Self Help Promoting Institute (Nabard)

Self Help Promotion Institutions (SHPIs) is a scheme of NABARD for promotion and financing of Women Self Help Groups (WSHG) in association with Government of India is being implemented across 150 backward districts of the country. The scheme is an attempt at having Self Help Promoting Institutes (SHPI) to work not merely as an SHPI for promoting and enabling credit linkage of these groups with banks, but also serving as a banking / business facilitator, tracking, monitoring these groups and also being responsible for loan repayments. The objective of the scheme is to saturate the districts with viable and self-sustainable WSHGs by involving anchor NGOs /support
agencies who shall promote and facilitate credit linkage of these groups with banks, provide continuous handholding support, enable their journey for livelihoods and also take responsibility for loan repayments.

KALP, as an anchor NGO / support agency had been selected by in one of the identified districts of Chhattisgarh state for implementation of the project. NABARD defined five types of self-help promoting institutions (SHPI) as follows:

• NGOs or trusts or societies which promote SHGs for bank linkage. It does not include NGO/MFIs which are themselves financial intermediaries.
• Banks are themselves SHPIs when branch staff themselves promote SHGs, from scratch, and then mobilize their savings and lend to them. The banks may be commercial banks, or RRBs, or co-operative banks.
• VVVs are farmers’ clubs which have been set up, usually with assistance from NABARD, and initially to improve the credit culture in their community.
• Self-employed individuals are people who promote SHGs not as employees or members of an institution but as individuals. They may do this as genuine volunteers, without any remuneration, or they may earn some income from the activity.