This document discusses NABARD's experience in enabling access to financial services for women in India. It notes that women make up 48% of the population but have lower literacy rates, earn less than men, and generally lack access to property and land rights. Historically, women have relied on clandestine savings practices and money lenders to borrow small amounts. NABARD introduced self-help groups to provide women with savings opportunities and credit at market rates in order to improve their economic empowerment and livelihoods. Self-help groups have helped women generate income, build assets, and gave them a social support network. However, more work is still needed to expand financial inclusion to underserved regions and address the declining number of

1. Enabling access to financial
services for women: NABARD
Experience
Dr. B.S.Suran
NABARD

2. The unheard & less talked segment –
some facts
 48 % of the population (933/1000 – ratio)
 Literacy rate 65 % only ( 82 % for men)
 Life expectancy : 64 years
 Don't own property or have land rights
 Paid 60 % of the what men get ?
 Forms 80 % of the labour force in agri
..But: we moved from class to mass banking ?

3. Women Savings :Should we not quench
the thirst ??
Clandestine Saving Practices
Women in HH budget
68%
56%
19%
2%
Self-help-Group
(microfinance)
Ros cas
Jewels
Cas h
Ref: Group Lending in South-India A Gender Perspective : by Isabelle Guérin - Institut de
Rercherche pour le Développement, French Institute of Pondicherry

4. Where do women borrow ?
Borrowing Practices (% of women involved)
22%
13%
30%
65%
65%
60%
82%
93%
Relatives, friends and neigbors
Pawnbrokers
SHGs
Shopkeepers
Door-to-door Moneylenders
Employers
"Wealthy People"
Banks and financial compagnies
Ref: Group Lending in South-India A Gender Perspective : by Isabelle Guérin - Institut de
Rercherche pour le Développement, French Institute of Pondicherry

5. “Women’ s responsibilities”
in household financial budget management
0% 20% 40% 60% 80% 100%
Income
Saving
Borrowing
Repayment
Minor Role (0-33%)
Moderate Role (34-66%)
Decisive role (>66%)
Ref: Group Lending in South-India A Gender Perspective : by Isabelle Guérin - Institut de
Rercherche pour le Développement, French Institute of Pondicherry

6. But :
 Slogan: Help an women and help a family ?
 They are better savers ?
 They have better repayment track record
 They are more trustworthy
 But : Market segment ignored
 lending is based on security / not trust
 Lip service ?
 just ensure regulatory compliance ?

7. Some interventions which NABARD
tried
 Through Banks – Women Development cell
 Direct :
 Promotion of SHGs
 Tribal Development fund and programme
 Skill development programmes
 MEDP
 REDP
 Farmers clubs
 Marketing assistance

8. Microfinance
 “Provision of thrift, credit and other financial services
and products of very small amounts to the poor in rural,
semi-urban and/or urban areas for enabling them to
raise their income levels and improve living standards”
- NABARD’s Task Force on Microfinance, 1999

9. Design features - SHG
 Enables exclusion of rich
 Self-selection
 Focus on women
 Saving first and credit later
 Intra group appraisal
systems and prioritization:
 Credit rationing
 Shorter repayment terms
 Market rates of interest
 Progressive lending
 Multi-eyed operation

10. SHGs What was the impact ?
Self-Help
Initiatives
Peace
(Interfaith,
inter-caste tolerance
and conflict resolution)
Education
(School for children,
adult literacy.
Peer education )
Income Generation
(Encouragement and advice)
Leveraging Govt contracts-hatts/
quarrying/fish pond/
milestone/ health related
Social Evil Eradication
(Alcohol abuse,
spousal abuse,
excessive dowry,
Undesirable social practices
gender space,)
Civil Society
(Women members
run for elected office)
microFinance
(Savings and credit)
Banker friendly
market/recovery/image
Infrastructure building
(physical, social & community assets
Emergency Prevention
(recurring natural calamities)
Watershed Management
(Water users groups,
infrastructure maintenance,
share practices)

11. Some issues linger !!.....solutions
 Persistent declines in bank offices.
 Reductions in bank staff, particularly those posted in rural /semi-urban br
 Erosion in the number of loan accounts for agriculture and SS industries
 Nearly 80% of small borrowal accounts have been in rural and s-urban areas.
 SHG: borrowal accounts have a regional dimension…less in underdeveloped
regions of north-east, east and central
 Focus is on micro loans only by banks

12. What the bank can do ?
 Take the commitment of top management
 Have a long term vision /Draw a mission statement
 Put a strategic plan to translate the mission into action
 Build and sensitize staff
 Review in all meetings with seriousness
 Incentivise the staff and BM who do good work – Award functions /
certificate of merit / recognition
 Don't forget the basic tenants of lending – 1) information gathering , 2)
monitoring , 3) incentive 4) enforcement – Missed the first step and you
missed the rest ??
 Remember collateral free lending is not security free lending
 Increase the target for direct loans / SHGs , rating
 using intermediaries / franchisees ?
 Federations are livelihood support organisation and BF and BC
 NGO as BF and BC Partnership programmes

13. Thank you for your patience
Contact us : suranbs@gmail.com
mcid@nabard.org
Visit us at www.nabard.org