Self Help Groups
What is the challenge?
  • Financial literacy and stability among rural women is unimaginably low largely due to illiteracy and patriarchal rural structures. This means little or no access to nearby formal financial institutes (banks or credit unions) for financial assistance to support their families. 

  • This forces them to go to moneylenders for urgent and unavoidable needs, often at ridiculous interest rates of 5 to 10% per month. Compounding loan traps discourage women from starting their businesses.

  • Women are forced to only solve immediate problems that families of 5-6 members with meager savings often face. 

  • A determined self-employed woman is merely ~$300 (Rs. 20,000) away from starting her own business but she lacks a trustworthy source to secure it.

So, what are We proposing?

Jnana Prabodhini has been actively working on nurturing leadership among rural women by running Self-Help Groups (SHGs) for more than 25 years (1995 - present).

Similar to Nobel Laureate Muhammad Yunus’ Grameen Bank initiaitive, Jnana Prabodhini offers ways to obtain financial reosurces to women in rural areas of India to take initiatives in running small, seasonal businesses such as handicraft, ornaments or investing in agriculture.

With SHGs, rural women convene together and earn trust amongst the group before actually drawing funds. Transparency and Trust are core to the success of these groups. Local group leaders, who often emerge from the same system, understand these dynamics better. This self-sustenance culture leads groups to success in the long run. 

Once a woman regularly starts attending these meetings, she can simply submit a handwritten loan application to receive a loan which she later repays in future meetings.

Jnana Prabodhini offers these non-bankable loans at 1 to 2% interest rate and also provides social support and educate women on how to better run businesses. 

As observed, this culture makes women more responsible and independent in contrast to falling into moneylender's loan traps. More women are drawn to SHGs, helping these groups grow perennially.

What is the current state of these SHGs?

Today, Jnana Prabodhini runs 236 SHGs in 56 villages in Haveli, Bhor, and Velhe divisions of Pune district of Maharashtra that have over 4,131 members in total and a monthly group capital of about $12,600 (Rs. 897,000).

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Today, Jnana Prabodhini runs 236 SHGs in 56 villages in Haveli, Bhor, and Velhe divisions of Pune district of Maharashtra that have over 4,131 members in total and a monthly group capital of about $12,600 (Rs. 897,000).
 
 
 

Daily operations SHGs - group meetings for loan disbursements and local businesses.

Women using these groups to socially express and find support.

Jnana Prabodhini has been actively working on nurturing leadership among rural women by running Self-Help Groups (SHGs) for more than 25 years (1995 - present).

Similar to Nobel Laureate Muhammad Yunus’ Grameen Bank initiaitive, Jnana Prabodhini offers ways to obtain financial reosurces to women in rural areas of India to take initiatives in running small, seasonal businesses such as handicraft, ornaments or investing in agriculture.

With SHGs, rural women convene together and earn trust amongst the group before actually drawing funds. Transparency and Trust are core to the success of these groups. Local group leaders, who often emerge from the same system, understand these dynamics better. This self-sustenance culture leads groups to success in the long run. 

Jnana Prabodhini offers these non-bankable loans at 1 to 2% interest rate and also provides social support and educate women on how to better run businesses. 

As observed, this culture makes women more responsible and independent in contrast to falling into moneylender's loan traps. More women are drawn to SHGs, helping these groups grow perennially.

"

As more leaders emerge,

Women believe in self-transformation

New Self Help Groups are formed.

How does a Self Help Group work?
  1. A group of minimum twelve rural women come together to form a SHG.

  2. A member brings her own savings typically $2 (Rs.100 - 200) to put in the common fund. 

  3. Every month, one member gets a loan.

  4. The group leader educates women about accounting and monitors the process of disbursing loan amounts and collecting periodic repayments. 

  5. Women also learn how to start and run businesses. More importantly, they find social support from their fellows.

  6. SHG oragnizes annual accounting meetings where the whole village witnesses these operations.

  7. As the businesses grow, every member’s saving power increases and the overall SHG account strengthens. Women secure their basic life needs and start thinking beyond.

  8. As this SHG accumulates more money,  it can accommodate more women.

 
What’s the estimated impact of my donation?

$5000 or more

You can fully support 5 SHGs. That’s a huge impact on about 15 women and their families!
$3000 or more

You can support 3 SHGs, which means with your funds close to 9 women will get loans.
$1000 or more

You can support 3 businesses in an SHG, which we aim as our minimum target for every SHG this year.

$500 or more

You can support 1-2 businesses, and cover operational costs such as travel, account book-keeping, and training etc.$250 or more, you can support 1 business.

$30/$50/$100 or more

You can add to our corpus fund and cover for other running costs such as logistics, professional development, and salaries etc.

Contact

info@jnanaprabodhinifoundation.org

39276 Beringer Dr,

Murrieta,

CA 92563

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Non profit 501(c)(3) organization established to address social issues in India.

EIN: 84-2674823

ⓒ 2020 JPF

Affiliated to Jnana Prabodhini, India