All the members contribute
100 per month and the
funds collected are utilised to provide loans. Most
women take loans, given out at two percent interest
rate, for children’s education and similar requirements.
The payback period is determined before the amounts
are disbursed. For example, a loan of
3,000 has to
be paid back in three months. If none of the members
require loans, the money is deposited in the common
bank account of the SHG. Sanyukta Mahila Samiti
(SMS) is a federation formed with select members
of SHGs. It is an overarching body and a common
platform for all SHGs.
Apart from regular activities, 16 women of SHGs
members are given
10,000 each as a revolving
fund. This is a part of the income generation activities
undertaken by the community. The amounts given as
loans are utilised for entrepreneurial ventures.