The Hindu Business Line : SHGs: Men take the lead in northern States

Mumbai April 23 Self Help Groups (SHGs) are principally located in the South, runs an anecdotal belief. Women and not men make the soul of SHGs, is another popular refrain. All that may be changing with North taking strongly to SHGs with males in the lead.

The share of the non-southern States in SHGs has increased to 50 per cent in 2006-07 against 29 per cent in 2000-01, according to a recent data by National Bank for Agriculture and Rural Development (Nabard).

Credit Linked

The regional rural banks have credit linked around 45,772 SHGs in the northern States of Haryana, Himachal Pradesh, Punjab, Jammu & Kashmir and Rajasthan while the commercial banks have linked 61,531 SHGs. According to Nabard, in 2006-07, 3.12 lakh new SHGs were formed and 2.41 lakh existing ones were given credit.

In the northern region alone, there are nearly over 1.33 lakh SHGs, which have been credit linked till March 2006. The northern region stands at the fifth position in terms of the number of SHGs formed and credit linked in the country preceded by southern (12.14 lakh), eastern (3.94 lakh), central (2.68 lakh) and western (1.66 lakh) regions respectively.

Raising Money

While most self-help groups are women-oriented, bankers stress that in the northern region male SHGs are gaining prominence. Twenty per cent of the micro credit portfolio of State Bank of India, the lead player in the field, goes to the northern region, said a senior official from the bank. Of this 20 per cent, 30-40 per cent comprise male self-help groups. "These States are basically male-dominated, so if you want to reach out to women you will have to inspire and include men in the project," the official added. SBI has credit linked around 34,403 SHGs in New Delhi, Lucknow and Chandigarh till March 2006.

"Women SHGs in the northern regions are not very active. They are just used as a pipeline to raise money (they give the money to their men). The men have farming as their principle occupation," the official added.

SKS Microfinance, a leading micro-finance institution, has also started its activities in the non-southern States and sees immense growth in SHGs based in those States.

Increasing Awareness

"Not much is known about SHGs in the non-southern States; however, now the awareness in increasing. We started our operations, around 9-10 months back, in States like Uttar Paradesh, West Bengal, Bihar, Chattisgarh, among others. We took six months to educate the women folk about the concept of SHGs," said Mr MR. Rao, Chief Operating Officer, SKS Microfinance.

The micro finance institution lends to women only. "In Rajasthan and Uttar Pradesh, women are mostly confined to their homes, but now the trend is changing. The SHGs in these regions are mostly small time traders, owners of kirana stores or into animal husbandry," he said.

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