Deepening Financial Inclusion: Lessons from the Initiatives of Hand in Hand India

The objective of financial inclusion is to promote inclusive growth. Of late, India has recorded very good progress in financial inclusion. A number of institutions have been instrumental in achieving significant strides in financial inclusions. A unique credit plus model of Self-Help Group (SHG)-based Microfinance programme, evolved by the Hand in Hand India, a Tamil Nadu-based international non-governmental organisation (NGO), has given a major boost to financial inclusion. The organisation follows a holistic approach that includes trainings for members, providing loans for purchase of mobiles, consumer goods, biomass cook stove and solar lamps, for dairying under value chain approach, for education, for water and sanitation and for home improvement. Their approach has enhanced the entrepreneurial capability of women, supported enterprise creation and created jobs at the bottom of the pyramid, which led to an increase in the income of the members. These varied initiatives would not have been possible without active support from banks and fintech companies. Thus, collaboration amongst NGOs and microfinance institutions, banks and fintech companies are essential to further deepening of financial inclusion.