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Credit
& Savings Programme
The
Credit and Savings Programme was initiated in 1995 to
provide credit and other financial service to the people
who cannot access the formal sector. The main focus
of CSP was to enhance the livelihood of poor women and
empower them in the process. This is done by providing
credit to poor women & men through Self Help Groups
(SHGs) and Joint Liability Groups (JLGs).
The Credit and Savings Programme was initiated in 1995
to provide credit and other financial service to the
people who
cannot access the formal
sector.
The main focus of CSP was to enhance the livelihood
of poor women and empower them in the process. This
is done by providing credit to poor women & men
through Self Help Groups (SHGs) and Joint Liability
Groups (JLGs).
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CSP is headed by a director,
who is responsible for all operational matters of the
Program and reports to the Executive Director, RGVN.
There is a Central Coordination Unit (CCU) which assists
the Director- CSP. The Credit and Savings Program operates
through its large network of unit and area officers
(addresses are given overleaf).
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To enhance
the livelihood of the underprivileged of the society
who have little or no access to
formal banking systems. |
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To inculcate
the habit of thrift amongst the poor. |
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Empowerment
of women through income generation activities. |
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Channelizing
credit to the poor. |
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Eliminating
the exploitation of money lenders. |
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Creating
opportunities for self employment. |
SelfHelp Group (SHG)
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10-20
members (all women), who have no knowledge of handling
funds previously. |
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Savings
compulsory even prior to loaning. |
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Group
has a leader and a treasurer. |
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SHGs
are formed with an idea that it would exist and
sustain on its own even without outside
credit. |
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Loan
size Rs 4,000/- to Rs 12,000/- per member |
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Interest
10% per annum (flat) and an administrative cost
upto 5%. |
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Repayment
weekly/monthly |
Joint Liability Group (JLG)
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5-6 members,
both men and women who have experience of handling
funds previously. They should have similar income
cash flow to form a group. |
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It is
a credit group. |
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Savings
compulsory only after loaning. |
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Group
has no leader or a treasurer. |
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Members
are individually and jointly liable to each other. |
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Loan
size Rs 3,000/- to Rs 25,000/- |
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Interest
7% to 10% per annum (flat) depending on the periodicity
and administrative cost up to
5%. |
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Repayment
weekly/monthly |
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SHG loanee
member, with good repaymen record for last three
loans. JLG loanee, with good repayment
record for last two loans. |
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It is
for SHG members who have reached a certain level
to absorb more credit. |
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Should
show entrepreneurial ability. |
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Loan
size Rs 15,000/- to Rs 25,000/- |
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Interest
10% per annum (flat) and an administrative cost
upto 5%. |
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Repayment
weekly/monthly |
Area Survey
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Survey
of bank availability |
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Interaction
with the Gaon Panchayat |
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Study
bank's Non Performing Assets (NPA) in that area |
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Target
client survey |
Ensuring Potentiality
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Analysis
of credit needs |
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Competitors
(other NGOs, Banks etc) analysis |
Public Meeting, to speak about-
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the Credit
and Savings program; |
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its modalities |
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the rate
of interest charged etc. |
Group Formation
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Field
Supervisor Promotes groups |
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In case
of SHGs, weekly group meetings are held for three
months when the group begins the process
of saving a minimum of Rs 10/- per member
per week. After this for another three months, SHG
are encouraged to revolve the savings
within members at a rate of interest
decided by them. During this period observations
are made on self and credit disciplane;
and on system development. |
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Loaning
to SHGs begin only after this phase of six months. |
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In case
of JLGs, loaning begins as soon as the group is
formed. |
Training of groups,on
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Group
cohesiveness |
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Bookkeeping |
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Credit
discipline |
Group Recognition Test (GRT)-
to test the effectiveness and strength of the group.
There are specified parameters to measure the group
strength.
Financial Transaction-
the loan disbursement process begins.
P.S. The rates of interest are revised
from time to time in keeping with requirements and development
of the economy.
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