Self help group has a secure place for poor

Self help group has a secure place for poor

India
Organization type: 
nonprofit/ngo/citizen sector
Budget: 
< $1,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

Self help group is the best credit delivery system. The poor required cash, cash flow, credit and collateral. Money can easily be percolated amongst the disadvantage through the micro credit program and the members can adopt the journey from poverty to wealth.

About Project

Problem: What problem is this project trying to address?

Money lenders, rich, capitalists, big landlords, high rate of interests of money lenders, different faiths, casts, creed, superstitions, marketing of products, high cost of production, price rise of daily use commodities, high price of land, non availability of raw material, no security of life, non availability of insurance facility, natural calamity and non availability of disaster funds . Lack of education and medical facilities, high rate of interest of financial institutions including banks, shortage of safe drinking water, lack of transport facilities and deteriorated conditions of roads.

Solution: What is the proposed solution? Please be specific!

The poor can be empowered through micro finance by formation of self help groups. The members are motivated to keep away from hunger, malnutrition, disease, and narrow setting; send their children to school in early hours; move from bonded labor to paid employment; keep away from money lenders; shift from naked foot to leather shoes; create trust amongst members; keep away from social evils; adopt good health and clean environment through mutual cooperation; and live a life of dignity and honor. The members get education, knowledge, modern techniques of various jobs, training, skill etc. It is an important tool to provide communication technical infrastructure, development, friendly transparent, empowering rural people through volunteerism, poverty reduction, and youth empowerment .They learn about science and scientific methods. Explore careers opportunities and improve education and skills for employment. Each member carries individual projects of food, nutrition, health and fitness, caring for home furnishing and improvement, money management and banking.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

I would just tell my personal story regarding the formation of self help groups in the command area of Regional Rural Bank, branch office village Doomchheri Block Morinda tehsil and District Ropar Punjab. Prior to posting at branch office Doomchheri, I was assigned the job as Recovery Officer Ropar (Punjab), and was supposed to visit each and every chronic defaulter to effect recovery of loan financed by the respective branches. I found that large number of borrowers especially the landless was living a life of misery, of extreme poverty, arranging a day’s meal of the family on the mercy of big landlords, capitalists and money lenders. They were working as bonded labour. Their poverty was associated with illiteracy, superstitions, ignorance, narrow settings, crowded houses and no privacy, hunger, malnutrition, and its related diseases. What I found that people had availed loan from the bank to repay the loan of money lenders and no option except re-availing from the money lenders to refund the bank loan. In addition a few had also availed to meet out social obligations. They were away from literature, romance, entertainment, legends etc. They were even lacking access to safe drinking water. I finally thought in my mind to solve their problems through the concept of self help group. In mid 2000, when I was given the new assignment as Manager branch office Village Doomchheri (the office which was shifted to Morinda town because of terrorism and resifted to the village), I succeeded to launch a Farmers Club and people engaged in agriculture, landless agriculturists, professionals and allied activists were made members, covering the entire service area of the branch. The farmers were made aware of the modern techniques of farming, credit facilities and the model of Self Help Group.
About You
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Section 1: About You
First Name

Resham Singh

Last Name

Singh

Country

, PB

Section 2: About Your Organization
Is your initiative connected to an established organization?

Organization Name
Organization Phone
Organization Address
Organization Country
How long has this organization been operating?

Your idea
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Innovation
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Impact
Actions

It was the turn of implementation of thought of microcredit through the formation of self help groups. As per my personal experience, the following was the background of forming self help groups:
The people’re made aware about their present insecurity of life as compared with the rich & their life style.The poor have no cash, no cash flow, no credit, no collateral, so they were persuaded to form into groups to depend upon each other resources; they were educated to keep away from money lenders. Moneylenders were lending @ 60%-80% PA that too against the deposit of gold ornaments & other assets; They were motivated to keep away from hunger, malnutrition, illiteracy, diseases & narrow setting; they were motivated to send the children to schools in early hours; move from bonded labour to paid employment; shift themselves from naked foot to leather shoes, from rural huts to row of concrete houses, live a life of dignity, peaceful & healthy; social sanction of elder people was sought for participation of women in the movement of formation of self help groups; I arranged the monthly meeting, & appointment of president, secretary,& cashier of the groups,& establishment of democracy (...)

Results

(...)internal loaning, recovery process, discipline; the assistance & cooperation of the farmers club was sought as a permanent institution & will work as a guardian of the self help groups; I made my office easy to use. Trust was created with effective communication. Stationary articles were supplied to the groups with proper guidance; linkage & various trainings like vermi- compost etc., monthly collection, opening of saving fund accounts, its operation, issue of cheques, settlings various terms & conditions , linkage, training.
With the assistance of Chief Volunteer of Farmers Club, the Community Development program was launched to provide free electrical training to the young people & cutting/tailoring training to the women with the help of Government Polytechnic Ropar, Punjab. The program lasted for about two years of six months batches. 96 boys & 106 women got the training & certificates duly signed by the Principal, Government Polytechnic Ropar, Instructor & Chief Volunteer of Farers Club. The main idea was to create employment, to keep the street boys away from the social evils & to bring close to the financial activities of the bank.

How many people will your project serve annually?

101‐1000

What is the average monthly household income in your target community, in US Dollars?

Less than $50

Does your project seek to have an impact on public policy?

Yes

If so, how?

annexure 1

Sustainability
What stage is your project in?

Operating for more than 5 years

Does your organization have a board of directors or an advisory board?

Does your organization have any non monetary partnerships with NGOs?

Does your organization have any non monetary partnerships with businesses?

Does your organization have any non monetary partnerships with government?

Please tell us more about how partnerships could be critical to the success of your innovation.

Since so far I have been working individually on this project as an employee of Punjab Gramin Bank, there are no partnerships formed with any other institution / organization. The team of Mail Today visited the village to study and highlighted in on 4th Nov 2009 under the title ‘ A hero if ever there was one’ ‘ For the massive Indian economy, it may not be an achievement. But about a decade old micro credit initiative of a banker in Punjab in transforming the lives of a marginalized rural lot literally .About 1000 families whom the bank Manager benefitted through innovative implementation of credit schemes to make themselves self sufficient. The rural folk now recount how difficult it was to overcome the challenges. But they are happy that they do not go to landlords for loans any more. Each and every household was a success story. One can visit www. Shgwealth.org. When the banker attempted to sell the idea of setting up self help groups involving labourers and other sections residing in the villages, people laughed at him. They were convinced that the poor villagers and unemployed youth many of them addicted to drugs would never respond to his initiative. The banker proposed that

We would like to learn more about how your initiative is financially supported. Please explain your business plan/revenue model

Being a Banker, the finances are within my power as per Bank/NABARD guidelines. There are Muslim families in big village Sahauran. Salma and her sister in law were elected panches without spending a single penny. Salma and her sister in law’s election have debunked the belief that caste plays major role to win elections. Caste does play a role but one’s good deeds have a bigger role in victory in elections. Salma had won due to her social work in the village. A woman with courage Salma virtually a sultan in the village has set up the Mata Raj Kaur SHG there. The SHG funds villages making efforts to earn a living. Bhupinder kaur Kamaljit kaur, Jaswinder Kaur, Sarabjit Kaur, Manjit Kaur and several other women have formed SHGs engaged in riding a the village of poverty and making the youth of poor families, self reliant. Money lenders have been driven out of the village even one of them was thrashed when they insisted on charging 80 % interest.
Recently as a branch manager I have promoted about 10 self help groups in the command area of extension counter Grangan Tehsil Kharar District SAS Nagar Mohali near Chandigarh on the similar principles to eradicate poverty through micro credit. The training program was launched on food and vegetable processing for the members of the self help groups. The farmers club has also been formed under the guidance of National Bank for Agriculture and Rural Development Regional Office Chandigarh for furthering agriculture interests and social interaction. The farmers club will also look after the interests of the SHG members. After a few months these groups will be sanctioned overdraft limits to invest in the existing activities. I have adopted a village named Sill which is about two kilometers away from the branch to implement micro credit program. In the month of July a student from Oxford University London visited the command area to interact with the members of the self help groups. The girl student came to know about from the media reports. At present the micro credit program through SHG and formation of farmers club has been concentrated in the command area of Branch Grangan district Mohali where 10 self help groups of disadvantage people have been formed and Chardi Kala Farmers club has also been promoted. A training on food and vegetable processing has been imparted to the women members of SHGs and farmers club, the t

The Story
What was the defining moment that led you to this innovation?

On 11th September 2004, HE the Governor of Punjab visited village Doomchheri where the thought of SHG was concentrated , to interact with the group members and to further strengthen , motivate, to know the problems if any. At that time there were 32 SHGs having 375 members, out of which 21 were of women having about 250 members of 8lacs its savings and 17 lacs bank loan without subsidy etc. The honorable Governor, Punjab conveyed his happiness to know the concept of eradication of poverty and to know the success story of two groups. One was Sahibzada SHG village Doomchheri formed on 29th August 2003 having 13 landless members. The male members saved Rs200 pm as monthly contribution and after thorough discussion to combat poverty the group purchased second hand tractor trolley and some other implements with the bank’s financial assistance to harvest wheat crop and to do other custom work (earlier the members were daily wage workers and some were bonded laborers). They adopted the journey from poverty to wealth and changed the life style of their families by earnings at par with landlords. On hearing the news of purchase of tractor by the SHG, the General Manager, NABARD, Regional Office Chandigarh Sh P. Satish visited the members to garland the tractor.

The second group named Dr Ambedkar SHG V. Kajauli was formed on 3rd August 2002 with 10 landless members but due to some internal conflicts in was reorganized. The members were engaged in roap macking activities and were earning a very small amount and were not in a position to feed their families. The group succeeded to get 8 acres of land on lease base for the period of one year with the financial assistance of the bank. The group raised paddy and other crops in such a way and set an example of eradication of poverty through the concept of SHG.

After interaction with the members of the groups the Honorable Governor appreciated the vision of the manager and stressed to implement the thought of SHG in the other part of the state. The visit of the head of the state was covered by the media in such a way that motivated the members for the sustainability of the institution of SHG. We brought to the notice of the honorable Governor regarding charging of stamp duty of Rs 300 by the state government at the time of inter- se agreement to avail the loan / overdraft limit . The demand to remove the stamp duty had also been raised through the state level bankers committee Punjab but unfortunately it was dismissed by the government with the plea that the state would not tolerate revenue loss. The honorable Governor called the undersigned in his office to know the details of the stamp duty of Rs 300. The honorable Governor strongly recommended to the state on the same day for its waiver and finally the government issued the notification for immediate dispense with of stamp duty at the time of inter-se agreement by the SHGs.

Tell us about the social innovator—the person—behind this idea.

I would just tell my personal story regarding the formation of self help groups in the command area of Regional Rural Bank, branch office village Doomchheri Block Morinda tehsil and District Ropar Punjab. Prior to posting at branch office Doomchheri, I was assigned the job as Recovery Officer Ropar (Punjab), and was supposed to visit each and every chronic defaulter to effect recovery of loan financed by the respective branches. I found that large number of borrowers especially the landless was living a life of misery, of extreme poverty, arranging a day’s meal of the family on the mercy of big landlords, capitalists and money lenders. They were working as bonded labour. Their poverty was associated with illiteracy, superstitions, ignorance, narrow settings, crowded houses and no privacy, hunger, malnutrition, and its related diseases. What I found that people had availed loan from the bank to repay the loan of money lenders and no option except re-availing from the money lenders to refund the bank loan. In addition a few had also availed to meet out social obligations. They were away from literature, romance, entertainment, legends etc. They were even lacking access to safe drinking water. The self help group is a unique product to help the poor, to improve their life, systematic way of creating wealth. Self help group is the best credit delivery system. Members have to depend upon other people resources, ideas, experience. SHG delivers positive attitude, respect for others, honesty, awareness, a strategy, courage and wisdom .Poor should have the right to borrow.

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Which (if any) of the following strategies apply to your organization or company (check as many as apply)

Policy advocacy to strengthen property rights or increase security of tenure.

Please explain how your work furthers one or many of the above strategies (if you selected “other”, please explain your strategy)

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