Microfinance – NABFIN & E Shakti Program
Access to Credit (NABFIN)
Access to credit is one of the major challenges at grass-root level for small and marginal farmers. People depend on local moneylenders and microfinance who give credit at very interest rates of interest. In case of Money lenders people are forced to mortgage their land as a collateral and when they default, they end up losing their lands. While Banks are one of the best options to access cheap and secure credit, the conservative attitude of most Banks makes this credit source inaccessible to the most poor and marginalised households. The incidence of indebtedness is very high in the area.
NABFIN came forward to provide credit to poor and excluded communities with one condition that they had to be in SHGs later NABFIN accepted Joint liability group to extend credit. Last one year has been very tough both for disbursement and collection of loan. Due to lockdown and restrictions in the initial months, repayments are severely affected. In the last one year, 65 SHGs have taken a loan of Rs 1.565 crore and 78 JLG had taken loans worth Rs 1.1225 crore from NABFIN for various purposes. Total number of members who had taken loan is 814 which amounts to total Rs 2.6875 crore. The average loan size per member is Rs 33016.
SHG Digitalisation by NABARD E-Shakti Programme:
CARM-DAKSH is implementing E-Shakti Programme to implement digitisation of SHGs. Under this program, the Community Resource Persons (CRP) collect monthly information on SHGs saving, interloaning and repayments. They updated the data on the App developed by NABARD. This helped Banks and other Institutions/departments to avail the information on SHGs. CARM-DAKSH was monitoring the programme and supporting in strengthening the capacity of SHGs. Around 56 CRPs supported this programme covering 1898 SHGs in four blocks of Bilaspur district. They tracked regularity in meetings and financial linkage. The Project ended in March 2021.