FAMILY INSTITUTIONS
Our Money…Our Bank..Our Decision!
Microfinance initiatives of CECOEDECON with Rural Women
With international organizations pushing to eradicate extreme poverty and hunger, CECOEDECON invent numerous self-help groups (SHGs) in Jaipur District of Rajasthan and scaled up its efforts to empower women. CECOEDECON’s micro-financing initiative, aims to enable the poor rural women in the province of Rajasthan, India, to improve their socio- economic and political status along with livelihoods and quality of life. CECOEDECON organized rural women in Self Help Groups (SHGs) and began the journey of women empowerment.
Of the one billion people in India’s workforce, 94% work in the “unorganized sector. The unorganized sector consists of non-unionized jobs such as domestic assistants, construction workers, and road-side stall holders. A silent majority of this unorganized sector workforce consists of mothers, who in addition to working for wage labor, agriculture, also run their households and they do not posses property in their names. Since banks do not always acknowledge these types of employment, banks often deny these SHGs access to savings, loan, and credit services. This lack of access to capital hampered financial security and upward mobility. So, SHG leaders often face inability to take loan from Banks.
CECOEDECON was at Phagi and women complaining for non-cooperation of Bank. It decided that we will organize our own Bank! Initiative was launched in 2004 at Phagi after getting Cooperative Registration and it was named “Apni Sahakari Samiti.’ Now financial support and transaction is in their access and they feel comfortable to see women managers to deal with.
ST/ SC women posses a poor economic status and has no source of livelihood security in Rajasthan. Association with the cooperative has made a change in their life. The cooperative also deals with external partners like NABARD and SIDBI.
Following the success of Phagi cooperative model, CECOEDECON registered Women Cooperatives at four blocks. While working with small salt producers at Nava, in Nagaur District organization realized that they need financial and organizational support to launch their own iodized produce to come out from the exploitation of companies. All the salt producers of the area were mobilized and organized to establish cooperative and today they are independent financially to launch their own product. The details of each cooperative are as follows:
The movement has transformed women’s lives through empowering them financially- socially and politically. CECOEDECON helped the women to build financial security, organizational support networks, and leadership skills. In recent years, it has become a significant institution for women to link up. NABARD and National Institute for Rural Development (NIRD) have declared it a successful model. CECOEDECON has 4530 SHGs in its operating area with 63421 members.
Shahbad Cooperative was registered in a situation when all the Banks in the area were in the loss due to non repayment of loan under various government schemes. It was the first cooperative of the Shahbad and nobody supposed that it would be a successful endeavor. Tribal are not aware about financial issues and mediator, local money lender exploit them through varied forms of lending money. CECOEDECON made them aware about all the issues and educated to take loan, utilization for livelihood generation and repayment of amount timely. Currently this is one of the best cooperative in the region and Bank Managers interact with Cooperative Managers for understanding the community dynamics.
Block & District
Chaksu, Jaipur
Newai, Tonk
Malpura, Tonk
Shabad, Baran
Year of registration
2004
2008
2008
2010
Turnover In Lacs
1518.90
586
583
170
No. of women provided loan
22074
5638
10282
3367
Total SHGs
1244
291
509
121
Cooperative of Nava has participation of male & female
Category wise Members of Cooperatives
Block
Newai
Malpura
Shabad
Chaksu
ST
334
236
506
570
SC
1104
1339
436
5766
OBC
500
3049
368
5675
GEN
604
1901
310
5989
Minority
0
630
70
0
Total
3089
7155
1690
18000
STRUCTURE AND PROCEDURE OF COOPERATIVE
Each Cooperative, established by CECOEDECON is following same structure and procedure for membership, loaning and meetings. Each Cooperative has an Executive Committee of 10 members, including Chairperson and 1 secretary. Staff has been recruited by the Cooperative for office work and a Manager is there to support the procedures. All the Staff is recruited and paid by cooperative itself. Executive Committee organizes annual General Meeting of the cooperative with one representative member from every SHG. Secretary and Chairperson share the status and progress in the meeting and acknowledge the contribution of supporters. Executive committee meets every month to discuss the goals of the month, planning strategies and recovery etc.
The SHGs serves as a financial intermediary for between 10-18 women. SHGs are registered under cooperative and generally consist of voluntary micro-entrepreneurs from different social and economic backgrounds. SHG members meet up to save small amounts of money regularly, and make mutual agreements when contributing to a common fund or meeting a member’s emergency needs. SHGs under deposit their savings at cooperative and avail loans as per the mutual consent within them or individual needs. SHGs also organize their meeting on monthly basis and members deposit their saving.
A loan Committee consisting the Executive Committee members, Manager and Branch in Charge has been formulated to support the cooperative in procedures, deciding loan amount to applicant and updating the papers. Cooperatives raise its turn over through membership fee, Regular Deposit, fixed deposit, loans from NABARD & SIDBI and services to other institutions.
Cooperative of Shahbad block has formed 83 Joint Liability Groups (JLG) to support the small industries which are in loss. 5 – 0 women comprise in a group and take loan to support one woman. The initiative has been supporting 38 women to reorganize their small industries and all the group members sustain her business.
Two Producer Groups have been registered in Newai block with 120 women. These are involved in generating livelihood through organic farming, dairy, horticulture etc.
ROLE OF COOPERATIVE IN WOMEN EMPOWERMENT
Cooperatives helped to address the challenges for many communities. It enables low-income families to access loan finance. Each member contributes a small amount of money to the collective. SHG members can borrow money from the collective to finance weddings, household purchases, health emergencies, self employment etc.
The effects of these savings-credit institution reach well beyond the financial benefits. The SHGs also serve as a platform to address social issues such as maternal health, nutrition, domestic violence, and sexual harassment of women, education of girls, village development, family well-being, and alcoholism in their village. They with the cooperation of local governance have resolved many issues of malfunctioning services, closed liquor shops, supported victims of atrocities and sexual harassment etc. Financial independence, greater self-confidence, and a voice in social issues are just some of the positive by-products of the SHG movement. . Every SHG has been oriented towards the social cause and village development through training, linkages with existing community based organization and local governance. Members are now aware about their human rights, take part in political concern and stand for their families at varied areas; they are more concerned about the elimination of gender discrimination, education of children, and marry their children in adultery. Many of the SHG women have contested and elected in local governance.
