“ How can SHG be link to formal Channel of credit” NERCRMP experiences presented by: Ksh. Babita Devi IDO, NERCRMP

NERCRMP International Fund for Agricultural Development (IFAD) North Eastern Region Community Resource Management Project For Upland Areas A project jointly funded by International Fund for Agricultural Development (IFAD) and North Eastern Council (NEC) / Ministry of DONER, Government of India

NERCRMP Declared effective by IFAD in February, 1999 Approved by IFAD Board in April, 1997 Declared effective by IFAD in February, 1999 Start-up workshop in May, 1999 Mid-Term Review conducted in May, 2002 IFAD Interim Evaluation April 2005 Project ends in March 2006 (as on 15th Nov. 2004)

Overall Objective is “To improve the livelihoods of vulnerable groups in a sustainable manner through improved management of their resource base in a way that contributes to preservation and restoration of the environment”

3 states 6 Assam Manipur districts Meghalaya Karbi Anglong, North Cachar Hills, West Garo Hills, West Khasi Hills, Senapati and Ukhrul

2292 SHGs 862 39,203 households villages 997 NaRMG 2,35,218 Beneficiaries

Feature of the SHG under NERCRMP Comprises of 10-20 members Formed base on the affinity group Have vision and mission Organizational and financial management plan Self monitoring system Experience sharing and strengthening weaker SHGs

STAGES Stage one (formation to one year) Stage two: Formation of the group Capacity building : group dynamics, leadership, record keeping, account maintenance, internal saving & lending, group works,social activities. Assessment/grading . Support for revolving fund. Stage two: Linkages with line agencies Linkages with banks Formation of SHG federation Registration

District wise status of SHG Sl. no State Name of the District No of SHG Total Saving (Rs) 1 Meghalaya West Garo Hills 453 818488 2 West Khasi Hills 312 1037308 3 Manipur Senapati 394 2370000 4 Ukhrul 564 4815936 5 Assam North Cachar Hills 249 866294 6 Karbi Anglong 320 822838 Total NERCRMP 2292 1,07,30,864

Grading status Sl. No State District Total SHG Grade A Grade B C Ungraded 1 Meghalaya West Garo Hills 453 144 110 48 151 2 West Khasi Hills 312 80 14 67 3 Assam Karbi Anglong 320 138 113 18 51 4 NC Hills 249 122 60 5 62 Manipur Senapati 394 270 11 6 Ukhrul 564 175 134 Total 2292 1003 722 102 465

Loan received from various Financial Institution Sl. No Name of the district No of SHG Bank / other agencies Loan received (Rs) 1 West Garo Hills 40 SBI, DRDA 1267000 2 West Khasi Hills 6 200000 3 Senapati 64 SBI 1135000 4 Ukhrul - 5 NC Hills 44 450000 Karbi Anglong 30 LDRB Total 184 32,52,000

Purpose of Loan Production Farm sector : cultivation, piggery, poultry & Goat rearing Non farm sector : weaving, handicraft, petty business, food processing Consumption Education Health Social functions

Changes emerging among the SHG Habit of saving inculcated. Loaning among the members in a regular features. Repayment rate is on an average between 80-100% with no default. In most villages they have displaced the traditional moneylender. SHG members are developing habits of going to the banks and even open their individual bank accounts which were never heard of. SHG Micro credit and activities have brought a qualitative change. Group performance assessment held regularly. It has benefited at all level in the project. Linkages with line agencies & Banks are picking up.

Challenges Diversity of tribes, languages, & ethno-aspirations. Mountainous & prolong monsoon. Diversity of tribes, languages, & ethno-aspirations. Poor connectivity of road & transport Inadequate banking facilities & services. Poor response from the line departments. Lack of reliable Agriculture Market Information system together with reliable organisation.

THANK YOU