Taking Banks to Villagers’ Door Steps
by Intermediaries are needed between the rural borrower and the financial institutions willing to extend micro-finance. NGOs help rural women to form self help groups and bring financial institutions to villagers’ door steps.
Self Help Groups as Vehicles of Social Change
SHGs in rural areas of India have brought several thousands of uneducated women out of the confines of their homes and enabled them to gain not only considerable economic independence, but enough self confidence to project their identity and voice their opinions. It has helped them, in many instances, to tackle pressing problems such as making available drinking water or improve poorly functioning Public Distribution Systems (monthly food rations) or government schools and getting the old age pensions on time. Many men in the villages neglect family because of their addiction to alcohol and the self help groups have staged protests and got the liquor shops closed.
Watch SHG’s usher a new ray of hope to women in Uttarakhand
Self Help Groups and microcredit financing in Nonglang VIllage, Meghalaya, India
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Post CommentLouie Jerome
On August 30, 2009 at 4:08 am
A very indepth, informative article. This is a subject that I had not really given much thought to. Interesting.
giftarist
On August 30, 2009 at 6:34 am
Interesting topic
ken bultman
On August 30, 2009 at 6:39 am
Splendid idea akin to the electrification of rural America except for the exclusion of men.
Karen Gross
On August 30, 2009 at 1:38 pm
I also think this is a splendid idea – much more than temporary aid (which is obviously still needed in many areas), this self help is enabling women to care for their families. True but tragic that the men so often do not display the same self-sacrificing parenting.
Eunice Tan
On August 30, 2009 at 11:30 pm
Very detail and informative. Hope there will be many improvements in the future for villagers.
Jake
On August 31, 2009 at 9:55 am
Generally, the repayment rate on micro loans are 98%! There is a microfinance website out now, http://www.unitedprosperity.org, that allows the general public to browse profiles of different women entrepreneurs, and contribute to a loan guarantee for whomever they choose. The loan guarantee is issued to the bank as collateral, and once that is in place, the bank gives a loan about twice as large to an MFI, which then disperses it to the entrepreneurs. This model allows maximum impact from the user, and creates linkages between local banks and microfinance institutions. It’s also really great to choose who you’d like to help support.
CHAN LEE PENG
On August 31, 2009 at 11:49 am
Informative and interesting read. Thanks for bringing this for us. Have my liked it.
Ruby Hawk
On August 31, 2009 at 10:04 pm
I have read about these womens groups and it is an excellent plan. I like that Jake gave this link for people who are interesting in helping.
monica55
On September 5, 2009 at 1:39 am
Excellent article. Two thumbs up for SHG for empowering the suppressed women, so that they could have their voices heard and make a difference in the social welfare of their country.
Monica.