Social mobilisation and empowerment of women

1. AP Model for comprehensive poverty eradication Social mobilisation and empowerment of women

2. Vision:every poor family out of poverty • improved status in society • comprehensive food security – freedom from hunger • income - minimum of Rs.5000/- per month, from 3 - 4 stable livelihoods (agriculture, allied,etc) • house-hold expenditure controlled • Comprehensive risk management • good shelter • good health and quality education

3. Holistic model – covers all dimensions – economic and social • Inclusion - 90% of rural poor in S.H.Gs • Special focus on ultra poor and vulnerable • Gender balance – intra family equity • Micro finance • Food Security • Health & Nutrition • Agri - Marketing • Non-Pesticidal Management of Agriculture • Dairy • Jobs • Insurance

4. A.P Federation Model Z S 200,000 400,000 MMS 4000 6000 - V.O 150 - 200 SHGs SHGs SHGs SHGs SHGs

5. Outreach • S.H.Gs in all villages of AP • More than 90% of rural poor organised • 87.5 lakhs rural women organised into 7.0 lakh S.H.Gs (upto March 2007) • (35% of all S.H.Gs in India country are in A.P) • 33,747 VOs, 1083 MSs and 22 Z.Ss formed • Universal coverage of all poor

6. Total financial inclusion recent intervention for addressing the ‘high cost’ debt of the poor

7. Objectives • To address all the needs of the poor-deepen the credit inflow • To transform money lender – dependent rural poor into bankable community • To eliminate high-cost interest regime form the lives of poor • To arrest the resource drain from the poor • To build up diversified & multiple livelihoods of the poor

8. 9000 6500 3063 2001 1017 754 454 197 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 SHG-Bank Linkage in AP

9. Expenditure Portfolio of the Poor • Food • Health problems – minor/major • Education • Interest outflow • Working capital - farm/non-farm • Assets – land, cattle, non-farm • Housing – construction, repairs • Life cycle ceremonies

10. Indebtedness of the poor • Each asset-less rural poor family at present needs Rs.40,000 credit • The bank finance accessed by the poor family, at present is 10,000 – gap: 30,000 • Gap at State level: Rs.25,000 crores • Debt from informal sources: 15000 crs • Interest payments to informal sources : Rs. 5000 crores per annum

11. The impact of ‘high cost’ debt on a poor family • Per capita annual debt servicing burden: Rs.6000 • 10 – 40% of income for servicing ‘high cost’ debt • This burden is ‘neutralizing’ all poverty eradication efforts aimed at income generation • Priority: to address ‘high’ cost debt

12. Cost of servicing loans from money lenders/MFIs - per S.H.G Bank linkage per district 2006-07: 150 crores Annual interest paid by all SHGs : 184 crores

13. T.F.I Process • Effective utilisation of the S.H.G network • Facilitate each SHG to identify all the financial needs of each member’s family • Development of ‘Micro-Credit Plan’ by the group itself • Participation of Bank Manager in the process of development of MCP by the group

14. T.F.I Process • Role of S.E.R.P • Pro active role of SLBC • Involvement of all banks • Adoption of Micro credit planning process as the basis for bank linkage, and, not multiples of savings • CRP strategy • Continuous nurturing of S.H.Gs by the S.H.G federations and D.R.D.As • ‘Pavala vaddi’ • Continuous monitoring of recoveries

15. Micro Credit Plan • Micro Credit Plan components: - Debt swapping- the loans taken by the poor from money lenders at high rate of interest - financial requirement for assets acquisition and working capital - financial requirement for social needs – food security, health, education etc.,

17. T.F.I Achievement • Implemented in 304 villages with 183 crores in 2006-07 • In 07-08, it is planned in 5000 villages with Rs.4,000 crores to cover 10,00,000 families • Quantum of finance ranges from 80 lakhs to 1crore 50 lakhs to each village • Per group finance: quantum jump from 83,600 to 450,000

18. Bank – Linkage amount taken under T.F.Iin Maharajpeta (V) Consisting of Maharajpet, Gopuralam & Dontanapalli Hamplets of Rangareddy Dist No. of SHG’s : 25 No. of Members : 264

19. Loan Amount Taken Under TFI in Gopularam H/o Maharajpet (V) of Rangareddy District No. of SHG’s : 11 No. of Members : 96 Social Category : SC

20. Relief in interest burden per annumin Gopularam H/o Maharajpet(V) of Rangareddy District No. of SHG’s : 11 No. of Members : 96 Social Category : SC

21. Building up of Assets of the poor in T.F.I. Village : Gopularam No. of SHG’s : 11 No. of Members : 96 Social Category : SC

22. Increase in Annual Income of the poorin Gopularam H/o Maharajpet (V) of Rangareddy District No. of SHG’s : 11 No. of Members : 96 Social Category : SC

23. Before TFI After TFI EFFECTIVE IMPACT OF TOTAL FINANCIAL INCLUSION ON THE POOR IN GOPULARAM h/o MAHARAJ PET (V)

28. Impact on the bank branch • Participation of bank manager in the process • Increase in the access by the poor to the bank • 100% recovery in new-intervention villages • Increase in the profitability of the bank- 100% increase in rural branches

29. Impact on the poor • Huge mental relief in switching over from money lender to the bank • Reduction in interest payments in each family • Increase in asset base of the family • Unleashing of entrepreneurial spirit of the poor • Increase in health conditions of the poor-as it results in improvement in food in-take by the poor • Improvement in children’s education and higher education in poor families

30. Sustainability of the Model • Enhanced savings by individuals, in S.H.Gs and in V.Os • Social Security: - RD for the children of members - Life, health and asset insurance • Reduction in expenditures: - Food Security - NPM - Micro Irrigation • Intervention in value chains of ‘key livelihoods’ of the poor

31. Thank You