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Jnana Prabodhini Suvarna Gokhale

Jnana Prabodhini Suvarna Gokhale. SHGs And financial literacy Experience of Jnana Prabodhini. SHGs of Jnana Prabodhini. Numbers and Work Area First SHG in 1995 in Shivapur, Haveli District: - Pune Blocks :- Haveli, Bhor, Velhe Villages :- Around 40 Clusters :- 15

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Jnana Prabodhini Suvarna Gokhale

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  1. Jnana PrabodhiniSuvarna Gokhale SHGs And financial literacy Experience of Jnana Prabodhini

  2. SHGs of Jnana Prabodhini Numbers and Work Area First SHG in 1995 in Shivapur, Haveli District: - Pune Blocks :- Haveli, Bhor, Velhe Villages :- Around 40 Clusters :- 15 SHGs :- 300 Membership:- 5,100 Monthly Savings :- Rs. 6 lacks Monthly Loans :- Around Rs. 16 lacks Yearly Turnover :- Around 2crors

  3. Typical SHG Member A Profile • Married woman of 35+ years of age • Schooling up to 4th standard • No exposure outside house duties • First time visitor of a bank • Scared of paperwork • Can read with difficulty • Functionally illiterate • Accounting literacy is Zero So doesn’t even know how to tally vertical and horizontal rows in Income Expenditure sheet • No exposure of handling money

  4. Impact: Economical • Availability of credit at low interest rates (In comparison to informal credit) • Transparency in transactions, so no cheating • Easy loans without paperwork • They also earn money from the group as they are owners • Skill Development (Counting of notes, Use of calculator) •  Development of financial analytical skills (They start evaluating loan applications based on need, cause and repayment capacity) ….

  5. Impact:Economical • Some start micro-businesses and risk their own capital for the business •  Introduction to formal financial institutes •  Their involvement with Money matters increases …. “It’s also my job, not only dhanyacha”

  6. Where does JP differfrom other NGOs? Krushikanya, Udyogini, Arogya Prabodhika • Setting social norms Til gul- Instead of Haladi kumkum • Pressure of SGSY • Role model of APL groups for quality improvement • Make SHGs From SHGs to SIGs (Special Interest Groups) • self reliant and then withdraw Sanghanidhi and Membership fee

  7. Problems faced by SHG Members in the banks * Transition from Non-formal sector to formal sector Wife of Moneylender is the Moneylender but wife of Branch Manager is not the bank * Bank has no personalised approach. They need everything in writing * Only male officers most of the time * Do not even basic banking information (e.g., Savings a/c and Loan a/c are different) * Need lot of paperwork for everything * Overhead costs in dealing with banks is high (travel, time etc.)

  8. Lessons learned…. BANKERS: • Social network and faith as security • Increased recovery rate • Best platform to increase no. of beneficiaries • Preliminary scrutiny of repayment is taken care of • Scrutiny of viability of loan is also taken care of

  9. Lessons learned…. GOVT.: • New platform for poverty eradication Increased Outreach MEMBERs: • Inculcation of saving habit • Alternative to savings in Post Office • Easy access to Loan based on Savings

  10. Some Suggestions About Linkage • 50 % of the members within an SHG should have availed of loan internally • Ratio for loan lending must be related to rotation, not with savings • Group Life Insurance as a prerequisite as no SHG loan is secured • Bank Loan lending must be in front of members who don’t want loan.

  11. Vittiya Saksharata Abhiyanwith CAB Initial impressions about banks • I will be named as guaranteer without my knowledge (Now they know it is not so) • There is only saving account and FD (Came to know about Savings products of bank) • Not comfortable with banks • Bank transactions are open for all, There is no privacy in keeping money there (Banks’ transactions are private. Other people don’t know about your transactions) • Bank Manager is the final authority and inflexible

  12. Vittiya Saksharata Abhiyan Post Survey impressions • Now they think that the bank has come to their village • Awareness of education loan • Those who were just above the subsistence level benefited the most • Importance of signature understood by all • Initially they associated ‘bank’ with loan only. Now they associate bank with ‘Savings Account’ too.

  13. Vittiya Saksharata Abhiyan Lessons learned and Suggestions • You can have a program without any politics and politicians • Ladies staff required in every ‘Rural’ bank • A bank counter in village, -even once a week for an hour- will be very useful • Group Home Loan scheme needed

  14. Thank You

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