Wednesday 25 September 2019

Self Help Group-5 , Banking Fundamentals to Know for Students.

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What  SHGs do?


•  Meet regularly 

  Compulsory  attendance

  Maintain records

  Create & develop common fund
  Internal  lending
  Discuss the problems  of  members
  Avail  bank loan
  Encourage income-generating activities
  Arrange skill development training
  Inculcate banking habit
  Take up joint ventures
  Take part  in  community / social activities


SPECIAL  FEATURES OF  SHGs

  Flexibility,   transparency  &  autonomy
  Democratic functioning
  Self-discipline & conflict resolution through consensus
  Collective  leadership & decision making
  Creation &  development of  common fund
  Loans  without collateral
  Small, Timely  &  need-based  credit at doorstep
  Market-related interest rates
  Default management  through  peer pressure
  Transparency  in  operations
  Repeat  loaning  with  impressive recovery
  Take up  social and cultural activities

Credit  flow  from  SHG  to  members
   Loans  for  -
  a)  Consumption purpose
  b)  Production purpose
  c)  Consumption  &  production purpose  

Advantages  of  SHG  to  members

  Credit  delivery  at doorstep
  Flexible norms  in  credit dispensation
  Mutual trust and co-operation
  Development  of  thrift  habit among poor
  Financial  &  social empowerment
  Employment  generation
  Confidence building among members
  Improvement in  standards  of  living
  Entrepreneurship development
  Asset  creation
  Low-interest rate
  Availability  of  small and need-based  credit
  No  security
  Convenient  repayment schedule

Advantages  to  Banks
•  Wider coverage
  Less  desk work  to  field staff
  Low  transaction  cost
  High  recovery
  Externalization  of  credit  function
  Goodwill creation &  image  building
  Meeting social  objective
  Profitable
Books maintained by SHGs
MINUTES BOOK
ATTENDANCE REGISTER  
SAVINGS &  LOAN REGISTER
WEEKLY / FORTNIGHTLY / MONTHLY MEETINGS REGISTER
MEMBERS PASS BOOK 
vThe quality of books of accounts maintained by SHGs is an area of concern.
We may encourage Local Book Writers in association with concerned agencies promoting these SHGs.
Such arrangement may be on a cost-sharing basis with some support from the Bank. 



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