NBCFDC Micro Finance Support Transforms Unarvu SHG Catering Enterprise
The Ministry of Social Justice & Empowerment published a case study demonstrating how the National Backward Classes Finance and Development Corporation (NBCFDC) Micro Finance Scheme enabled significant economic transformation for a women-led Self Help Group in Kerala. Unarvu Self Help Group, led by member Beena, faced substantial financial constraints in establishing and expanding a catering business due to limited access to capital for essential equipment, raw materials, and operational requirements.
In 2021, the group received microfinance assistance of ₹5 lakh under the NBCFDC Micro Finance Scheme, which proved to be a turning point. This financial support enabled the establishment of a catering unit in 2022 through collective effort and shared responsibility among the women members. The enterprise created a dependable source of livelihood and significantly improved the group's financial position.
The most notable outcome was the dramatic income growth achieved by the SHG. The annual income increased from ₹1,20,050 before receiving the loan to ₹4,19,564 after the assistance, representing a 249% increase that reflects the enterprise's successful growth and enhanced earning capacity. This higher income has strengthened the financial well-being of Beena and her fellow SHG members, enabling them to contribute more effectively to their households and move toward greater economic independence.
The case study highlights how accessible institutional finance can help women-led Self Help Groups overcome economic barriers and turn collective aspirations into viable livelihood opportunities. The intervention has also enhanced the members' confidence and ability to manage a sustainable enterprise, demonstrating the value of timely financial assistance, collective initiative, and women's entrepreneurship in creating sustainable livelihoods.