Gujarat NGOs seek long-term partnership with Nabard

In the wake of a growing self-help group (SHG) movement in Gujarat, several NGOs and microfinance institutions have sought a long-term partnership with the National Bank for Agriculture and Rural Development (Nabard) to consolidate on the movement.

At a state-level meet of microfinance institutions, SHG federations and NGOs organised by Nabard, various agencies like Sewa, Viksat, Kutch Mahila Vikas Sanghathan, and Aga Khan Rural Support Programme, participated.

Following a study of various models such as Myrada Model in Karnataka, Andhra Pradesh's Indira Kranti Patham, Tamil Nadu's Women's Development Corporation and the Orissa government's model, the participants sought a similar model by NGOs in Gujarat.

Highlighting the growth of SHGs, BS Shekhawat, chief general manager, Nabard, said while NGOs normally exit after accomplishing their task, the SHGs formed by such NGOs, who need continuous support, tend to form their own federations and take over responsibilities of support hitherto provided by NGOs.

"Many of these federations have graduated to become microfinance institutions too. Therefore, the emphasis should be on providing support services to make SHG ventures more cost-effective and profitable to members. Moreover, direct linkage between SHG and banks should be encouraged," he said.

The participants noted that while some of the federations were providing all services including financial support to their member SHGs, others were providing basically non-financial services.