The SHG model is a homegrown model that emerged in the 1980s and 90s. There is an overwhelming support for the SHG movement from the Government of1 India, India & Central Bank, NABARD, the banking sector, state governments, and NGOs. The important growth of the SHGs, in numbers, is mainly attributable to the proactive role of the state governments.
Over the past 5 years, the Indian Government Budget presentation has emphasized on SHG bank linkage each year. SHGs have also proven to be a profitable business for rural and semi-urban bank branches - banks consider lending to SHGs as a business opportunity with over 95% of recovery and aggregated transactions (one SHG means 10 to 20 individual members). Unlike the majority of agriculture and rural clients, SHGs operate their saving accounts on a regular basis, and they maintain some credit balances in their accounts. Many banks and branches have begun substantial lending to SHGs. According to a recent study2 SHG members constitute well over one-third of the total customers, and they account for about one-quarter of the total business in rural branches. In some branches, SHG lending has reached three-quarters of total lending. SHGs represent a unique approach to financial intermediation. The approach combines access to low-cost financial services with a process of self-management and development for the women who are SHG members.
Why Counselling Course: In the present changing lifestyle people are becoming prey to stress, depression, anxiety etc that lead to behavioural problems. The number of people with this problem is increasing at a geometric progression rate. In view of this, the importance of Counselling course is underline.SHGs are formed and supported usually by NGOs or (increasingly) by Government agencies. Linked not only to banks but also to wider development programmes, SHGs are seen to confer many benefits, both economic and social. SHGs enable women to grow their savings and to access the credit which banks are increasingly willing to lend. SHGs can also be community platforms from which women become active in village affairs, stand for local election or take action to address social or community issues (the abuse of women, alcohol, the dowry system, schools, and water supply). Moreover, SHGs are expected to extend financial services to the poor, and contribute to the (1 Reference from http://www.microfinancegateway.com 2 by APMAS, in the Nizamabad district) alleviation of rural poverty.
SHG members reflect a diverse membership covering different social and economic categories, including the poor. Yet, questions related to the functioning of SHGs continue to rise. Some of these are listed below:
- How effective are the groups in managing their financial transactions?
- Are the groups sustainable?
- Do they help in mobilising women to take social action?
- How effective are such actions?
- Who really benefits from such action?
- To what extend do the poorest of people benefit from the SHGs and the social
- action programs initiated by them?
- Do the most vulnerable people join SHGs at all and if they do so, are they at
- greater risk of leaving the SHGs?
Although these questions have no easy answers, it is important for all those working with SHGs to keep these in mind during their interactions with the SHGs.
This course aims to enhance women’s confidence, improve their interpersonal relations/ leadership qualities / general management abilities and also help them to acquire access to credit and resources. Participants who complete the certificate program offered by CARE will be equipped as resource persons to train other change agents situated in their regions / work sphere as well as establish their own micro-enterprises. The process will help to promote formation and sustainability of SHGs as well
1. Build the capacity of students (members of women groups and field staff from NGOs already in existence) by providing them information on the concept of SHG.
2. Develop an understanding amongst the students as to the administrative procedures involved in creating SHGs.
3. Enhance student interaction with outsiders, particularly officials, including government offices. Promote leadership qualities among the students
4. Helping SHG members manage cash flow deficits (maintaining food intake and overcoming emergencies), leading to improvement in quality and productivity of their only capital/resource—human capital/ resource;
5. Helping SHG members avoid money lenders, especially to meet food and health emergencies;
6. Helping members invest in asset creation, diversify their occupations, and improve their risk-bearing capacities;