Micro Finance And Support Organisations In The Southern States Of India

Abstract

Micro finance refers to the entire range of financial and non-rmancial services, including skill upgradation and entrepreneurship development, rendered to the poor for enabling them to overcome poverty. Micro credit has a limited connotation, and refers to credit provided to the poor for self-employment, and other financial and business services. Self-Help Group (SHG) movement has become quite popular in a number of states to enable the poor to pursue income generating activities, and derive economic benefit out of mutual help, solidarity, and joint responsibility. The small homogeneous groups of poor people, with focus on women, undertake savings and credit activity as informal voluntary associations to attain a collective goal. The article reviews the recent trends in the SHG-Bank linkage programme at national and state level, with special reference to Andhra Pradesh in detail, and certain aspects of the other three southern States - Tamil Nadu, Karnataka, and Kera/a. For Andhra Pradesh, the aspects covered are: state initiatives, federation structure, services beyond credit performed by SHGs, linkages with various programmes, and A.P Mahi/a Abhivruddhi Society (APMAS). In respect of the other States, the aspects covered are: Kudumbashree projects of Kera/a, OHAN Foundation's work with base in Tamil Nadu, MYRADA and Sanghamitra Rural Financial Services with base in Karnataka, and /CIC/ Bank's linkages with SHGs in the partnership model. The roleofSHG federations and Micro Financial Institutions (MF!s) has been highlighted, bringing out issues on which attention needs to be focussed in future.