Kudumbashree with its core mission to wipeout absolute poverty through women empowerment has indeed touched many lives through its integrated, comprehensive approach. Thousands of the poor and the marginalized population are building their lives, their families and their society through these neighborhood groups.

The financial empowerment of women in Kerala through the focused initiative of Kudumbashree has gone long way drawing even International recognition. Since inception Microfinance has been the basic thrust of Kudumbashree to address poverty. It has been proved without doubt that microfinance is the effective tool for development and contributed to the women and economic development of the society to a great extent.

The various activities taken up by Kudumbashree under MF are as follows



Kudumbashree plays a vital role in enhancing the financial status of the less privileged women in the State through its thrift and credit program. The small regular savings of neighborhood groups are pooled together and given out as internal loan to the most deserving member of the group. These loans acted as a leveler to address the immediate financial shocks of the group members.

The function of thrift and credit is the core activity of the Kudumbashree neighbourhood group (NHG), and forms the basis of the weekly meetings of the NHG. The amount of loan and the priority of disbursement are decided by the NHG. The repayment is collected weekly during routine NHG meetings. The total thrift collected by NHGs in the state comes to Rs. 5,786.69 Crore and the internal loans generated are to the tune of Rs. 23,852.45 Crore. Details are reported in the monthly meetings by the CDS.



The Bank linkage program has made inclusive growth possible by providing easy access to bank loans without any physical collateral. The efficiency and effectiveness of the NHGs are verified on the basis of some objectively verifiable and easily identifiable parameters. NABARD has developed a 15-point index for rating NHGs on the basis of which they will be allowed to link with various banks under the Linkage Banking Scheme. The total amount which has been mobilized under linkage banking is Rs. 20,648.26 Crores. The linkage loans may be raised directly by the NHG or as bulk loan through the CDS.


Bank Linkage Status
Financial Year Linked NHGs Linkage Amount in Lakh
1998-1999 10 6
1999-2000 86 100
2000-2001 106 97
2001-2002 169 121
2002-2003 471 302
2003-2004 1098 643
2004-2005 2572 1440
2005-2006 3829 2633
2006-2007 5586 4517
2007-2008 8308 8998
2008-2009 13151 18763
2009-2010 25858 36421
2010-2011 23758 38396
2011-2012 22004 41381
2012-2013 26694 55010
2013-2014 47284 92821
2014-2015 54468 133514
2015-2016 33752 96800
2016-2017 59634 203256
2017-2018 77711 233502
2018-2019 103211 413191
2019-2020 53501 275888
2020-2021 250118 407026
TOTAL 813379 2064826





Easy access to bank linkage program has checked the poor from approaching money lenders. In order to motivate the NHGs to come forward for bank linkage program Kudumbashree has designed an incentivizing program called matching grant. Here the linked NHG will be given a grant of Rs.5000/- or 10% of their thrift( Whichever is lesser)


Matching Grant
Financial Year Number of NHGs received Matching Grant Matching Grant Amount in Lakh
1998-1999 3 0.2
1999-2000 24 1
2000-2001 52 2
2001-2002 49 2
2002-2003 146 6
2003-2004 433 16
2004-2005 1009 32
2005-2006 789 29
2006-2007 2660 103
2007-2008 6754 261
2008-2009 5001 198
2009-2010 22029 865
2010-2011 16579 651
2011-2012 6531 243
2012-2013 5968 222
2013-2014 10354 397
2014-2015 9198 370
2015-2016 2173 87
2016-2017 5882 249
2017-2018 7422 323
2018-2019 5200 260
2019-2020 2500 125
2020-2021 1980 99
  112736 4541.2




Govt of Kerala has introduced a new interest subvention scheme to promote Bank Linkage Program among Kudumbashree Neighbourhood Groups. Under this scheme all Kudumbashree NHGs are eligible for interest subvention to avail the loan facility at an interest rate of 4% on credit upto Rs. 3 lakhs. The benefit of this scheme will be available to the NHGs from April 2016.

The interest subsidy would be provided as annual installments to the NHGs. One highlight of the scheme is the inclusion of joint liability groups for farming in the ambit of the scheme.

Under NRLM( Central Scheme) Interest subvention program all women NHGs in category 1 districts namely Palakkad ,Malappuram, Idukki and Wayanad are eligible for interest subvention on credit upto Rs. 3 lakhs at 7% per annum. Further, these NHGs will be provided with an additional 3% subvention on the prompt repayment of loans.

For category II districts, all Kudumbashree NHGs in rural area are eligible for interest subvention to avail the loan facility at an interest rate of 7%. Here Banks will charge the SHGs as per their respective lending norms and the difference between the lending rates and 7% subjected to a maximum limit of 5.5% will be subvented in the loan accounts of the NHGs by Kudumbashree with the support of NRLM Fund.



KAASS, the Kudumbashree Accounts & Audit Service Society; is a home grown enterprise to ensure proper account keeping in the community network. Each district has been furnished with a KAASS team that has been drawn from commerce graduates and is guided by professional chartered accountants. These teams have been facilitating management of accounts at the NHG, ADS and CDS levels.

KAASS team mainly point out the defects in existing accounting system prevailing in respective NHGs/ADS/CDS and rectify wherever required .There are over 355 members in 46 KAASS groups across the state.



Kudumbashree programs cover 45.85 Lakhs families organized under 3.06 Lakhs NHGs through 1070 CDSs. All NHGs have bank accounts through which members of NHGs have access to savings and credit services of banks. The NHG is acting as intermediary between banks and ultimate beneficiary. At NHG level, it is observed that there is lack of knowledge about banking procedures, misconceptions regarding interest rates and lack of awareness about banking ombudsmen and so on. Kudumbashree has chalked out a comprehensive Financial Literacy Campaign in order to provide a platform for NHGs to be aware of and benefit from formal banking services.

Now there are annual financial literacy programs of various kinds to address NHG members.



E-Shakti or Digitisation of SHGs is an initiative of Micro Credit and Innovations Department of NABARD in line with our Hon'ble PM statement, 'we move with the dream of electronic digital India...'. Digital India is a Rs 1.13-lakh crore initiative of Government of India to integrate the government departments and the people of India and to ensure effective governance. It is to "transform India into digital empowered society and knowledge economy".

Keeping in view the Government of India's mission for creating a digital India, NABARD has launched a project for digitisation of all Self Help Group (SHG) in the country.

Aims and Objectives:

The broader aim of the programme is to support the flagship programme of the Government of India i.e Prime Minister Jan Dhan Yojna (PMJDY) by way of:

  • Integrating SHG members with the national Financial Inclusion agenda;
  • Improving the quality of interface between SHG members and Banks for efficient and hassle free delivery of banking services;
  • Facilitate convergence of delivery system with SHGs using Aadhaar linked identity.


Components of the Project:

  • Mapping of the existing SHGs in the district (bank wise, branch wise);
  • Training of volunteers to collect SHG wise/ member wise data;
  • Data feeding through a customised software in central server;
  • Hosting of data on the web under a dedicated website i.e eshakti.nabard.org
  • Maintaining data centre and data recovery centre;
  • Generating MIS for various users.

In order to execute the plan Kudumbashree has selected 350 animators who will be collecting the base line data of NHGs in the prescribed format and will digitize it in the portal. Kudumbashree has given tablet to all these animators for digitalization of NHGs.

Digitalization of NHGs in Kasaragod district has completed in Pilot phase



No District Success Story
1 Thiruvananthapuram View / Download
2 Kollam

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3 Pathanamthitta View / Download
4 Alappuzha View / Download
5 Kottayam  
6 Idukki View / Download
7 Ernakulam View / Download
8 Thrissur View / Download
9 Palakkad View / Download
10 Malappuram View / Download
11 Kozhikode  
12 Wayanad View / Download
13 Kannur  
14 Kasaragod