Collaborative Models in BWDA-BFL and Their Self-help Groups in India

This briefing note presents preliminary findings of field research undertaken in Tamil Nadu to study relationships between stakeholders in the microfinance market, and amongst SHG members as part of a Leverhulme-funded project.

The study focuses on collaborations between Bullock-Cart Workers’ Development Association Finance Ltd. (BWDA–BFL), a nonbanking financial services company with microfinance operations, and its shareholders, and among members of SHGs of BWDA–BFL. The study is based on interviews with the MFI, its partners, and SHG members to determine the level of financial flows and degree of interaction.

The study finds that collaborative models can be as diverse as the number of SHGs. Key findings include:

• Strong correlation is seen between number of SHG members who feel better off since joining the SHG, and number of members who perceive the SHG to be financially sustainable;
• Perception of financial sustainability of SHG reduces dependence on money-lenders among members;
• Negative correlation is seen between number of members who buy land and number of members who spend money on children’s education;
• MFI has multiple relationships with a major government funding institution, which may make it vulnerable to sudden policy changes.