Formation and Management of Shg and Micro Credit Organizations
UNIT III
SHGs SAVINGS AND CREDIT MANAGEMENT
Savings & Credit Concept:
Savings and credit are inter related. It is proposed in a society for the significant development of the society. This both activities are much important to a SHG to bring economical changes in the lives of the people.
Activities:
* Income generation * Gainful employment * Inculcation of saving habits * Enhancement of social changes * Ownership
Savings:
* A compulsory saving must be fixed for the development of the group * Voluntary saving must be encouraged * The saving contribution should be in the form of cash * Nobody should allow withdrawing his/her money before the set date * Receipt should be issued at every transaction * All collection should be made during the meeting itself * Saving should be deposited in the bank by the accountant * Individual pass books should be issued to each member * the pass books should be entered at every meeting after the collection is made
Credit:
With the mobilization of saving collected from the members for a period of month as fixed by the group, the saving and credit committee of the group should fulfil the needs of the members by disbursing small loans on an experimental basis to observe proper usage of the loan and whether members are prompt in loan repayment
Credit function: * SHG normally offer the small short-term loans * Internal lending must be commenced * Group must have system of priorities and purpose based loans * Overall credit needs evaluation * Loans are to be disbursed in the presence of all members * Group must have the proper monitor till the end of the credit
Repayment: * Repayment dates should be strictly adhered * In order to increase the volume of the group certain fund must be collected from the members * Based on the nature of the loans the repayment date should be set * Fines should be charged to the
SHGs SAVINGS AND CREDIT MANAGEMENT
Savings & Credit Concept:
Savings and credit are inter related. It is proposed in a society for the significant development of the society. This both activities are much important to a SHG to bring economical changes in the lives of the people.
Activities:
* Income generation * Gainful employment * Inculcation of saving habits * Enhancement of social changes * Ownership
Savings:
* A compulsory saving must be fixed for the development of the group * Voluntary saving must be encouraged * The saving contribution should be in the form of cash * Nobody should allow withdrawing his/her money before the set date * Receipt should be issued at every transaction * All collection should be made during the meeting itself * Saving should be deposited in the bank by the accountant * Individual pass books should be issued to each member * the pass books should be entered at every meeting after the collection is made
Credit:
With the mobilization of saving collected from the members for a period of month as fixed by the group, the saving and credit committee of the group should fulfil the needs of the members by disbursing small loans on an experimental basis to observe proper usage of the loan and whether members are prompt in loan repayment
Credit function: * SHG normally offer the small short-term loans * Internal lending must be commenced * Group must have system of priorities and purpose based loans * Overall credit needs evaluation * Loans are to be disbursed in the presence of all members * Group must have the proper monitor till the end of the credit
Repayment: * Repayment dates should be strictly adhered * In order to increase the volume of the group certain fund must be collected from the members * Based on the nature of the loans the repayment date should be set * Fines should be charged to the