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4.8. Suggestions to Improve the Working of SHGs

The An integrated approach is required for meeting overall credit needs of a poor family in terms of backward linkages with technology and forward linkages with processing and marketing organizations.

Credit needs to be provided for diversified activities including income generating livelihood activities productions, housing consumption loan and against sudden calamities.

The delivery system has to be proactive and should respond to the financial needs of the farmers.

Training programmes relating to management of finances, maintaining accounts, production and marketing activities etc. should be given.

Simplify the process of giving loans, i.e. reduce the number of questions to important non repetitive ones.

Provide gender sensitization training to bank staff so that they are sensitized to the needs of rural clients especially women.

Adequate insurance coverage should be provided to the business units promoted by SHG against the financial losses to safeguard the interest of the entrepreneurs.