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Self Help Group

Group formation

Savings and Thrift

Cluster level federations

Federation of women’s groups will be promoted at the cluster level at an appropriate time, say in the 2nd or 3rd year. Formation of federations would be facilitated only after it becomes a felt need. In the early years, federations are expected to play the role of a social intermediary and help in strengthening weak groups and help in sharing successful experience and articulating common issues affecting women. However, its assistance may be sought in recovering loan arrears, if any, from groups and in performing tasks, which cannot be, ordinarily, undertaken by groups. Cluster level federations would aim at taking over routine and even some important functions of NGOs in the long run. Banks may cultivate relationships with federations as a measure of sustainability. However, SHG loans should not be routed through SHG federations in the early stages of the CLF. This would undermine the autonomy of SHGs. Federations may however extend special lines of credit for housing, toilet construction, etc., which cannot be accessed by SHGs. Even this may be done after 4 or 5 years of CLF formation and only after it has been graded and found stable.  The independence and transparency within the CLF are points of evaluation. 


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