Tribal areas are one of the most deprived areas for living. The mere survival in these areas itself is an uphill task. The life in these areas is beyond imagination for city dwellers, who live everyday only through money.
The way of living is more or less akin to the primitive days in most of the areas. The terrain of the area the obsolete and primitive technology coupled with their way of living make the gathering food to satisfy the hunger, a big problem.
In such a deprived kind of living under nourishment and malnutrition is not uncommon.
Though living is such perjury; tribes today are looking towards a new horizon. The developmental initiatives, undertaken by Government and other Non-Governmental Organization are slowly changing the life style in tribal Areas.
The ‘barter system’ is being replaced by ‘monetary’ system at an alarming speed.
Now the tribal households started counting their income and expenses in rupee terms. The ‘Monetary system’ has brought the tribal to a complex and unknown world. He is trying to cope up with the new world with great difficulty.
‘Credit’ is very important in houses which live beyond their incomes or in houses which are unable to generate enough income to meet their genuine needs. Tribal households normally come into the second category of the houses.
Tribal households spend a majority of their income earned on celebrating countless ceremonies and rituals; they practice and believe. Part of the money goes to purchase the liquor, which the men folk are normally accustomed to.
In such a scenario any minor change in the earning or emergency in the family forces the household to run for credit, normally for consumption purposes.
Getting credit for consumption purpose from Government Institutions is totally ruled out. The Government institutions like I.T.D.A., Banks normally lend for developmental purposes only. The N.G.Os also normally lend for developmental purposes only.
However, the need for the credit being very urgent; the tribal normally, is driven to the ubiquitous money lender.
Thus the unaccredited worthy person in the eyes of the formal credit institutions is driven to the informal, omnipotent credit institution. The ‘unaccredited worthy’ person is instantaneously becomes ‘credit worthy’ for the money lender and the loan is generally given without much complex procedure.
Though the processing of the loan is simple, the conditional ties attached to the loan are complex and mind boggling.
1. The rate of interest may range from 36% to 72% per annum.
2. The land of the debtor may be required as a security.
3. The repayment period may be very short etc.
Yet the tribal accepts all these harsh conditions and takes the loans, only for the simple reason that he has no other way to go.
However this institution has to be strengthened for the purposes taking on additional burden of maintaining big amounts and effective recollection of loans. Presently Mahila Sanghams committees deal in small amounts and lend to their members alone.
DWCRA GROUPS
These groups are the creation of D.R.D.A. These are intended to create additional income for the rural poor. DWCRA groups do not exist in every tribal village. The group is neither cohesive nor deals in credit.
TRADITIONAL TRIBAL INSTITUTIONS
There are certain tribal institutions, which are being contained for years. The villages Patel, Poojari, are some of them. The Rai centre exists for adjudication for petty cases. These institutions are not suitable for meeting credit needs.
These institutions are mostly headed by individuals and they have little experience in credit management.
GRAM PANCHAYAT
This is an institution of local self-government. The head Gram Panchayat is elected. This institution is practically oriented and it does not exist in every tribal habitation.
It has neither experience in credit management nor suitable for the credit management.
Thus among the existing institutions in the tribal villages only Mahila committee is suitable for taking up the burden of credit management. But it has to be strengthened to take up additional bigger responsibilities.
The Women in the tribal households, besides coping up with acute shortage of basic amenities like housing, drinking water, sanitation and electricity have to make a substantial contribution to the family income. Illiteracy coupled with poverty makes them an easy target for exploitation.
In this face of all these odds these women have a major part in the responsibility of maintenance and development of the family. Thus the women are more committed towards the development of the family. They do not waste any money for useless needs like gambling, liquor etc., as men folk do.
So any type of credit management institution has to necessarily central around women.
ORGANISATION
GROUP LEVEL: CREDIT GROUP.
CREDIT GROUP is a self managed women group. They are initiated to generate financial resources through their own savings and revolve the same to meet the credit needs of their members. A group consists of 10 to 20 members who live in the same neighborhood in a particular habitation. Each committee has a unique way of managing their own finances, through the members are self selected in each group.
Each group establishes its own norms and elect leaders to take up the responsibility of running the group. The primary source of funds for the group is from the savings of its own members and interest earned on loans. The members determine the rate of interest on the loans jointly. Interest is also paid on savings collected from the members. Regular transaction of collecting savings issuing and repayment of loans taken place during regular meetings where all members are present. Members collectively take all decisions.
Each group creates a common fund from the interest earned on the loans. They meet their cost of operations viz., books, administrative expenses etc., from the common fund.
The repayment of loans is to be ensured by an individual taking responsibility and Peer Pressure. It may be delayed for a few months, but not left unpaid
In addition to financial transactions, these groups play a vital role in building a close relationship among women living in the tribal villages. It helps them to support each other and address many of their every day problems.
The structure and functions of the credit groups on the above lines should be formed in tribal villages. Many villages already have such committees. But for selections a villages for the higher task can be done in the following way.
VILLAGE SELECTION
Community unity and the functioning of the existing Mahila committee should be assured first. The details like money lending process, number of families approaching moneylenders, purposes of loans, rate of interest are to be collected. The data thus collected should be analyzed and villages may be prioritized under the following conditions.
1. Villages which are interior inaccessible, under developed.
2. Mahila committee functioning actively and meeting regularly for savings and loans. Women leadership is existing.
3. Villages should be preferably smaller.
4. Exploitation by money lender.
5. No moneylender exists in the villages.
If four out of the six conditions are satisfied the village may be prioritized.
MANAGEMENT:
At Credit Group level:
Entire management is left the group alone. No outside interference allowed except for guidance, that too only when the group asks for it.
GROUP LEADER
One Woman represents in the Cluster Association along with any other two without voting right
EXECUTIVE COMMITTEE
It consists of 5 members. It includes 3 women and 2 men (co-opted optionally)
ALL CREDIT GROUP MEMBERS
Entire credit management is to be decided by the Members meeting alone. The Executive Committee generally supervises the activities of the group. They have neither specific authority nor any special status. In the absence of the group leader, the women members of the credit group preside over the meetings. The co-opted men members have neither special rights nor status. They are co-opted for interacting with other village institutions.
AT CLUSTER ASSOCIATION LEVEL
Cluster association exists only for the guidance for the credit groups.
CLUSTER LEADER represents the Cluster Association.
CLUSTER COMMITTEE consists of 3 members selected from the Cluster Associations.
CLUSTER ASSOCIATION
GROUP LEADER
CREDIT GROUP
OVERALL MANAGEMENT
I.T.D.A. Level Advisory body - Meets at least once in 6 months.
- P.O., ITDA Bankers, cluster leaders.
- Chair person of the Federation.
- Sub Collector.
Governing Body - (Cluster committee members)
- meets at least once in 3 months.
- All credit group leaders.
- Bank Manager concerned.
- P.O., ITDA.
- Sub Collector
General Body - all the women members of the
Credit groups- Annual meeting.
THE CREDIT MANAGEMENT:
Federation - Funds from financial institutions like HUDCO,
SIDBI, NABARD etc.
Cluster Association - Regional Banks
Local Head Offices.
Credit Group - From the local branch of a Bank.
Member saves &
Gets loan.
CONDUCTING THE DISCUSSIONS
DO’S.
• Be a facilitator. Try to elicit comments and information from the trainees through
• Intelligent questioning.
• Ask, listen and guide, rather than lecture.
• Be patient. Give the trainees time to respond.
• Use the trainees’ own words during discussions as far as possible.
• Encourage participation from all trainees.
• Wherever appropriate, support a minority point of view, this helps to stimulate discussion, analytical and critical thinking and contributes to greater comprehension of the issues from different viewpoints.
• Be flexible. Be prepared to take the suggestions of trainees and modify the training approach if needed.
DON’TS
• Avoid the temptation to act as a source of knowledge. Utilize indigenous knowledge that is not only plentiful but extremely valuable.
• Don’t talk too much. Trainee discussion should take up 75% of the meeting time.
• Don’t be in a hurry to provide a response. If no one offers a response, wait 20-3- seconds. This gives the trainees time to think and gather courage to speak.
• Never ridicule or make fun of a trainee’s response. The act of responding itself can be a big step. Avoid the temptation to rephrase member’s comments in your own words even if they are more precise.
• Try not to let a few dominate the discussions.
• Never dismiss a participant’s comments summarily, however, off point or unpopular they may be. Acknowledge the contribution of the very least and try to move the discussion back on track.
• Don’t follow the sessions blindly. Be aware of whether your trainees are grasping your points or not. You may have to revise earlier points. This training manual will benefit from user’s input on what worked and what didn’t. So keep notes of changes and innovations.
SOME DO’S AND DON’TS FOR THE ORGANISERS:
PREPARATION: DO’S
• Be clear about the objectives of the program and the process of how to conduct the sessions.
• Help to ensure the representation of all groups by soliciting volunteers to attend from each sub-group.
• Select a place for the training session that will accommodate all members.
• Have all the materials, audio visual aids, case studies, etc., ready prior to starting the session.
DON’TS
• Don’t think you can just go and wing it. Proper preparation is essential to a successful session.
• Don’t simply assume you will get a cross-section of community members when a meeting is called.
• Don’t choose a place that is comfortable territory for some members, but not for others.
• Don’t squander women’s time by being ill prepared.
SETTING THE GROUND: DO’S
• Introduce yourself and discuss the proposed program ahead of time with the target group.
• Have the group members sit in a circle to facilitate face to face interaction and have the members introduce themselves.
• Inform the trainees as to how you want to go about the session and summarize the happenings at the end.
DON’TS
• Don’t launch into any training session without properly introducing the agenda.
• Avoid hierarchical seating arrangements.
• Pace the session so that you have adequate time to wrap up the session by summarizing the session’s main points.
The group leaders attend the cluster meetings. They can present the progress of their groups. The specific issues of Group and cluster may be discussed here. Each cluster Association may be quipped with an office where meetings can be held and day to day affairs can be managed there. The rent for this office may be divided equally among the groups.
The cluster association among the other may initiate the following things.
- Promotion of new groups
- Conflict resolution within and between the groups.
- Address the common issues in the cluster area.
- Promote unity and solidarity among the groups.
Once the groups are formed and cluster Associations formed, depending upon their performance, one confederation of these groups can also be formed for addressing larger issues like
1) Interacting with financial institutions like HUDCO, NABARD etc., and to mobilize funds from them to meet larger credit needs of the groups and their members.
2) Promoting new groups and cluster associations and strengthening old once,
3) Involving the members to manage the financial and promotional functions independently and without external subsidies, and
4) Promoting solidarity among the women of different groups and achieves strength through collective action.
Banks as far as possible.
1. Should lend the money to the credit groups at the village credit group level.
2. Should provide loans only to the group but not to the individuals.
3. Groups in turn lend to the individuals.
4. Group pays the loan collectively. The individuals repay to the credit group only.
INTERACTIONS AMONG THE CREDIT GROUPS FOR MUTUAL SUPPORT:
After a few groups are formed in a particular area, the representatives of each group should meet at least once in a month. This would be a meeting ground for exchanging ideas, and to develop rapport between members of different groups. This will act as an opportunity for many to clear their initial doubts about the groups. Many members understand more about the group after attending these meetings. Many issues related to savings, lending and management of groups can also be discussed here.
CLUSTER ASSOCIATION FOR COLLECTIVE STRENGTH
The groups in one particular area may be formed into a cluster association. Each group becomes a member of the cluster association and represented by 2 leaders. Normally 10 to 15 groups can be formed into an association of 5 leaders; amongst the group leaders may be selected to manage the affairs of the Association. They may be called as cluster leaders.
LOANING PATTERN:
1. Loaning process should be made available throughout the year.
2. Up to Rs.2, 500/- loans to be sanctioned by village committee.
3. Loan applications to be processed by village committees alone.
4. Request for loan should be made to the group at least one week in advance, except in emergencies.
5. Purpose of the loan to be mentioned.
6. Rate of interest to vary according to the purpose.
7. If possible sureties amongst members may be insisted.
RECOVERY OF LOANS:
1. Credit growth as a whole is responsible for the loans taken by the group from the banks.
2. Recovery of loan of the loan may be accepted either in cash or kind.
3. The repayment schedule should be enforced strictly.
FINANCE FOR THE CREDIT GROUPS:
Substantial portion of the funds for the credit groups should come from their savings and credit management. In times of need only the banks should lend money to the credit groups.
FORMATION OF THE COMMITTEE:
Potential leader of the Awwal Committees is to be identified and 5 such leaders may be nominated as executive committee members. Men also are co-opted only for executive committees. The men may be nominated by the members of the credit groups (Mahila Committees) alone.
WOMEN MEMBERS OF THE CREDIT GROUP EXECUTIVE BODY
- Active members in the Mahila Committee.
- Regular in savings and 100% repayment.
- Bold and articulate women.
MEN:
- Socially respected persons.
- Progressive farmers.
- Not a defaulter of loans.
- Known for fairness and articulate.
The members of above qualities may be selected preferably.
MEMBERS OF THE CREDIT GROUP:
1. Member of Mahila Committee earlier.
2. Not a known defaulter.
3. Regular in attending the meetings, regular in savings.
4. Previous record of loan repayment.
The above conditions may be verified before accepting one as a member.
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