Savings and Credit Movement of Andhra Pradesh

This paper discusses the formation of savings and credit groups (SCGs) in Andhra Pradesh (AP), India, and their contribution to the empowerment of women and the alleviation of poverty.

It describes the evolution of Women's Savings and Credit Groups in AP and their following characteristics:

• The members of a SCG are usually neighbours, friends and fellow workers;
• They have the same socio-economic background and provide an opportunity for social interaction;
• SCGs are poor women's substitute for formal banking, and a potential distribution channel for banking services;
• They are also micro-enterprises whose survival depends on their ability to satisfy the needs of the customers.

The paper then lists the major efforts in the promotion of SCGs in AP:

• Development of Women and Children in Rural Areas (DWCRA);
• Special government programs;
• The evolution of NGO retailers as financial intermediaries.

The paper overviews:

• Different approaches amongst the SCGs in terms of lending methodology, legal form, and design of a Secondary People's Organization;
• The main sources of funds of SCGs;
• "Mutually Aided Cooperative Thrift Societies."

The paper concludes by examining some factors that led to the success of SCGs in AP. These are:

• Utilization of an opportunity;
• Involvement of the State;
• Enabling legislation;
• Public awareness;
• Multiple agency collaboration;
• No blue print approach.