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Why Microfinance?

Shivalik Bank is providing financial assistance to weakest of the weaker sections of the society (people living below poverty line, specially those belonging to socially backward classes) through the mechanism of Self Help Groups (SHGs). Such sections of the society have always been unfortunate enough to remain excluded from banking services in our country. Their financial inclusion is the goal of our policy makers and Shivalik Bank has rose to the need of the hour. By following directives of the RBI and the government in letter and spirit, Shivalik Bank has reached far-flung areas into the villages and has helped thousands and thousands of poor families in achieving financial self-reliance.

Initially, the scheme was launched through our Gangoh Branch for SHGs formed in Nakur Block and subsequently by Ambehta Branch for SHGs formed in Nakur / Gangoh blocks with the consultancy services being taken from M / s. Janhit Foundation.  

What model has been adopted for the Microfinance Scheme?

The Block Coordinator (BC)from Janhit Foundation helps the like-minded men / women of the same village / town to form SHGs. Once a group is formed, the BC helps them to get their Saving account opened in our Bank. The amount collected within the group is deposited in a savings account and a proper record is maintained by the group's authorised signatories to keep track of the contribution made by various members. With these savings kept at the bank, the group may start inter-loaning Inter se.

After an Self Help Group runs successfully for 3 months (deposits 4 savings regularly into their bank account, it become eligible for finacial assistance up to Rs. 5.00 lakh and the same is sanctioned by us. Thus, much larger amount is now available to a group for inter-loaning among the group members.

SHG members assembled in Roopdi Gurjar Village of Saharanpur

Hand-holding, vocational training for effective use of the bank's credit is provided by the bank's partner - M/s. Janhit Foundation. They not only help people in forming groups but also train them - how to conduct their bank account, how to keep the records of all transactions, how to conduct periodical meetings, how to use the money for productive purposes. They not only suggest what vocation would suit a member but also help them in establishing it. Other members also extend their full cooperation to each of their member because it is in their own interest that no member of the group faces financial difficulties.

As long as the group keeps functioning, the advance facility from the bank continues. The ideal strength of a Self Help Group is considered approx. 15 to 18. If a group becomes bigger, it may be split into two independent groups.

Bank keeps a close watch on the functioning of the groups and also of its partner's role who provide livelihood development trainings to the group members and thus provide hand-holding.

IF you wish to know more about the scheme of credit,you may Click here to Study.