f i nanc i a l i nc lu s i on i n i nd i a
35
NABFINS works on a wafer-thin margin and lends to
SHGs at 15 per cent per annum for loan up to Rs. 2 lakh
and 16.5 per cent for more than Rs. 5 lakh. NABFINS
allocates a part of profits for training SHGs and B&DCs.
Loan provided by NABFINS is dependent on the
requirement and repayment capacity of the member
and not linked to the savings. NABFINS is currently
working in Karnataka, Tamil Nadu, Andhra Pradesh and
Maharashtra and plans to reach out to Madhya Pradesh
during 2014–15.
NABFINS works in two verticals—the first vertical of
NABFINS is to lend directly at the doorstep to SHGs/
JLGs, through BCs. During the year 2013–2014,
NABFINS extended Rs. 6,315 million to 17,027 SHGs
with the support of 164 B&DCs
20
who play a critical
role not only in credit recovery but also in formation of
groups and promotion of livelihoods. The second vertical
of NABFINS is to promote Second Level Institutions
(SLIs) like federations, producer collectives, etc., which
support the aggregation and marketing of agricultural
products. During the year 2013–2014, NABFINS lent
Rs. 113.7 million to SLIs. NABFINS has operations
in 66 districts in four states.
21
In addition to financial
support, NABFINS supports the SLIs in aggregation,
value addition, storage and marketing of commodities.
NABFINS has partnered with Rabo Bank and CARE
which cover the risks involved in this process and
draws on the support of NCDEX for warehousing and
marketing.
The company’s portfolio outstanding as on March
2014 was Rs. 6.2 billion (unaudited) thereby registering
a growth of 64 per cent as compared to March 2013.
NABFINS has registered a net profit of Rs. 180 million
(unaudited) during 2013–14.
The repayment rate has been over 99 per cent. During
2013–14, NABFINS witnessed increased competition
from financial institutions especially from the private
sector banks operating with the same or a similar model.
However, it has been able to retain its B&DCs and
expand its operations.
2.5.2 Stree Nidhi
Stree Nidhi Credit Co-operative Federation Limited
(Stree Nidhi) is an Apex Credit Co-operative Federation
registered under the Andhra Pradesh State Co-operatives
Societies Act, 1964 and is promoted by the Mandal
Samakhyas (MSs) and Town Level Federations (TLFs)
of SHGs in association with the Government of Andhra
Pradesh, under the aegis of Society for Elimination of
Rural Poverty (SERP), Ministry of Rural Development
and Mission for Elimination of Poverty in Municipal
Areas (MEPMA). The SHGs are formed exclusively by
women.
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In the undivided state of Andhra Pradesh, as on 31
March 2014, there were 10,65,000 SHGs promoted by
Society for the Elimination of Rural Poverty (SERP) in
rural areas and 2,98,000 SHGs promoted by Mission for
Elimination of Poverty in Municipal Areas (MEPMA).
These had been federated as Village Organisations (VOs)
and as Slum-Level Federations (SLFs), respectively. These
were further federated at mandal level as MSs and TLFs.
These federations have been registered under the Mutually
Aided Cooperative Society Act 1995. There were 45,169
VOs in 1, 099 MSs and 9,968 SLFs in 234 TLFs.
Stree Nidhi was specifically formed to meet the needs
of women for poverty alleviation with the support
of SERP and MEPMA. The unique features of Stree
Nidhi are:
(i) It is a community-owned financial institution.
(ii) 50 per cent of allocation of credit if for the poorest
of the poor.
(iii) It has a low-cost delivery model using the existing
ecosystem.
(iv) It ensures credit discipline and does not encourage
defaulters.
(v) Credit disbursement is done in 48 hours through
electronic payment system.
Interest rates charged by Stree Nidhi are 12 per cent
to MSs, 13 per cent to VOs and 14 per cent to SHG/
member. Maximum loan amount per SHG is restricted
to Rs. 1.5 lakh and 25,000 per member. Stree Nidhi lays
much emphasis on efficient functioning and rewards,
better performance with higher limits based on the rating
of these delivery agencies. Working on a small margin of
around 1 per cent, it uses the existing networking and
technology platform to minimize the cost of operations.
It recovers loans using the large network of VOs/ SLFs
and MSs and TLFs. The merits of the Stree Nidhi model
is that it takes care of the community’s banking needs
