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MicroFinance Sector

Support for training and capacity building of clients for SHG-BL PROGRAMME

Giving due recognition to training and capacity building of various stakeholders such as bankers, NGOs, Government officials, SHG members and trainers, NABARD has trained around 47.33 lakh participants from the Financial Inclusion Fund till 31 March 2022, in the process giving shape to a strong back up team for implementation of the programme.

Micro Enterprise Development Programme (MEDPs)

NABARD since 2006 has been supporting need-based skill development programmes (MEDPs) for matured SHGs which already have access to finance from Banks. MEDPs are on-location skill development training programmes which attempt to bridge the skill deficits or facilitates optimization of production activities already pursued by the SHG members. Grant is provided to eligible training institutions and SHPIs to provide skill development training in farm/off-farm/service sector activities leading to establishment of micro enterprises either on individual basis or on group basis. Over the years around 5.85 lakh SHG members have been covered through 20,174 MEDPs as on 31 March 2023 with a total grant support of ₹ 52.39 crore.

Livelihood and Enterprise Development Programmes (LEDPs)

As skill upgradation trainings alone have limited impact on livelihood creation among the SHG members, it was thought prudent to create sustainable livelihoods among SHG members and to attain optimum benefit out of skill upgradation and a new scheme titled Livelihood and Enterprise Development Programme (LEDP) was launched in December 2015. It envisages conduct of livelihood promotion programmes in clusters. There is provision for intensive training for skill building, refresher training, backward-forward linkages and handholding & escort supports. It also encompasses the complete value chain and offers end-to-end solution to the SHG members. It is to be implemented on a project basis covering 15 to 30 SHGs in a cluster of contiguous villages where from SHG members may be selected.

The skill upgradation training is provided in batches of 25-30 members and covers agri & allied activities as well as rural off-farm sector activities. LEDP will not only facilitate promotion of sustainable livelihoods but also derive full advantage from promotional assistance. NABARD will provide grant support for skill upgradation programmes, establishment of demonstration unit and need based critical infrastructure. LEDP has been mainstreamed in May 2017. Cumulatively, 2.67 lakh SHG members have been supported through 2149 LEDPs as on March 31, 2023 with a total grant support of ₹ 106.10 crore.

Scheme for promotion of Women SHGs (WSHGs) in backward & LWE districts of India

Subsequent to announcement made by Hon. Finance Minister in the Union Budget 2011-12, a scheme for promotion and financing of Women Self Help Groups (WSHGs) in association with Govt. of India is being implemented across 150 backward and Left Wing Extremism (LWE) affected districts of the country since March-April 2012. The scheme aims at saturating the districts with viable and self-sustainable WSHGs by involving anchor agencies who shall promote & facilitate credit linkage of these groups with Banks, provide continuous handholding support, enable their journey to livelihoods and also take the responsibility for loan repayments. Under the Scheme, in addition to working as an SHPI, the anchor agencies are also expected to serve as a banking / business facilitator for the nodal implementing banks.

To facilitate implementation of the Scheme, an exclusive fund viz. ‘Women SHG Development Fund’ was set up by Dept. of Financial Services, Ministry of Finance, Govt. of India in NABARD with a stated corpus of ₹ 500 Crore Grant support @ ₹ 10,000/- per SHG to the Anchor agencies and also the cost of publicity, training & other capacity building initiatives is met out of this fund.

Collaboration with NRLM

NABARD continues close coordination with all stakeholders in SHG BLP sector. Collaboration with NRLM is being regularly maintained and enhanced for the support of SHG BLP. Coordinated efforts like conduct of National level seminars and workshops, mutual dialogues and capacity building of stakeholders on SHG BLP have now become very regular. Coordinated efforts in following areas have particularly proved immensely fruitful.

Conduct of Village Level Programmes (VLPs)

With a view to foster better understanding of mutual requirements between banks, SHGs & SHPIs and to sort out issues like credit linkage & repayment etc. at ground level, Village Level Programmes (VLPs) are being conducted with the support of banks and NRLM in 13 priority States. These VLPs sponsored by NABARD are also helping in opening of SHG accounts, their credit linkage and regular loan repayments. During 2022-23, NABARD supported 27,589 village level taking the cumulative number of trainings and to 50563.

Refinance support to Banks

To boost bank credit to SHGs, JLGs, RMGs and MFIs, NABARD refinances banks upto 95% of their lending to this sector. During 2022-23, NABARD extended refinance of ₹ 6776.56 crore to banks. As on 31 March 2022, cumulative disbursement of refinance by NABARD for SHG lending stood at ₹ 1,07,795.77 crore.

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