLFs.
COLLECTION OF DATA
All Primary Data collected for this research has been collected by conducting Qualitative
Research through In – Depth Interviews and Meetings and Examination of various Books of
Records maintained at different levels of the organizations.
TARGET POPULATION
The target population for this research were members of the SHGs, VOs and CLFs visited during
the course of my Internship.
METHODOLOGY
The methodology which was adopted to conduct the study was examination of books of record at
three different levels of Community Based Organizations (CBO). Further, at every meeting
attended, mass and personal interview of the members as well cadres were conducted regarding
what they use the loan for, sufficiency of capital, training needs etc.
SCOPE OF THE STUDY
The sample size and the area or work was allotted by the supervisor. The details of which have
been furnished below:
SL. No. District and Block Name of CLF No. of VOs No. of SHGs
1 Muzaffarpur – Bochahan Phoolmala 2 5
2 Madhubani – Rahika Mithila Shakti 1 6
3 Nalanda - Rajgir Naree Shakti 2 3
11. 11 | P a g e
CHAPTER IV: FINDINGS AND ANALYSIS
4.1 ORGANISATIONS VISITED
The following organizations were visited physically during the Internship. All details collected
have been furnished below.
1. CLF Name- Phoolmala
District- Muzaffarpur
Block- Bochahan
This CLF comprises of 57 village organizations and 697 SHGs in 4 different panchayats.
Books of record in this SHG were maintained by the Master Book Keeper- Mr. Bipin
Kumar. As found during meetings of the CLF, VOs and SHGs, active participation was
ensured by all the group members. While conducting the personal as well as mass
interviews, it was found that the cadres were highly motivated and had a sense of
responsibility to ensure timely repayment of the loans were made.
As checked on a sample basis:
▪ Cash Book was updated till April’19
▪ Cheque issue register was updated till April’19
▪ Fixed Asset Register was updated and all the required assets were marked.
▪ General Ledger was updated till April’19
▪ Receipt & Payment Account was updated till April’19
▪ Payment vouchers were updated and serially arranged
▪ Loan register was not updated on arrival but was later updated.
▪ MBK was very keen to learn more about computer, accounting and taxation
changes.
The VOs and SHGs which were taken as sample are as below:
Name of VO : Phool VO, Tara VO.
Name of SHG : Mother Teresa, Kajal, Chandni, Pooja SHGs.
12. 12 | P a g e
2. CLF Name- Mithila Shakti
District- Madhubani
Block- Rahika
As found upon visit, the master book keeper was not present and a book keeper Mr.
Ramchandra Kumar was assigned to provide all the records. Due to some of his personal
reasons and unavailability he could not provide sufficient data which was required to
calculate the velocity of lending, recovery percentage etc.
The records were not made available on demand and it was found that the meetings of
CLF are not regularly held. Based on interviews of cadres and upon checking the LDP on
a sample basis it was found that the repayment in some cases have stopped since last 8-
12months. The details of VOs and SHGs for which the records were made available are
as below:
Name of VO : Chandan VO.
Name of SHG : Parvati, Kangna, Maa Sharde, Maa Kali SHGs.
3. CLF Name - Nareeshakti CLF
District- Nalanda
Block- Rajgir
This CLF consists of 29 VOs and 376 SHGs. Books of records are maintained by MBK-
Mr. Sunil Pandit.. All the members were conducting the meeting smoothly and followed
all the required procedures. Almost all the members were consulted regarding grant of
loans to different VOs and their repayment was discussed as to why the loan is being
given to them. This ensured transparency. As checked on a sample basis:
▪ Cash book was updated till May’19
▪ Cheque issue register was updated till date
▪ General Ledger was updated till March’19
▪ Receipt and Payment was updated till March’19
▪ Training register was updated till date of the last training.
▪ In Loan Register repayment was updated but demand and new disbursements
were not recorded initially and were later recorded.
13. 13 | P a g e
4.2 CALCULATIONS
Recovery Percentage- It is the percentage of loan (principle) that has been recovered from the
borrowing organization (V.O or SHG). It is simply calculated by dividing the recovered amount
(principle) by total loan provided to the member or organization.
Recovery percentage= (Principle recovered/Total loan)*100
Velocity of Lending - It is the number of times that the loan has been able to multiply itself
because of rotation among the group members or among the village organizations. The
calculations are based on the formula which has been mentioned below:
Velocity= (ICF+General Loan)/ICF
Loan Distribution- It is the percentage of loan that has been distributed among different group
members or the participating organizations. It reflects the uniformity in distribution of loans to
different members. The formula for calculating the Loan distribution is mentioned below:
Loan distribution= (ICF or GL or Bank Loan to a member/Total loan given by the
organization)*100
Table showing Recovery Percentage of ICF, Velocity of Lending, and General Loan Distribution
Percentage of Cluster Level Federations.
Name of CLF
Recovery
Percentage
Velocity of
Lending
General loan
distribution(Min
&Max)
Phoolmala 66 2.2
Min-0
Max-7.1
Nareeshakti 84 2.3
Min-0
Max-11.3
14. 14 | P a g e
The recovery percentage is the amount of ICF that has been recovered out of the total ICF
provided. As both these CLF belong to the ones in the first phase of launch of the project, the
recovery percentage is good. The new addition of VOs in the CLF has affected the recovery
percentage as new addition has lead to increase in the denominator but the numerator does not
increase significantly. It increases over a period of time as the amount is recovered. The velocity
of lending is good as it is greater than 2. It shows that a corpus has been build which is more than
double the ICF. The general loan distribution here shows the minimum and maximum general
loan that has been provided to the member VOs. If the range is high, it implies that the
distribution has been uneven. There are also chances that elite capturing might creep in such
distributions. High range must be avoided as a major part of general loan lies with one or two
VOs.
Table showing recovery percentage of ICF, Velocity of Lending, and General loan distribution
percentage of Village Level Organizations.
Name of VO
Recovery
Percentage
Velocity of
lending
General
loan
amount
General loan
distribution(Min.
& Max)
Phool VO 91.42 2.63 9,80,000
Min-0
Max-33.7
Tara VO 100 5.80 31,23,200
Min- 0.9
Max- 14.2
Chandan VO 66.02 1.01 11,600
Min- 0
Max-51.7
Rahim VO 94.34 7.4 33,94,200
Min-0
Max-23.1
These calculations show the recovery percentage, velocity of lending and the general loan
distribution of different VOs on a sample basis.
15. 15 | P a g e
As is evident from the above table, in Phool VO, the recovery percentage is good as it is above
90% and the velocity of lending is 2.63 which implies that the VO has been able to multiply the
ICF by more than two times which is significantly good amount. The range of general loan
distribution is 33.7% which implies that out of the total amount of 9,80,000, 33.7% lies only with
one SHG.
In Tara VO, the recovery percentage is excellent and in full amount and the velocity of lending is
5.80 which implies that the VO has been able to multiply the ICF by almost six times which is a
very good number. The range of general loan distribution is 14.2% which implies that out of the
total amount of 31,23,200, only 14.2% lies with one SHG and is evenly distributed.
As Chandan VO is a new VO, the recovery percentage shows a low figure and the velocity of
lending is limited but performs well as it exceeds 1. The general loan distribution has been made
but is borderline average.
Rahim VO has been the best performing VO among all VOs visited as the velocity of lending
exceeds 7. Upon examination of books of records, it has been found that the VO has been able to
circulate money very efficiently and makes timely repayment. Such VOs should be demonstrated
as an example for the others.
16. 16 | P a g e
Table showing recovery percentage of ICF, Velocity of Lending, General loan distribution
percentage and Bank loan distribution percentage of Self Help Groups.
Name
of SHG
Recovery
percentage
Velocity
of
lending
ICF
distribution*
General
loan
amount
General loan
distribution*
Bank
loan
amount
Bank loan
distribution*
Pooja
SHG
100 7.6
Min-0
Max-20
3,30,000
Min-0
Max-59.1
1,00,000
Min-0
Max-45
Chandni
SHG
100 3.9
Min-0
Max-30
1,45,000
Min-0
Max-38
90,000
Min-0
Max-50
Maa
Sharde
SHG
100 3.2
Min-0
Max-20
1,10,000
Min-0
Max-28
2,92,000
Min-0
Max-20
Mother
Teresa
SHG
100 17.10
Min-0
Max-35
8,20,200
Min-0
Max-32
3,11,000
Min-0
Max-32
Kajal
SHG
78 11.47
Min-0
Max-50
5,23,650
Min-0
Max-21
50,000
Min-0
Max-40
Maa
Kali
SHG
87 4.1
Min-0
Max-20
1,55,000
Min-0
Max-26
1,45,000
Min-0
Max-20
Parvati
SHG
100 3.2
Min-0
Max-24
1,35,000
Min-0
Max-19
1,55,000
Min-0
Max-39
Kangna
SHG
48 1
Min-0
Max-31
0 0 0
Min-0
Max-23
These calculations show the recovery percentage, velocity of lending and the general loan
distribution of different SHGs on a sample basis.
Recovery Percentage : It can be seen that all SHGs have a good percentage ranging from 80-
100%. However, Kangna SHG has not been able to perform fairly in this segment.
Velocity of Lending : Pooja SHG, Mother Teresa SHG and Kajal SHG have shown excellent
performance in this segment with multipliers as high as 17.10. However, Kangna SHG seems to
be lagging behind in this segment as well.
17. 17 | P a g e
General Loan Distribution : As seen in Pooja SHG, 59.1% of the total loan amount is
concentrated in the hands of one member which increases the chances of the loan turning bad.
This should be checked and avoided. The other SHGs have been able to maintain a low
percentage in this segment which is commendable.
4.3 PURPOSE OF LOANS
Based on interview of 108 SHG members and checking of LDP on a sample basis
This graph has been generated by assembling data collected from various LDP of different
SHGs. Upon interviewing 108 members of SHGs during the course of two months, the following
observations have been made:
▪ The highest percentage, as seen in the graph above, lies with Livelihood purposes. This
means that the loans taken by members of SHGs have been used for Income Generation
purposes. They have mainly borrowed to maintain their livelihood and earn a living.
58
9
10
15
8
Purpose of Loan
Livelihood
Health
Household
expenses
Education
Construction
18. 18 | P a g e
▪ The next cause for loans taken is for Educational purposes. Members of the SHGs have
been utilizing funds to avail higher education and vocational training.
▪ A substantial percentage is seen to be used for Household expenses. This directly goes in
for consumption purposes.
▪ 9% of the total loaned amount is being used for Health and Medical purposes of the
members of the SHGs.
▪ Construction of houses and toilets also requires funds and these expenses have been met
by loans taken from SHGs.
4.4 GENERAL OBSERVATIONS
The following general observations have been made during the course of my Internship with
JEEViKA :
▪ Bank Loans paid ahead of other loans : Bank loans were paid off on a priority basis as
compared to loans taken from CBOs. This may be due to the fear of facing punitive
actions from banks and other financial institutions.
▪ Behavioral Aspect: It was observed that the members of SHGs had a sense of
responsibility towards one another and there existed a family – like culture among all.
This made the members repay their loans on a timely basis with the intention that the
money repaid would be of help to another member as well as build their own corpus. This
group development and peer – to –peer support is the basis of the formation of SHGs.
▪ Absence of Societal Barriers : It was seen that inspite of these SHGs having a mix of
people from different backgrounds, castes, religions, etc., there were no societal barriers
among members. Every member of the group lent a helping hand to the other and
contributed to the joint progress of every member of the group. This adds to the group
capacity and sustainable development of every member of the society is ensured.
▪ Transparency : A very high level of transparency has been maintained by CBOs all
throughout in terms of handling and mobilizing funds. Every member of the SHG has the
right to access information and there exists no opacity in any form.
19. 19 | P a g e
▪ Availability of Easy Credit : Credit has been made readily available for people of all
strata and this has been a vital element of SHGs. If monitored well, it can be ensured that
the funds taken are being used to livelihood maintenance purposes and not consumption
purposes.
▪ Negligible NPAs : This came as a complete surprise that in a country where loan
defaulters are the richest of the lot, people having the bare minimum facilities and income
pay off their loans regularly and timely. It was observed that members of the SHGs rarely
had willful defaulters and all loans were almost repaid everytime.
▪ Low Literacy does not imply Low Financial Literacy : It was observed that low
literacy levels among the members of SHGs did not impact the quality of financial
records maintained by them. Inspite of being provided with brief training about the
process of financial record maintenance, it was observed that the records were accurately
and properly maintained.
4.5 SHORTCOMINGS AT JEEViKA
The following are the shortcomings I have identified during the course of my Internship :
▪ Poor Loan Monitoring : Due to the absence of a mechanism to trace the use of funds
taken as loans, it cannot be ensured if an individual is utilizing the funds for stated
purposes or not. Rigidity in Monthly Savings : The amount of monthly savings an
individual can deposit is fixed to Rs. 10. This brings in rigidity in the system as an
individual wanting to deposit a higher amount when he has surplus funds cannot do the
same. This limits their corpus and takes longer time periods in accumulating funds.
▪ Identification of Errors : There is a lack of timely identification of errors in book
keeping. This is done only at the time of audit which makes way for prolonged internal
errors.
▪ Lack of Awareness regarding Whistle Blower policies : There is a lack of awareness
among Cadres regarding the whistle blower policies and grievance redressal mechanism
at Jeevika. They are unaware of the forum to be approached for complaint registration
and grievance redressal.
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▪ Outdated Passbooks : Due to passbooks not being updated on a timely basis, balances
cannot be checked as and when required.
▪ Overwriting in books of records : It was observed at many instances that overwriting
has been done in books of records at different levels.
▪ Irregular Payment to Cadres : There are Cadres in the system who receive delayed
payments from the CBOs which causes lowered levels of motivation.
4.6 LIMITATIONS OF THE STUDY
Due to certain aspects, there are limitations in the study carried out.
▪ This research study is time – bound as I was given a time frame of two months to
understand, explore and carry out the study.
▪ The sample size is limited to the districts visited and all observations and analyses have
been made with regard to said districts.
▪ Due to different timings of meetings and my visits, the number of meetings attended are
limited.
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CHAPTER V : SUGGESTIONS &
RECOMMENDATIONS
Following are the suggestions provided to overcome the shortcomings at Jeevika.
▪ Good performers must be incentivized to ensure high degree of motivation.
▪ A proper mechanism should be put in place which helps analyse the reasons for loans
turning bad. This will help understand the behavior of loan defaulters and curb such
actions further on.
▪ Flexible monthly savings amounts must be ensured upon agreement of all members of a
SHG.
▪ Cadre Exchange Programs should be held to demonstrate ideal practices of book
keeping.
▪ Monitoring the utilization of loans should be done to ensure that the purpose of availing
the loan has been fulfilled and the individual is utilizing the fund for the stated purpose
only.
▪ Quarterly or Semi – Annually Review- There must be a quarterly or semi annual
review of the books of records to ensure that the errors could be rectified well in time. A
provision for internal audit could serve this purpose.
▪ Annual General Meeting - An annual general meeting may be held where the books of
records for the year could be discussed.
▪ Payment of Cadres - Payment of cadres should be done on a timely basis, irrespective of
the time of their honorarium being paid by the organizations.
▪ Reconciliation of Books - The loan register must be reconciled with the organization’s
during the monthly meeting held.
▪ Physical verification of Assets - New assets must be entered in the books at the earliest
possible time and a physical verification must be done on a yearly basis to keep a track of
them.
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▪ Awareness to Prevent Fraud- It was observed that many private chit fund companies
approach the cadres and the members and promise returns which cannot be provided.
Time and again it has been seen how these companies fail, making the poor people
vulnerable and they end up depositing all the savings on a promise of higher returns.
Awareness campaigns must be held to ensure that the members don’t fall prey to such
unethical companies as it weakens the objective of vulnerability reduction.
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CHAPTER VI : SUCCESS STORY
Savina Khatun, a resident of Seema village, was married in 1997. She had never been to a
bank or outside of her house after marriage, for work related purposes. On 29.09.2009, she
joined an SHG on the motivation of a BPM. She explains how her life changed enormously
after joining hands with other women in JEEViKA. Prior to joining, her household income was
hardly 3000 per month. Initially, being from an orthodox family, her husband stopped her from
holding any post in SHG, but she overcame all societal barriers and went on to become the
President of her village organization and is now the President of CLF Naree Shakti. She further
explained how her religious beliefs were a big challenge in onboarding more and more people of
the same religion. She used Cost and Profit to explain that interest is nothing but a profit one
earns or expense one pays to use money. A woman who never went out of her house before
joining SHG, now is a CRP and briefs people on various issues, from esteemed office holders
like the District Magistrate etc. She happily expressed her desire to visit more and more places as
a CRP as it also helps as a source of income. Initially, she took a loan of Rs.1,00,000 for the
purpose of scaling up her husband’s business who worked as a tailor. After joining JEEViKA,
her income is now almost 20,000 per month, with an additional income from being a CRP and
imparting training. Dropped out of school in 1996, her urge to develop herself, made her study
with her own daughter and her efforts were rewarded when she passed Matriculation in 2017.
She has also revolted against delay in banking procedures by bank staff, blocked roads as the
local bus drivers refused to let the local women board buses. She feels that many members still
use a large part of loan for consumption purpose which needs to be diverted towards livelihood.
She thanks JEEViKA for the long way she has come and the journey ahead. She feels JEEViKA
has ensured women raise their voices against any injustice or wrong doings, be it Liquor Ban or
any other social responsibility.
Savina Khatun is just an example. There are thousands of women who credit JEEViKA for
the smile it has brought on their faces and happiness in their families.
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CHAPTER VII : CONCLUSION
Financial inclusion is essentially the process of ensuring financial services to every section of the
society. Massive efforts are being made by the government and financial institutions to provide
easy and timely credit to all regions, big or small, of the country. Various programmes such as
Jan Dhan Yojna, Mudra Loans and the like, to empower the rural poor and promote sustainable
livelihood. JEEViKA has been the torchbearer of such activities in Bihar since 2006. It has time
and again been recognised for its exemplary work that has alleviated poverty in many regions. At
JEEViKA, I received the opportunity of understanding how rural finance is majorly dependant
on the behavioral aspect of finance. This Internship has been nurturing and enriching in every
form and will constitute for a major part in my learning process. I was able to acquaint myself
with the grassroot reality of the extreme conditions in which cadres and other members of the
society work. With big and small scams surfacing in news channels frequently, it is fascinating
to know that people with just the basic necessities and marginal income repay their loans timely.
I consider this opportunity a privilege and every experience of these two months will remain as a
major learning experience through my journey.
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CHAPTER VIII : ABBREVIATIONS USED
The Report contains certain abbreviations which have been cited below.
▪ SHG – Self Help Group
▪ VO – Village Organisation
▪ CLF – Cluster Level Federation
▪ ICF – Initial Capitalization Fund
▪ CM – Community Mobiliser
▪ CBO – Community Based Organization
▪ AC – Area Coordinator
▪ BPM – Block Project Manager
▪ DPM – District Project Manager
▪ SPM – State Project Manager