Activities within the grant and expected impact:
In Rajasthan, more than 70,000 of the over 100,000 SHGs have been organised by government departments. Following the growing recognition of microfinance as a tool for development, there has been a heightened interest in the government to improving the quality of existing groups and promotion of new groups.

Based on this interest, the department of women and child development, the government of Rajasthan (DWCD), the centre for microFinance, and two of the Trust’s field partners – PEDO and Ibtada, have come together to pilot the intensive strengthening of SHGs promoted by the department in two blocks in Rajasthan, one each in Dungarpur and Alwar districts.

500 old and 200 new groups comprising of 9,000 women members are being covered under the project. Activities include:

	Training and capacity building of DWCD staff, including 100 grassroots workers
	Training of SHG leaders
	Promotion of livelihood activities for the SHG members.

The benefits expected, are in terms of increased access to credit, reduced interest rates, and linkage with livelihood promotion activities. Current credit flow to the SHG members would increase from Rs2,000 per member to Rs5,000 per member. About 5,000 women will be covered by insurance, while increasing their incomes by Rs10,000 per annum from livelihood interventions.

With 700 groups, there will be mobilisation of credit of Rs35 million from banks. The model could then be replicated in the entire state, and it will be instrumental in strengthening about 100,000 SHGs involving 1 million women.