Credit and Finance

Explore the transformative power of microfinance systems designed for empowering poor women through savings and credit initiatives. Learn about the formation and stabilization of Self-Help Groups (SHGs), effective credit management strategies, and the crucial role of NGOs in facilitating financial independence. Understand the principles of savings, credit, and cash flow, and discover sustainable practices for group fund management. Dive into the intricacies of banking and accounting procedures that support women’s economic empowerment, and uncover networking strategies that enhance the reach and impact of financial services. This knowledge is essential for fostering community trust and driving social and economic development.

Credit and Finance

1 Alternative Microcredit Systems for Savings and Credit for Poor Women

  1. Definition of Microfinance
  2. Demand for Microfinance Services
  3. Supply of Microfinance Services
  4. Microcredit and Women’s Development
  5. NABARD’s Microfinance Strategy
  6. Emergence of Self-Help Groups (SHGs)
  7. Advantages of Financing SHGs
  8. Role of Voluntary Organizations (VOs) in SHGs

2 Formation of Women’s Groups for Thrift and Credit

  1. Self-Help Groups (SHGs) and Their Purpose
  2. Common Practices in SHG Operations
  3. Key Considerations in SHG Formation
  4. Linking SHGs with Banks
  5. NABARD’s Role in SHG Formation and Linkage
  6. Cost-Effectiveness of SHG Intermediation
  7. Models of SHG-Bank Linkages

3 Principles of Savings, Credit and Cash Flow

  1. Principles of Savings
  2. Principles of Credit
  3. Cash Flow Management
  4. Savings Withdrawal and Interest Issues
  5. Loan Appraisal and Sanction Process
  6. Differential Interest Rates

4 Factors in Stabilization of SHGs

  1. Facilitating and Inhibiting Factors in SHGs
  2. Group Stabilization Phase
  3. Role of Facilitators in SHG Growth
  4. Common Challenges in SHG Operations
  5. Importance of Transparent Bookkeeping
  6. Building SHG Cohesion and Community Trust

5 Sustaining Credit Management Groups-Key Issues

  1. Guidelines for Group Fund Management
  2. Loan Sanctioning and Repayment
  3. Bookkeeping and Auditing in SHGs
  4. Controlling Loan Default
  5. Managing Warm and Cold Money
  6. Handling Loan Repayment Defaults

6 Broad Indicators of Group Functioning

  1. Group Structure
  2. Meetings
  3. Office-Bearers
  4. Savings
  5. Loan Management
  6. Bank Transaction and Documentation
  7. Account Keeping
  8. Income Generation Activity

7 Guidelines for Group Sustainability of Selected Credit Agencies

  1. Sustainability
  2. NABARD’s Criteria
  3. Rashtriya Mahila Kosh Guidelines
  4. Measurable Norms
  5. Cautions in Group Management
  6. Field Visits
  7. Bank Financing Scheme
  8. Social and Economic Empowerment

8 Revolving Credit Mechanisms

  1. Revolving Credit
  2. Principles of Sound Lending
  3. Credit Delivery for the Poor
  4. Eligibility Criteria
  5. Tips for Saving and Credit
  6. Training and Bookkeeping

9 Formulating and Implementing Guidelines for Loan Disbursement

  1. Credit Needs and Lending
  2. Ground Rules for Deposits and Credit
  3. Fund Management
  4. Qualities of a Well-Managed SHG
  5. Monitoring and Audit
  6. Handling Conflicts in Lending

10 Formulating and Implementing Guidelines for Loan Repayment

  1. Repayment
  2. Handling Non-Repayment
  3. Risk Fund
  4. Loan Repayment Strategies
  5. Addressing Conflicts in Loan Repayment
  6. Controlling Loan Defaults

11 Banking Procedures

  1. Opening of Bank Account
  2. Promotion of Savings
  3. Differential Savings
  4. Withdrawal of Savings
  5. Interest on Savings
  6. Rural Women’s Bank Case Study

12 Accounting Procedures of SHGs and NGOs

  1. Suggested Guidelines for Accounting System
  2. Books of Accounts
  3. Audit and Bookkeeping
  4. Appointment of Group Accountant
  5. Maintenance of Books
  6. Accounting Entries for RMK Loans to NGOs
  7. Pass Book and Member Registers
  8. Manufacturing Account
  9. Closing Entries
  10. Form of Trading Account

13 NGOs as Catalysts and Animators

  1. Steps Involved in Promoting Self-Help Groups
  2. Functioning of SHGs and Role of NGOs
  3. Process of Development of SHGs
  4. Cluster Associations and Federations
  5. Role of NGOs in Different Development Stages
  6. Activities of the SHGs

14 NGOs as Umbrella Organizations for Credit

  1. Need for Microfinance
  2. Concept and Features of Microfinance
  3. Rashtriya Mahila Kosh (RMK) and Its Role
  4. RMK’s Loan Schemes
  5. Nodal NGO Scheme
  6. Benefits of Microfinance for Poor Women
  7. RMK’s Market Development and Advocacy Roles
  8. Criteria for NGO Eligibility for RMK Funding

15 Networking Strategies

  1. Concept of a Network
  2. Objectives of Forming a Network
  3. Structure of a Network
  4. Activities Undertaken by a Network
  5. Steps for Forming and Registering a Network
  6. Networking with Banks and Financial Institutions
  7. Training and Capacity Building for Networks
  8. Challenges in Network Formation

16 Supporting Women’s Groups

  1. Issues in Formation of Groups
  2. Linkages with Banks
  3. Lending Operations
  4. Support Provided by NGOs
  5. Loaning under International Schemes
  6. Group Savings, Loan Limits, and Common Fund
  7. Lending Pattern
  8. Emerging Issues in Rural Development Banking

17 SHG Clusters and Federations

  1. Concept of SHG Clusters and Federations
  2. Formation of Clusters and Federations
  3. Roles of SHG Clusters and Federations
  4. Case Study: Grameen Mahila Swayamsiddha Sangh
  5. Management Information System (MIS)
  6. Transparency and Information Sharing
  7. Funding and Staffing in SHG Federations