Description
The PPT helps to find out those factors that directly and indirectly influence the inclination of the Self Help Groups towards availing of bank loans.
Self Help Groups and Bank Loans
Bridging the Gap
Outline
• • • • • • • Introduction Project Objective Research Methodology Analysis & Findings Recommendations References Acknowledgements
Introduction
• Financial inclusion – the delivery of affordable banking services to the lower income groups • Most effective vehicle for financial inclusion: the Self Help Group
• NABARD began promotion of financial inclusion through SHGs in 1989
Project Objective
Managerial Objective To find out why the Self Help Groups are not availing of the loan facilities from the bank Research Objective To find out those factors that directly and indirectly influence the inclination of the Self Help Groups towards availing of bank loans.
Research Methodology
• Pilot study ? Exploratory Research
• Main Study
– Areas covered: Rivona, Curchorem, Codli, Sanquelim, Mayem, Honda, Velguem & Bicholim – Sample Size: 17
Analysis & Findings
• Key Findings • Other Findings
Key Findings
• Average distance of bank from an SHG - 3 kms
– Reach of financial institutions is not a problem
• All SHGs have bank accounts
– First level linkage present
Key Findings
• Procurement of loans easier as SHG • User friendly loan procurement process • Only 30% of SHGs have availed bank loans
– Second level linkage absent
Key Findings
• Internal lending active in all SHGs • Interest distributed amongst the members • Members find internal lending more convenient for emergencies and low amounts
– One of the reasons why bank loans not being availed of
Key Findings
• Usual loan amount: Rs. 2,000 – Rs. 40,000 • Members not interested in starting business
– No need for bank loans
Other Findings
• Perceived Benefits
– Brought the community together – Improved infrastructure facilities in the village – Personality development – Social empowerment – Development technical skills – Financial support – Miscellaneous benefits
Other Findings
• Expectations Gap
– Increased training in various vocations – Marketing / selling support – Information flow
Recommendations
• Carry out market research
– Prepare research plan (B-School / MFG) – Tie up with NSS Units of colleges to carry out research – Analyze Data (B-School / MFG)
• Branding of MFG
– Important for establishing & maintaining linkages – Promotion (by mining companies) of MFG activities as a CSR initiative
Recommendations
• Maintain regular contact with SHGs
– Maintain telephonic contact – Send updates to these SHGs
References
Reports / Journals • Mineral Foundation of Goa Annual Report 2007 -08 • NABARD SHG Handbook Websites • www.mfgoa.com • www.nabard.org
Acknowledgements
• Mineral Foundation of Goa
– Mr. S. Sridhar – Dr. Sachin Tendulkar – Other staff at MFG
• Prof. Raghunath Rudran
Chairman – PGP, TAPMI
Thank You
doc_502092429.pptx
The PPT helps to find out those factors that directly and indirectly influence the inclination of the Self Help Groups towards availing of bank loans.
Self Help Groups and Bank Loans
Bridging the Gap
Outline
• • • • • • • Introduction Project Objective Research Methodology Analysis & Findings Recommendations References Acknowledgements
Introduction
• Financial inclusion – the delivery of affordable banking services to the lower income groups • Most effective vehicle for financial inclusion: the Self Help Group
• NABARD began promotion of financial inclusion through SHGs in 1989
Project Objective
Managerial Objective To find out why the Self Help Groups are not availing of the loan facilities from the bank Research Objective To find out those factors that directly and indirectly influence the inclination of the Self Help Groups towards availing of bank loans.
Research Methodology
• Pilot study ? Exploratory Research
• Main Study
– Areas covered: Rivona, Curchorem, Codli, Sanquelim, Mayem, Honda, Velguem & Bicholim – Sample Size: 17
Analysis & Findings
• Key Findings • Other Findings
Key Findings
• Average distance of bank from an SHG - 3 kms
– Reach of financial institutions is not a problem
• All SHGs have bank accounts
– First level linkage present
Key Findings
• Procurement of loans easier as SHG • User friendly loan procurement process • Only 30% of SHGs have availed bank loans
– Second level linkage absent
Key Findings
• Internal lending active in all SHGs • Interest distributed amongst the members • Members find internal lending more convenient for emergencies and low amounts
– One of the reasons why bank loans not being availed of
Key Findings
• Usual loan amount: Rs. 2,000 – Rs. 40,000 • Members not interested in starting business
– No need for bank loans
Other Findings
• Perceived Benefits
– Brought the community together – Improved infrastructure facilities in the village – Personality development – Social empowerment – Development technical skills – Financial support – Miscellaneous benefits
Other Findings
• Expectations Gap
– Increased training in various vocations – Marketing / selling support – Information flow
Recommendations
• Carry out market research
– Prepare research plan (B-School / MFG) – Tie up with NSS Units of colleges to carry out research – Analyze Data (B-School / MFG)
• Branding of MFG
– Important for establishing & maintaining linkages – Promotion (by mining companies) of MFG activities as a CSR initiative
Recommendations
• Maintain regular contact with SHGs
– Maintain telephonic contact – Send updates to these SHGs
References
Reports / Journals • Mineral Foundation of Goa Annual Report 2007 -08 • NABARD SHG Handbook Websites • www.mfgoa.com • www.nabard.org
Acknowledgements
• Mineral Foundation of Goa
– Mr. S. Sridhar – Dr. Sachin Tendulkar – Other staff at MFG
• Prof. Raghunath Rudran
Chairman – PGP, TAPMI
Thank You
doc_502092429.pptx