| AB Self Help Groups |
 |
| |
 Self Help Groups |
 |
|
Despite vast expansion of the formal credit system encompassing spheres of social and mass banking, the dependence of the rural poor on moneylenders still continues in many areas, especially for meeting their emergent needs. Under these circumstances, a non-formal agency for credit supply to the poor, in the form of Self Help Groups, emerged as a promising partner to the formal credit system. SHGs are a part of micro credit.
|
|
| |
| The objectives of Self Help Groups are to: |
|
- inculcate saving and banking habits among the poor;
- secure them with financial, technical and moral strengths;
- enable availing of loan for productive purposes and repaying the same over a period of time, and in the process gain economic prosperity;
|
|
| |
| SHG - Bank Linkage programme-emergence: |
|
|
|
| |
| Criteria for selecting SHGs : |
|
- The group should have been in active existence for at least a period of six months.
- The group should have successfully undertaken savings and credit operations from its own resources.
-
Democratic working of the group wherein all members feel that 'they have a say' should be evident.
- The group is maintaining proper accounts / records.
- The SHG members should preferably have homogeneous background and interest.
|
|
| |
| Estimation of credit requirements: |
|
Ist Dose:1:4 times of the corpus or Rs. 50,000/- whichever is higher.
2nd Dose:1: 10 times of the corpus or Rs. 1,00,000 in case of rural , Rs.1,50,000 in case of urban areas whichever is higher.
3rd and Subsequent Doses : Financing as per Micro Credit Plan
|
|
| |
| Repayment period: |
|
Loans are repayable in monthly installments ranging from 36 to 60 months |
|
| |
| Next |