ASA's micro finance programme is based on the recognition that in an augmented natural resources condition (through natural resources management interventions), an appropriate credit mechanism can pave the way for investment on farming and its diversification, thus creating more employment within the farming sector.

ASA follows the SHG based micro finance model. 15-20 households are represented by each SHG, with membership restricted to one person per household. Women are encouraged in SHGs. A block level federation is formed when the number of SHGs in the block reaches to about 100-150. One Federation provides service to approximately 350-400 SHGs.

Operational Area: 214 villages of 5 districts.

Major Past and Ongoing Projects 

	Name of Project	Sponsor	Duration
1.	Micro Finance-Partnership Model	HDFC	2006-2009
2.	Micro finance-Direct Lending Model	HDFC	2006-2009
3.	Credit linkage of SHGs in 3 blocks of Jhabua district, M.P	NABARD	2007-2010
4.	Promotion of Micro Finance through SHGs Phase II	Paul Hamlyn Foundation, UK	2006-2008
5.	Promotion of Micro Finance through SHGs	Paul Hamlyn Foundation, UK	2003-2005

Key Results

• More than 923 SHGs are functional with a savings base of Rs. 83.77 lac and credit disbursement of 211.41 as credit to members through bank linkages. There are 2 federations of SHGs at the block level which function as intermediary facilitating agency between the SHGs and the banks.

• ASA sets up a Micro Finance Institution, Manager appointed, Policy guidelines and operational manuals finalized. Formal registration completed under section 25 of Companies Act 1956. Company named "ASA Development Services".

• Initiated SHG linkage process with HDFC Bank in their partnership model. Disbursed over Rs.6 million, with collection of monthly interest. Success rate 100%.

• Started on lending activity.

• Micro insurance cover provided to 667 members of various SHGs.

Further Reading

• Impact of ASA’s MFP on the migration trend of tribal people of 5 blocks of Jhabua district, M.P. (2006)

• Degree of inclusion of poor and v.poor category households in ASA’s MF programme in the tribal district of Jhabua, M.P. (2006)

• Promotion of MF in the Tribal Districts of Jhabua (MP) & Dahod (Gujarat) by ASA : Assessment of Progress and Scope for Replication.

• Feasibility Study of A Micro-Finance Initiative in the Jhabua district of MP.

• Formulation of a cost-effective strategy for the MF programme.

• Average annual credit needs of households of different socio-economic classes in Ranapur block of Jhabua district, MP.

• Indebtedness of tribal of the region.