Social mobilisation and empowerment of women

1
AP Model for comprehensive poverty eradication
Social mobilisation and empowerment of women
2
Visionevery poor family out of poverty

• improved status in society
• comprehensive food security freedom from hunger
• income - minimum of Rs.5000/- per month, from 3 -
  4 stable livelihoods (agriculture, allied,etc)
• house-hold expenditure controlled
• Comprehensive risk management
• good shelter
• good health and quality education

3
Holistic model covers all dimensions economic
and social

• Inclusion - 90 of rural poor in S.H.Gs
• Special focus on ultra poor and vulnerable
• Gender balance intra family equity
• Micro finance
• Food Security
• Health Nutrition
• Agri - Marketing
• Non-Pesticidal Management of Agriculture
• Dairy
• Jobs
• Insurance

4
A.P Federation Model
Z S
200,000 400,000
MMS
4000 6000
-
V.O
150
-
200
SHGs
SHGs
SHGs
SHGs
SHGs
5
Outreach

• S.H.Gs in all villages of AP
• More than 90 of rural poor organised
• 87.5 lakhs rural women organised into 7.0 lakh
  S.H.Gs (upto March 2007)
• (35 of all S.H.Gs in India country are in A.P)
• 33,747 VOs, 1083 MSs and 22 Z.Ss formed
• Universal coverage of all poor

6
Total financial inclusion
recent intervention for addressing the high
cost debt of the poor
7
Objectives

• To address all the needs of the poor-deepen the
  credit inflow
• To transform money lender dependent rural poor
  into bankable community
• To eliminate high-cost interest regime form the
  lives of poor
• To arrest the resource drain from the poor
• To build up diversified multiple livelihoods of
  the poor

8
SHG-Bank Linkage in AP
9
Expenditure Portfolio of the Poor

• Food
• Health problems minor/major
• Education
• Interest outflow
• Working capital - farm/non-farm
• Assets land, cattle, non-farm
• Housing construction, repairs
• Life cycle ceremonies

10
Indebtedness of the poor

• Each asset-less rural poor family at present
  needs Rs.40,000 credit
• The bank finance accessed by the poor family, at
  present is 10,000 gap 30,000
• Gap at State level Rs.25,000 crores
• Debt from informal sources 15000 crs
• Interest payments to informal sources Rs. 5000
  crores per annum

11
The impact of high cost debt on a poor family

• Per capita annual debt servicing burden Rs.6000
• 10 40 of income for servicing high cost debt
• This burden is neutralizing all poverty
  eradication efforts aimed at income generation
• Priority to address high cost debt

12
Cost of servicing loans from money lenders/MFIs -
per S.H.G
Bank linkage per district 2006-07 150
crores Annual interest paid by all SHGs 184
crores
13
T.F.I Process

• Effective utilisation of the S.H.G network
• Facilitate each SHG to identify all the financial
  needs of each members family
• Development of Micro-Credit Plan by the group
  itself
• Participation of Bank Manager in the process of
  development of MCP by the group

14
T.F.I Process

• Role of S.E.R.P
• Pro active role of SLBC
• Involvement of all banks
• Adoption of Micro credit planning process as the
  basis for bank linkage, and, not multiples of
  savings
• CRP strategy
• Continuous nurturing of S.H.Gs by the S.H.G
  federations and D.R.D.As
• Pavala vaddi
• Continuous monitoring of recoveries

15
Micro Credit Plan

• Micro Credit Plan components
• - Debt swapping- the loans taken by the poor
  from money lenders at high rate of interest
• - financial requirement for assets acquisition
  and working capital
• - financial requirement for social needs food
  security, health, education etc.,

16
(No Transcript)
17
T.F.I Achievement

• Implemented in 304 villages with 183 crores in
  2006-07
• In 07-08, it is planned in 5000 villages with
  Rs.4,000 crores to cover 10,00,000 families
• Quantum of finance ranges from 80 lakhs to 1crore
  50 lakhs to each village
• Per group finance quantum jump from 83,600 to
  450,000

18
Bank Linkage amount taken under T.F.Iin
Maharajpeta (V) Consisting of Maharajpet,
Gopuralam Dontanapalli Hamplets of Rangareddy
Dist
No. of SHGs 25 No. of Members 264
19
Loan Amount Taken Under TFI in Gopularam H/o
Maharajpet (V) of Rangareddy District
No. of SHGs 11 No. of Members 96 Social
Category SC
20
Relief in interest burden per annumin Gopularam
H/o Maharajpet(V) of Rangareddy District
No. of SHGs 11 No. of Members 96 Social
Category SC
21
Building up of Assets of the poor in T.F.I.
Village Gopularam
No. of SHGs 11 No. of Members 96 Social
Category SC
22
Increase in Annual Income of the poorin
Gopularam H/o Maharajpet (V) of Rangareddy
District
No. of SHGs 11 No. of Members 96 Social
Category SC
23
EFFECTIVE IMPACT OF TOTAL FINANCIAL INCLUSION ON
THE POOR IN GOPULARAM h/o MAHARAJ PET (V)
24
(No Transcript)
25
(No Transcript)
26
(No Transcript)
27
(No Transcript)
28
Impact on the bank branch

• Participation of bank manager in the process
• Increase in the access by the poor to the bank
• 100 recovery in new-intervention villages
• Increase in the profitability of the bank- 100
  increase in rural branches

29
Impact on the poor

• Huge mental relief in switching over from money
  lender to the bank
• Reduction in interest payments in each family
• Increase in asset base of the family
• Unleashing of entrepreneurial spirit of the poor
• Increase in health conditions of the poor-as it
  results in improvement in food in-take by the
  poor
• Improvement in childrens education and higher
  education in poor families

30
Sustainability of the Model

• Enhanced savings by individuals, in S.H.Gs and in
  V.Os
• Social Security
• - RD for the children of members
• - Life, health and asset insurance
• Reduction in expenditures
• - Food Security
• - NPM
• - Micro Irrigation
• Intervention in value chains of key livelihoods
  of the poor

31
Thank You