a. Linkage Model
SHG - Bank Linkage Programme was launched in 1992by NABARD. This was first time SHGs were directly financed by banks. According to NABARD about 5.8 crore poor households have been linked with banking system through this model. The Indian Model is a “Linkage Model", as it is based on strengths of various partners: - The NGOs, the rural poor and banks.
b. Financial Support
RBI advises commercial banks to consider lending to SHGs as part of their rural credit operations. Many apex bodies or wholesalers provide loans to financial intermediaries for on-lending to SHGs. Some of these institutions are: - SIDBI, Rashtriya Mahila Kosh, Housing Development Finance Corporation, …show more content…
• Windows were 10% of SHG members.
• 38% of SHG members work as casual labourer , 29% work on their own agricultural land and 17% are engaged in a non - farm enterprise.
6. Problems faced by SHGS
a. Regional Imbalance
The success of SHG programme is limited. The Southern States account for 70% of funds. There is a need for better linkage efforts in northern, central, eastern and north eastern states. These states have high concentration of rural poor.
b. Poor Management
Many SHGs suffer due to poor management. In many cases internal controls are lacking. There has been poor management of cash flows. Roles and responsibilities of members and office bearers are not defined properly.
7. Problem of micro enterprises
Many micro enterprises developed by SHGs lack skills and strategy to survive. Even the NGOs fail to provide them with necessary linkage and market survey report.
a. Dropouts
There are many incidences of dropouts from groups. The main causes are migration for employment and inability to make regular savings. The dropout rate is 11% for very poor and 7% for non-poor.
b. Lack of Business …show more content…
The nodal agency shall be the Master Policy Holder under the scheme.
6. Verification of age
The nodal agency has to satisfy that the age of the members is in between 18 years completed & 59 years nearer birthday.
The verification can be done with the help of-
• Ration card,
• Extract from Birth register,
• Extract from school certificate,
• Voter’s list, etc.
7. Premium
The premium to be charged initially under the scheme will be Rs 200/- per annum per member for a cover of Rs 30000/- out of which 50% will be subsidized from the Social Security Fund.
8. Benefits
a. Natural death
Upon death of a member during the period of insurance cover the Sum Assured of Rs 30000/- under assurance, then in force, shall become payable to the nomiee.
b. Accidental death/ Disability benefit
The following benefits are provided to members in case of accident, during the period of insurance cover.
• On death, due to accident Rs 75000/-
• Permanent Total Disability, due to accident Rs 75000/-
• Loss of 2 eyes or 2 limbs. OR
• Loss of one eye & one limb, in an accident.
• Loss of one eye or one limb, in an accident Rs 37500/-
c. Scholarship