The National Bank continued to provide 100 per cent refinance assistance to banks for financing SHGs. During 2008-09, Rs.122535.1 million was disbursed as loan to SHGs by various banking institutions. Banks had availed of refinance to the tune Rs. 26200.3 million from NABARD. As on 31 March 2009, the bank loans outstanding to the SHGs aggregated Rs. 226798.50 million , while cumulative refinance availed of by the banks aggregated Rs. 96880.90 million.

Financial Support to Partner Agencies
Promotional Grant Assistance to NGOs to function as SHPIs

NGOs already working in the social sector are encouraged to take up SHG promotion as an "add-on" activity. This not only helped in complementing the core areas of activities of the participating NGOs but also reduced overheads costs in formation and nurturing of groups. NABARD provides a grant assistance of Rs 4500/- to NGOs for promotion and linking of each SHG. This amount broadly covers training of members of SHG, stationery for the group, incentive/part salary of NGO staff etc.

Supporting RRBs as SHPIs

In order to widen the spectrum of SHPIs, NABARD assisted five branches of Cauvery Grameena Bank (CGB), an RRB in Mysore, in the year 1994, to test the feasibility of RRBs themselves taking on the role of SHPIs. Under this programme, the bank staff at the identified branches were provided with specific training in promotion, nurturing and financing of SHGs. This experiment succeeded in grooming RRB staff to form SHGs. Having successfully oriented a few RRBs to take up the role of SHPIs, it was felt necessary to find ways of reducing the per SHG cost involved in promotion and nurturing of SHGs by bank staff, if the programme were to be broad based across the country. Therefore, an alternative module was developed by NABARD, involving lower cost, to support more RRBs. This module envisages support from NABARD for training of staff of ten identified branches for each RRB, with provision to partly meet the costs of awareness building, training and stationery for the SHGs, which are promoted by them. NABARD provides grant assistance @ Rs2500/- per SHG to RRBs for formation and linkage.

DCCBs as SHPIs

In India cooperative institutions like District Cooperative Central Banks (DCCBs) and Primary Agricultural Cooperative Credit Societies (PACS) have a long history being in existence for the past several decades. They have the potential to emerge as major partners considering their strong presence in rural areas for integrating SHG bank linkage programme in their existing business activity. NABARD has therefore formulated a scheme for assisting DCCBs to form, nurture and link self-help groups. NABARD provides grant assistance @ Rs2500/- per SHG to DCCBs for formation and linkage.

Farmers' Clubs as SHPI .

NABARD has been encouraging informal forums called Farmers' Clubs (FCs) to spread the message of 'Development through Credit' and inculcate the repayment ethics among borrowers. These clubs also have significant potential to work as SHPIs. Accordingly, a module was developed to support them to function as SHPIs. The module envisages financial support to nodal bank branches and FCs for meeting expenditure on (i) awareness building on SHGs among volunteers and nodal branch staff, (ii) training of identified FC volunteers to work as facilitators (iii) required stationery for SHGs promoted, (iv) reimbursement of expenditure incurred by the facilitators in promotion of SHGs, and (v) incentives to the Farmers' clubs for acting as SHPI. The module is now helping available independent facilitators like schoolteachers and primary health workers to form and nurture SHGs.

Individual Rural volunteers as SHPIs

In regions of the country, where NGOs are not adequately represented, a special initiative has been launched by NABARD in the year 2003 to rope in socially committed individual volunteers like retired and active school teachers, post masters, village elders, anganwadi workers, members of existing credit linked SHGs etc for formation of self help groups and linking them with banks. This scheme is being implemented in 20 states of the country through regional rural banks/ district central cooperative banks. Volunteers are provided with a grant assistance of Rs 1200/- per SHG for formation and linking them.

Additional “Promotional Grant assistance for hand holding” at a maximum rate of Rs 500/- per SHG to NGOs, RRBs, DCCBs and UCBs and Rs 300/- per SHG to Farmers Club can be sanctioned seperately.

Agency	Sanctions during the Year			Cumulative Sanctions			Cumulative Progress
	No	Amount	No of SHGs	No	Amount	No of SHGs	No	Amount	No of SHGs
NGOs	311	1564.29	46504	2318	6405.71	291780	2773.93	214927	134861
RRBs	2	20.70	800	113	389.30	44590	181.16	53595	35942
Co-operative Banks	12	136.92	9465	95	563.13	53875	207.15	40327	22835
IRVs	6	46.62	2590	66	529.76	31233	52.32	8607	4566
Farmers’ Clubs	---	---	---	---	---	---	61.06	14544	7836
Total	331	1768.53	59359	2592	7887.90	421478	3275.62	332000	206040