Bankers Institute of Rural Development (BIRD), an establishment of NABARD, conducted a three-day residential training programme on ‘Sustainable group mode of financing’ from 03-05 January 2023 at BIRD, Mangaluru.
Self Help Groups (SHGs) & Joint Liability Groups have emerged as effective institutions for supplementary credit delivery in rural areas. The experience of SHG/JLG Bank Linkage Programme shows that SHGs/JLGs offer good business potential for the participating banks in enlarging client base, mobilizing small deposits and dispensing micro-credit and loans to micro enterprises. The problems of high transaction cost and poor recovery largely associated with target oriented lending programmes are effectively addressed in group mode of financing model. Further, promotion and linkage of SHGs/JLGs is an effective tool to achieve financial inclusion and inclusive growth.
The three-day programme focused on all relevant areas pertaining to sustainable group mode of financing to give an insight to the participants on rural credit scenario, SHGs/JLGs as alternative credit delivery mechanism, role of SHGs in financial inclusion as well as other models of activity based groups, Producers Collectives, livelihood promotion, micro insurance scheme and micro pension scheme.
Mr. Parthiban from AREDS and Mr. Gunalan, the CEO of Sengathir Uzhavan Agri Producer Company, which is promoted by AREDS, participated in this training programme.