Microfinance is being increasingly recognized as a sustainable solution for developmental interventions. In fact, the success of some innovative experiments to alleviate poverty in countries has proved that small credit given to the poor can effectively increase their income-level through entrepreneurship and skill support development. In addition to this, it has also been noted that catalyst agencies such as NGOs also benefit from this new practices of sustainable development. NGOs are not … [Read more...]

Gender should an integrated component of all the activities of the strategy. Gender equality should be ensured in all the stages of cooperative formation and strengthening. In order to bring women forward on par with men, special attention should be given to women. Women should be given priority in the SHG formation process. In order to encourage and enhance women’s participation in management and decision making, the Bylaws of the cooperatives ensure at least 50% women members in the managing … [Read more...]

The strategy can adopt the following ways to promote the cooperatives and ensure their sustainability. Building effective management information systems (MIS) Reaching large number of clients with vision for growth; Promoting savings services and diversify savings products; Offering services that fit the clients' needs and diversify loan products; Simplify procedures to reduce operational costs; Motivating clients to repay loans and focuses on high repayment; Attaining financial … [Read more...]

Cooperatives play a crucial role in promoting values of self-reliance, good governance, equity and transparency. The concept of cooperatives is based upon the ethical values of openness, honesty and social responsibility. They are organized by a group of persons voluntarily coming together to meet their common social, economic and cultural needs. They are owned and controlled by members in a democratic manner. Active participation of all the members is ensured without any kind of social, … [Read more...]

The strategy can involve development of microfinance through promotional activities at two-levels: SHG and cooperative level. Self-Help Groups cab be promoted at the village/ hamlet level consisting of, say, 20 members. The SHGs meet at regular intervals and collect savings from the members and carry out inter-lending among themselves. The Groups will be strengthened through continuous training and capacity building activities. The village-level SHGs function as collection centres and link their … [Read more...]

Entry-Point Activities are necessary part to orient the community members towards thrift and credit activities. Direct dialogue about the intervention can create a negative attitude among them and hence, some innovative method should be applied to bring about a positive air in the project area. Entry-Point Activities help us manage that. However, these activities cannot be implemented blindly. There has to be some need assessment to be carried out initially to identify the community needs. Need … [Read more...]

The project will compile an inventory of the existing SHGs (self-help groups) in the project area in the beginning. This information will help the project to assess the existing SHGs and their capacities. The existing SHGs can be assessed applying the following criteria: Criteria: Age of the group ( at least one year old) Number of members (between 10 and 20) Cumulative savings Internal lending and the amount Loan repayment history Whether the group has a bank account Amount … [Read more...]

The goal of a microfinance and cooperative strategy can be to enhance easily accessible, cost effective and sustainable financial services to the people living in the project area that would enable increased investment in income generating activities resulting in an increase of their income levels. The strategy would specifically: Enhance accessibility of financial services Enhance women's participation and decision in policy making-processes at all levels Enhance the capacities of … [Read more...]