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Chapter 14: Policy Brief
14.1 Has voluntary savings impacted SHG members?
The SHG members have come together for elevating themselves to a better state, both
financially and socially. NABARD has played a big role in the change. Voluntary
savings started off to discipline members to save regularly – a very useful product.
Members have innovated on the savings product and made their savings corpus earn for
them by lending it out to members and earning an interest too. Has this product has
affected them positively. However this section will discuss what better products can be
offered to them.
14.2 Why do we need action?
Voluntary savings has created a sense of discipline among members, however
since many years there has been very little innovation mooted by the NGO itself.
Most members understanding the power of savings and are reaching financial
institutions. But the products of these institutions seem more tuned to the elite.
There is an urgent need to innovate in terms of products. For example members
are very attracted to the LIC insurance product more as a savings devise rather
than a means of insurance. Hence more flexible savings products can be
introduced.
We find that most SHG groups do like the voluntary savings and members use the
same through internal loans for their child’s education, marriage/function or for
household expenditure, like house repair. Over the years they see the benefit of
savings and some have the power to save more. However they feel that unequal
