SHGs & Microfinance

Prime Trust staff forms women’s Self-Help Groups (SHGs) in Pondicherry and in the neighboring districts of Villupuram and Cuddalore. Prime Trust focuses on forming groups in the rural areas that are less targeted by other organizations. The role of Prime Trust is to provide a channel of communication between SHGs and banks. It encourages SHGs to open savings accounts, and helps to set up low interest rate loans from the bank. The loans are most commonly used to establish small businesses which often are run collectively by group members. When these enterprises start to turn a profit and a group successfully pays off its first loan, the bank offers a larger sum so that the enterprise may continue to grow. If you want to learn more about SHGs please follow this link.

Vocational Training

Many women may be interested in using their loans to start a small enterprise, but do not have any formal vocational training. Prime Trust arranges workshops and meetings with local merchants, other development organizations, and its SHG members in order to offer practical income-generation activities. Trainings range from tailoring, incense making, and sewing shoes.

Challanges & Advancement

The SHG model, as any development scheme, presents its own set of challenges. In light of Prime Trust’s own experience from field work and reports from across India, the organization is constantly developing new strategies to limit the risks of defaulted loans, poor communication between SHGs and the organization, and resource overextension. Prime Trust is computerizing its accounts and collecting vital information about each member so it can better track their progress, assess their needs, and provide appropriate guidance. The organization also serves as a mediator for any member conflicts that threaten the stability of the group. Finally, Prime Trust limits its number of SHGs to a reasonable size (25 per staff member) and sets a maximum distance radius (15 km) to limit overextension and ensure the field-staff can offer relationships and their full services regularly.

Accomplishments

• Currently manages more than 100 active groups
• Starts relationships with groups which allow for further social programs such as awareness programs
• Started major initiatives to computerize the accounts