THIRUVANANTHAPURAM: Kudumbashree neighbourhood groups (NHGs), known as the ‘backyard bank’, have deposits worth Rs 9,369 crore in various banks in the state. The project was started with the condition that all members should invest at least Rs 10 every week, while the gradual progress in the number of NHGs, members, and their investments helped the savings head to thousands of crores.
According to Kudumbashree, all NHG members have their own bank accounts with 3.07 lakh NHG accounts being linked to banks so far. This has enabled the NHG members to conduct their own banking transactions and make digital payments.“Savings creation at the NHG level is part of the micro-finance project that Kudumbashree has been implementing since 1998 to promote the saving habits of ordinary women and meet their personal needs. One of the biggest achievements of Kudumbashree is the huge investment made by the NHG members so far,” a Kudumbashree official said.
In addition, the average weekly savings of the NHG members have significantly increased through the Sustainable Thrift and Credit Campaign conducted by the Kudumbashree during 2024-25 period. With this, the Kudumbashree has also earned the reputation of being the women’s fraternity that achieved the highest investment through weekly savings in Asia.
Along with savings, loans can also be availed of from NHGs at low interest rates. By obtaining these loans, one can also avoid the debt trap of private loan lenders. A member can take a loan proportional to the investment according to their needs. If other members permit, they can get more than their own investment amount in the form of a loan. There is an opportunity to take loans in NHGs as personal loans and with mutual guarantees. Till date, Rs 28,723.89 crore has been disbursed to the NHG members in the form of internal loans.
“A considerable section of Kudumbashree entrepreneurs have successfully started their businesses by taking loans from NHGs,” the official added.