SHG - A Silent Revolution

Just visited an SHG centre (Yalal Taluka, Ranga Reddy District, AP) where loans are being disbursed to the SHG groups by banks (without collaterals) & the SHG centres are maintained by the Govt (space for SHG meetings provided by the govt & officers appointed to coordinate the activities).

Quite amazed (& touched) by the good work being done here. Banks give loans at about 10% to these SHGs, of which Govt later pays back 7% to the SHG members if proper repayment is done by the SHGs. More interesting numbers - 99% loans given to women, more than 34 lakh SHGs in AP alone, some thousands of crores despatched to SHGs by banks and recovery rate is 95%+ and yes, no security is provided for disbursing the loan, it works on the group guarantee concept (similar to the Grameen Bank model).

Further, govt. disburses monthly old age pension & some support to special (differently abled) people - through the leaders of these SHGs, for which the leaders get a commission - the amazing part is the use of technology here - the SHG leaders are given fingerprint-cum-card-reading machines (looks similar to a credit card swipe machine) to ensure that money reaches the right person - on verification by finger print & access card of the end user (old-age / special person), the machine, which I believe is satellite connected, shows the amount outstanding to the particular person as well as prints out a receipt!

And here we sit in our posh AC offices in cities & curse the government for all the corruption & merely empathize with the poor without knowing the ground realities / taking any active role in their betterment.

The message I learnt - "The world's changing - with or without our contribution, with or without our knowledge."