Bad loans for self-help groups at alarming levels: Nabard

Even there are mixed Self Help Groups where both women and men belonging to different families are members. Until and unless the SHGs developed in increased number in the Wardha District there is not at all possibility of rural employment generation particularly among the women and the elevation of the standard of living is very much difficult. As the present study is confined to Maharashtra State in general and Wardha District in particular the district wise Self Help Groups of entire Maharashtra the data and information of the Maharashtra State district wise is as below. As per the below mentioned Table No.2 it can be observed that there is a minor change in the number of SHGs in comparison to the above Table No.1. This is because of frequent upgradation of Data and information in the Portal. Apart from that it can also be observed that majority of the districts in Maharashtra State are having more than 10,000 Self Help Groups in existence. Hence it could be stated that the SHGs existence and their status is good and continued in the state of Maharashtra.

Even when an individual member cannot repay the instalment amount due to some emergency, the SHG makes up from the common fund – as a very short term measure. Nabfins staff do not have to form new groups as will be described in No 3 of this paper. https://ismart247.in/ But the NBFC-MFIs found that it takes too much time and money to invest in building the institutional strength of a SHG. The above explanation we conclude that SHGs is the main path for the women to improve or develop their role in the society.

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Self-help groups are generally seen as instruments for goals including empowering women, poverty alleviation, developing leadership qualities among poor and needy people. Self-help group’s have had a record of success, but they are gradually losing their significance as an instrument of micro-finance and financial inclusion. The persistence of poverty and gender inequality on the scale at which they still exist are not acceptable. This reflects that SHGs face the issues of declining efficiency and quality, although their quantity is alright. Further, the natures of formal structure within which SHGs operate and function have a fundamental effect on their functioning and efficiency and on the efficiency of micro-finance and inclusion programmes. If the problems of these groups are addressed efficiently and are provided with sufficient institutional and financial support, the efficiency of these groups will improve and “efficient and viable self-help groups could do wonders”. Due to enhancement in efficiency and sustainability, self-help could improve the social capital base not only of members but also of non-members.

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Out of this, it said 94 per cent was deployed in government securities and other financial instruments and Rs 2,945 crore was kept in the form of short-term bank deposits to meet liquidity and contingency requirements, as on March 31, 2021. The number of these self help groups has increased significantly in the last five years. According to NABARD report, there are almost 60 lakh Self Help Group countrywide, covering around 6.7 crore women contributing to making their lives and livelihood better. No loan related and ad hoc service charges/inspection charges should be levied on priority sector loans up to ₹ 25,000. In the case of eligible priority sector loans to SHGs/ JLGs, this limit will be applicable per member and not to the group as a whole. I) Sanction of cash credit limit for 3-5 years based on expected future saving corpus of SHGs.