Financing women - some suggestions for bankers

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Engendering and feminising the loan portfolio of commercial banks - some suggestions


<ul><li> 1. Enabling access to financialservices for women: NABARDExperienceDr. B.S.SuranNABARD</li></ul> <p> 2. The unheard &amp; less talked segment some facts 48 % of the population (933/1000 ratio) Literacy rate 65 % only ( 82 % for men) Life expectancy : 64 years Don't own property or have land rights Paid 60 % of the what men get ? Forms 80 % of the labour force in agri..But: we moved from class to mass banking ? 3. Women Savings :Should we not quenchthe thirst ??Clandestine Saving PracticesWomen in HH budget68%56%19%2%Self-help-Group(microfinance)Ros casJewelsCas hRef: Group Lending in South-India A Gender Perspective : by Isabelle Gurin - Institut deRercherche pour le Dveloppement, French Institute of Pondicherry 4. Where do women borrow ?Borrowing Practices (% of women involved)22%13%30%65%65%60%82%93%Relatives, friends and neigborsPawnbrokersSHGsShopkeepersDoor-to-door MoneylendersEmployers"Wealthy People"Banks and financial compagniesRef: Group Lending in South-India A Gender Perspective : by Isabelle Gurin - Institut deRercherche pour le Dveloppement, French Institute of Pondicherry 5. Women s responsibilitiesin household financial budget management0% 20% 40% 60% 80% 100%IncomeSavingBorrowingRepaymentMinor Role (0-33%)Moderate Role (34-66%)Decisive role (&gt;66%)Ref: Group Lending in South-India A Gender Perspective : by Isabelle Gurin - Institut deRercherche pour le Dveloppement, French Institute of Pondicherry 6. But : Slogan: Help an women and help a family ? They are better savers ? They have better repayment track record They are more trustworthy But : Market segment ignored lending is based on security / not trust Lip service ? just ensure regulatory compliance ? 7. Some interventions which NABARDtried Through Banks Women Development cell Direct : Promotion of SHGs Tribal Development fund and programme Skill development programmes MEDP REDP Farmers clubs Marketing assistance 8. Microfinance Provision of thrift, credit and other financial servicesand products of very small amounts to the poor in rural,semi-urban and/or urban areas for enabling them toraise their income levels and improve living standards- NABARDs Task Force on Microfinance, 1999 9. Design features - SHG Enables exclusion of rich Self-selection Focus on women Saving first and credit later Intra group appraisalsystems and prioritization: Credit rationing Shorter repayment terms Market rates of interest Progressive lending Multi-eyed operation 10. SHGs What was the impact ?Self-HelpInitiativesPeace(Interfaith,inter-caste toleranceand conflict resolution)Education(School for children,adult literacy.Peer education )Income Generation(Encouragement and advice)Leveraging Govt contracts-hatts/quarrying/fish pond/milestone/ health relatedSocial Evil Eradication(Alcohol abuse,spousal abuse,excessive dowry,Undesirable social practicesgender space,)Civil Society(Women membersrun for elected office)microFinance(Savings and credit)Banker friendlymarket/recovery/imageInfrastructure building(physical, social &amp; community assetsEmergency Prevention(recurring natural calamities)Watershed Management(Water users groups,infrastructure maintenance,share practices) 11. Some issues linger !! Persistent declines in bank offices. Reductions in bank staff, particularly those posted in rural /semi-urban br Erosion in the number of loan accounts for agriculture and SS industries Nearly 80% of small borrowal accounts have been in rural and s-urban areas. SHG: borrowal accounts have a regional dimensionless in underdevelopedregions of north-east, east and central Focus is on micro loans only by banks 12. What the bank can do ? Take the commitment of top management Have a long term vision /Draw a mission statement Put a strategic plan to translate the mission into action Build and sensitize staff Review in all meetings with seriousness Incentivise the staff and BM who do good work Award functions /certificate of merit / recognition Don't forget the basic tenants of lending 1) information gathering , 2)monitoring , 3) incentive 4) enforcement Missed the first step and youmissed the rest ?? Remember collateral free lending is not security free lending Increase the target for direct loans / SHGs , rating using intermediaries / franchisees ? Federations are livelihood support organisation and BF and BC NGO as BF and BC Partnership programmes 13. Thank you for your patienceContact us : suranbs@gmail.commcid@nabard.orgVisit us at </p>