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Chapter 12: Expanding the scope of SHGs
12.1 Introduction
Having understood the role of voluntary savings and its use to SHG members, it is
worthwhile to understand the lessons from the same. Some of the early practices have
benefitted the SHG members, while some others can be improvised to make members
have greater benefit and less vulnerability to shocks. There are lessons for emulation and
new practices that can be introduced. Case 4 –Savings without Insurance is a case to
point to movement towards insurance products for members.
This chapter examines the research question “Does the role of voluntary savings form a
potential for innovations for expanding the scope of SHGs?” (TOR 9)
12.2 Lessons for replication
12.2.1 Need for innovation in savings products
The above sections clearly indicate that the SHG members do save and have the power to
save. In Tamil Nadu they have moved from the mandated savings. One main reason for
the same could be due to their expenditure. Since about 50% of members access the LIC
product we do think that the voluntary savings has had a positive impact and there is
further scope for product innovation. It is possible to create other savings products too
like the “recurring deposit scheme” whereby members with capacity can save larger
amounts.
