1. Social mobilisation and empowerment of women AP Model for comprehensive poverty eradication

2. Vision: every poor family out of poverty improved status in society comprehensive food security – freedom from hunger income - minimum of Rs.5000/- per month, from 3 - 4 stable livelihoods (agriculture, allied,etc) house-hold expenditure controlled Comprehensive risk management good shelter good health and quality education

3. Holistic model – covers all dimensions – economic and social Inclusion - 90% of rural poor in S.H.Gs Special focus on ultra poor and vulnerable Gender balance – intra family equity Micro finance Food Security Health & Nutrition Agri - Marketing Non-Pesticidal Management of Agriculture Dairy Jobs Insurance

4. A.P Federation Model SHGs V.O 150- 200 MMS 4000 6000 - Z S 200,000 400,000

5. Outreach – S.H.Gs in all villages of AP – More than 90% of rural poor organised – 87.5 lakhs rural women organised into 7.0 lakh S.H.Gs (upto March 2007) – (35% of all S.H.Gs in India country are in A.P) – 33,747 VOs, 1083 MSs and 22 Z.Ss formed – Universal coverage of all poor

6. recent intervention for addressing the high cost debt of the poor Total financial inclusion

7. Objectives To address all the needs of the poor-deepen the credit inflow To transform money lender – dependent rural poor into bankable community To eliminate high-cost interest regime form the lives of poor To arrest the resource drain from the poor To build up diversified & multiple livelihoods of the poor

8. SHG-Bank Linkage in AP 197 454 754 1017 2001 3063 6500 9000 2001-022002-032003-042004-052005-062006-072007-082008-09

9. Expenditure Portfolio of the Poor Food Health problems – minor/major Education Interest outflow Working capital - farm/non-farm Assets – land, cattle, non-farm Housing – construction, repairs Life cycle ceremonies

10. Indebtedness of the poor Each asset-less rural poor family at present needs Rs.40,000 credit The bank finance accessed by the poor family, at present is 10,000 – gap: 30,000 Gap at State level: Rs.25,000 crores Debt from informal sources: 15000 crs Interest payments to informal sources : Rs. 5000 crores per annum

11. The impact of high cost debt on a poor family Per capita annual debt servicing burden: Rs.6000 10 – 40% of income for servicing high cost debt This burden is neutralizing all poverty eradication efforts aimed at income generation Priority: to address high cost debt

12. Cost of servicing loans from money lenders/MFIs - per S.H.G Avg. Loan per S.H.G Rate of interest Monthl y interest paid Interest per annum SHGs per district (avg) Total annual interest 1,50,000364,80057,60032,000 184 crores Bank linkage per district 2006-07: 150 crores Annual interest paid by all SHGs : 184 crores

13. T.F.I Process Effective utilisation of the S.H.G network Facilitate each SHG to identify all the financial needs of each members family Development of Micro-Credit Plan by the group itself Participation of Bank Manager in the process of development of MCP by the group

14. T.F.I Process Role of S.E.R.P Pro active role of SLBC Involvement of all banks Adoption of Micro credit planning process as the basis for bank linkage, and, not multiples of savings CRP strategy Continuous nurturing of S.H.Gs by the S.H.G federations and D.R.D.As Pavala vaddi Continuous monitoring of recoveries

15. Micro Credit Plan Micro Credit Plan components: - Debt swapping- the loans taken by the poor from money lenders at high rate of interest - financial requirement for assets acquisition and working capital - financial requirement for social needs – food security, health, education etc.,

16. Micro Credit Plan Name of the SHGBank Account no.Bank-branch name: VO NameVillage Name:Mandal Name: Sl no Name of the membe r Social Staus (SC/S T/BC/ OC) Eco Stat us (PO P/P oor/ NP) To liquidate high cost debtsIGASocial needs Grand Total Money Lender s MFI Other s Tota l Unit Investmen t TotalNeed Require d amount Total TOTAL TFI Plan total:Signatures of SHG reps: Outstanding bank-linkage:1 Grand Total:2

17. T.F.I Achievement Implemented in 304 villages with 183 crores in 2006-07 In 07-08, it is planned in 5000 villages with Rs.4,000 crores to cover 10,00,000 families Quantum of finance ranges from 80 lakhs to 1crore 50 lakhs to each village Per group finance: quantum jump from 83,600 to 450,000

18. Bank – Linkage amount taken under T.F.I in Maharajpeta (V) Consisting of Maharajpet, Gopuralam & Dontanapalli Hamplets of Rangareddy Dist No. of SHGs : 25 No. of Members : 264

19. Loan Amount Taken Under TFI in Gopularam H/o Maharajpet (V) of Rangareddy District No. of SHGs : 11 No. of Members : 96 Social Category : SC

20. Relief in interest burden per annum in Gopularam H/o Maharajpet(V) of Rangareddy District No. of SHGs : 11 No. of Members : 96 Social Category : SC

21. Building up of Assets of the poor in T.F.I. Village : Gopularam No. of SHGs : 11 No. of Members : 96 Social Category : SC

22. Increase in Annual Income of the poor in Gopularam H/o Maharajpet (V) of Rangareddy District No. of SHGs : 11 No. of Members : 96 Social Category : SC

23. EFFECTIVE IMPACT OF TOTAL FINANCIAL INCLUSION ON THE POOR IN GOPULARAM h/o MAHARAJ PET (V) After TFI Before TFI

28. Impact on the bank branch Participation of bank manager in the process Increase in the access by the poor to the bank 100% recovery in new-intervention villages Increase in the profitability of the bank- 100% increase in rural branches

29. Impact on the poor Huge mental relief in switching over from money lender to the bank Reduction in interest payments in each family Increase in asset base of the family Unleashing of entrepreneurial spirit of the poor Increase in health conditions of the poor-as it results in improvement in food in-take by the poor Improvement in childrens education and higher education in poor families

30. Sustainability of the Model Enhanced savings by individuals, in S.H.Gs and in V.Os Social Security: - RD for the children of members - Life, health and asset insurance Reduction in expenditures: - Food Security - NPM - Micro Irrigation Intervention in value chains of key livelihoods of the poor