APMAS
APMAS
BUILDING THE DEMAND STREAM:
THE NEED FOR INVESTMENT
Sa-dhan Conference, 17th March ‘10
CS Reddy, creddy@apmas.org
APMAS
APMAS
APMAS-Vision & Mission
Vision
Sustainable Women Self Help Movement in India
Mission
Enable Self Help Promoting Institutions to facilitate strong
and vibrant SHGs, SHG federations and commodity
cooperatives providing quality services to their members.
APMAS believes in self reliance of community based
organizations engaged in microfinance and livelihood
promotion, strives for excellence in whatever it does and
promotes women empowerment
APMAS will emerge as a national level support organization by
influencing public policy to create an enabling policy and
regulatory environment to support the self help movement
APMAS
APMAS Achievements
• Trained more than 90,000 professionals & paraprofessionals on SHG & SHG federation related
• Developed several training modules & manuals.
• Quality assessment (rating) of 450 SHG feds.
• Capacity Building support for livelihood promotion.
• More than 30 studies conducted
• Several policy workshops & conferences organized
• Anchoring National Network (ENABLE)
• Supporting SHG quality improvement in Bihar, UP,
MP, Orissa and Andhra Pradesh. Demand based
support for other states.
APMAS
APMAS
Microfinance Trends (March 2010 estimates)
• Almost 7 million SHGs have a bank account
• Almost 5 million SHGs have bank loan
outstanding of Rs.28,000 crores
• MFI reach 25 million clients
• MFI loan outstanding Rs.22,500 crores
• Total member/client outreach 61 million
• Total loan outstanding Rs.50,000 crores
• More than 100,000 SHG federations in the
country.
APMAS
Quality Issues
• SHGs are to be autonomous, self-managed and self-reliant
groups. The dependence on promoters is high.
• Limited training for SHGs (member education)
• Though Rs.10,000 per SHG is needed as promotional cost, not
even half of that is invested in SHG capacity building.
• SHGs offer savings service to members
• However, promoters place very little emphasis on savings
mobilization & utilization (eg. SHGs don’t pay interest on
members savings)
• Though SHG – bank linkage is facilitated, utilization of loans
for livelihoods does not get due attention.
• SHGs are increasingly becoming Credit Management Groups
(CMGs)
• SHGs are becoming a channel for bank loans & for
government schemes.
• MFIs have very limited focus on financial literacy
APMAS
Financial Literacy – What has been done?
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GoI & RBI are committed to financial inclusion
Financial literacy is a pre-requisite for FI
Two funds are established: FIF, FITF at NABARD
Opening of no-frills accounts by banks
To accelerate financial inclusion, technology solutions
are being explored (smart card projects, mobile
technology, etc)
• National Alliance for Financial Literacy (NAFil) is
promoted by Indian School of Microfinance for Women
• Use of Business Correspondent (BC) model
• Limited work financial literacy reaching borrowers.
APMAS
What Can Be Done?
• NABARD to establish a task force on SHGs (SHG
quality, bank linkage, SHG federations, financial
literacy and social agenda)
• Autonomous state specific funds to be established
jointly by NABARD, State Governments & SLBCs to
fund capacity building of SHGs & financial literacy
• Campaign on savings mobilization & responsible
borrowing.
• SHG federations to be strongly supported (funded) to
work on financial literacy & to promote bank linkage
• A strong component of training SHG promoters and
MFOs on financial literacy.
• Use of information technology to reach SHG
members and MFI clients
APMAS
APMAS
APMAS
APMAS
APMAS
Open for discussion
&
Thank You
For further details contact:
APMAS
Plot No. 20, Rao & Raju Colony
Road No-2, Banjara Hills, Hyderabad
Ph: +91-40-23547952/27; Fax: +91-40-23547926
Web: www.apmas.org;
www.shggateway.in
email: info@apmas.org