SHG Bank Linkage Programme

SHG Bank Linkage Programme, initiated by NABARD in 1992-03, is acclaimed as the biggest ever programme in the entire world for emancipation of poverty, focussing on the poorest of the poor and the so far unreached and under served segments of the society. The revelation that women are good at savings and debt redemption, has prompted NABARD to select women as the target group of the SHG Bank Linkage Programme. This first bold attempt towards feminisation of credit brought out the inherent potential of the poor womenfolk in waging a war against hunger and emancipation through savings linked credit. The family centric approach, led by women, catapulted the fairer sex to the centre stage of the movement.

Under the guidance of NABARD, in the year 1997 Kakkengad Farmer's Club, initiated the process of formation and nurturing of Self Help Groups in the Muzhakunnu Grama Panchayat and linking them with NMGB. What started as a small initiative has now become a big movement which made a sea change in the lives of the people at the bottom of the pyramid. As many as 260 SHGs are under the fold of the Farmers Club covering more than  4000 families out of which 245 groups are credit linked. The aggregate credit assistance provided to these groups by NMGB exceeded Rs. 300 lakh out of which the total loans outstanding aggregated to Rs. 83 lakh. To coordinate the activities of the SHGs, the Farmers Club has formed a Coordination Committee with representation from each ward of the grama panchayat. Loan facilitation, monitoring of the repayments and capacity building of the members etc are taken care of by the Coordination Committee.

The Kakkengad Farmers' Club has been using the SHGs under its fold as an effective platform for social re-engineering and women empowerment leading to the economic upliftment of the downtrodden who were considered not bankable earlier. Under the leadership of the Club these SHGs spearheaded a campaign to make the grama panchayat free from the clutches of usurious money lenders through an unique debt swapping scheme introduced by NMGB under the guidance of NABARD. To insulate the beneficiaries of the debt swapping scheme from falling back into debt track again, the Farmers Club with support from NABARD embarked upon an ambitious project to form around one hundred activity groups from out of the members of SHGs and facilitate credit support from NMGB under the concept of financing Joint Liability Groups for setting up of micro enterprises after providing training in the select avocations with the help of NABARD, RUDSETI, KVK etc. No doubt, the SHG Bank Linkage model promoted by the Club has made a significant contribution in making a visible positive impact on the economy and social status of Muzhakkunnu grama panchayat.

A news report showing the contribution of SHGs, in uplifting the poor.