|
RGMVP believes that the poor have the
innate ability to come out of poverty; they
must be provided an opportunity and an
enabling environment. They require sensitive
support – not subsidy but multiple doses of
credit as and when needed. Facilitating
access to microfinance through SHG-bank
linkages is then the most critical aspect of
Financial Inclusion.
The first step in the financial Inclusion
process is the mobilization and organization
of women into SHGs, consisting of up to 20
women each. Tools such as
experience-sharing, skits,
confidence-building, message dissemination
through the medium of folk songs, processes
such as Sangam
|
|
|
Bata (or Samooh Rasta), and visual aids play a crucial role in the social mobilisation process. The role of the CRP is critical, as she is powerful motivator and mobiliser of women through experience-sharing. In the process, internal animators -- active women in the community who have grasped the concept of SHGs -- are identified, and undergo intensive training on the best practices of SHGs. These community leaders take up the responsibility of guidance and hand-holding support to the SHGs through training and capacity building.
The SHG-bank linkage process has been simplified and follows a well-defined path within a certain timeframe:
Step 1: After six months, when the SHG has
matured, has demonstrated that it has
internalised the best practices of SHGs, and its
internal dynamics are streamlined, it receives a
revolving fund of Rs 25,000 from the bank as
Cash Credit Limit (CCL) or 10 times the SHG’s
corpus, whichever is higher. This loan amount of
Rs 25,000 is accessed by the members of the SHG
as and when required, and repaid. This facility
remains with the SHG in perpetuity.
Step 2: After another six months, when the SHG
has demonstrated that it does use the loan and
repay it, that its members are investing in
small income-generating activities, it is
entitled to a larger linkage, based to a process
called Micro Credit Planning (MCP). The
seven-step MCP process is a
participatory method through which the SHG
members prepare a plan based on their likely expenditures, savings, sources of livelihood,
ways to enhance income, where investments are
required, loans and repayment. The main objective of the MCP is to
Step 3: After the successful
completion of the MCP and its evaluation, the
SHG is eligible for the second phase linkage: a
larger loan – up to Rs 5,00,000 – without any
collateral security. This phase is based on
Total Financial Inclusion (TFI) where the poor
will look only at the formal financial
institutions – as opposed to informal
arrangement such as a money lender -- for all
their needs, economic and social. The programme,
thus, enables each SGH that has internalised the
best practices to build up its members’ capacity
get access to funds for their every requirement,
be it for income generation, education, health,
emergencies, etc.
The focus of bank linkages is on adequate and
hassle-free credit, which is provided to the SHG
members at their doorsteps. RGMVP has been able
to garner support from all the banks in its
project area such as Bank of Baroda, State Bank
of India, Punjab National Bank, Allahabad Bank,
Baroda UP Gramin Bank (RRB) and Aryavart Gramin
Bank. Every linked bank has mobile micro-credit
units which go the villages, rate and appraise
the SHGs for the credit linkage, participate in
MCP process, and give suggestions. The banks
have ownership of the microfinance programme and
are committed to facilitating RGMVP’s Financial
Inclusion initiative, by providing loans to SHGs
at a confessional interest rate of 9 percent.
The VOs and BOs too function as the Banks’
Business Facilitators to facilitate
community-owned SHG- Bank linkages.
|
