Appendix 1 Interview Schedule on Effectiveness of …shodhganga.inflibnet.ac.in/bitstream/10603/24475/12/12_appendix.pdf · Interview Schedule on Effectiveness of Self Help Groups

220

Appendix 1

Interview Schedule on Effectiveness of Self Help Groups in reducing poverty and unemployment

(with special reference to Salem District) Dear Sir/Madam, I, Balasubramaniam. R, doing research leading to PhD (Management) under Part-time in the Department of Management Sciences, Anna University, Chennai have to submit a thesis to Anna University, Chennai as a part fulfilment for the

Self Help Groups in reducing poverty and unemployment (with special reference to Salem District). To write the same I am in need of a few first hand information from the members of the SHGs in Salem District. As such, I am approaching you with this Question Schedule annexed with this introductory letter, and I request you to fill up the same/kindly provide me the information. Your answer will be kept confidential. There is no right or wrong answers. Thanking you,

Yours faithfully,

221

EFFECTIVENESS OF SELF HELP GROUPS (SHGS) IN REDUCING

POVERTY AND UNEMPLOYMENT WITH SPECIAL REFERENCE TO SALEM DISTRICT.

(Target respondents - Individual members of SHGs)

INTERVIEW SCHEDULE

I. Basic Data:

1. Name :

2. Name of SHG :

3. Residential Address:

4. Age group:

Up to 30 years 31 to 40 years 41 to 50 years above 50 years.

5. Education Level

Illiterate School Education up to SSLC School Education up to Plus Two Degree and above

6. Religion

Hindu Muslim Christian

7. Community

BC MBC SC/ST Others

8. Marital Status:

Married Unmarried Others

9. Sources of SHG activities:

NGOs Government Agencies Impact of other SHGs Other family members / neighbors

10. How long you are a member of the SHG movement?

One year or less. More than 1 year up to 3 years. More than 3 years up to 5 years Above 5 years.

11. How long you are a member of the present Group?

One year or less. More than 1 year up to 3 years. More than 3 years up to 5 years Above 5 years.

12. Nature of economic activity presently being undertaken:

13. Quantum of Bank loan given to you initially (Rs.):

up to 3,000/- 3,001/- to 5,000/- 5,001/- to 10,000/- 10,001/- to 15,000/- above 15,000/-

14. Quantum of Bank loan given to you most recently (Rs.) :


222

II. Economic Status of the members:

1. Your family Income per month at the time of joining the Group (Rs.):

up to 1,000/- 1,001/- to 3,000/- 3,001/- to 5,000/- 5,001/- to 7000/- above 7000/-

2. Your present family Income per month (Rs.) :

up to 1,000/- 1,001/- to 3,000/- 3,001/- to 5,000/- 5,001/- to 7000/- above 7000/-

3. Your monthly thrift at the time of joining the Group (Rs.):

up to 50/- 51/- to 75/- 76/- to 100/- above 100/-

4. Your present monthly thrift (Rs.):

up to 50/- 51/- to 75/- 76/- to 100/- above 100/-

5. Turnover (p.m.) in your present business/economic activity (Rs.):


6. Net profit (p.m.)in your present business (after meeting the loan repayment commitments) (Rs.):

up to 10,000/- 10,001/- to 20,000/- 20,001/- to 30,000/- 30,001/- to 50,000/- above 50,000/- Changes observed: III. Poverty / Unemployment level:

7. (a)With the initial loan assistance, I was able to start an economic activity:

Yes No

(b) If No, how you managed to raise funds for your economic activity?

I borrowed from local money lenders / others individuals. I borrowed from other banks under micro-finance schemes. I pledged jewels I did not start my economic activity at all with the initial loan assistance.

8. State the level of utilization of the initial loan amount regarding the following factors:

Sl. No.

Factors Low

Medium High

1 Repay my old loan 2 Buy durable items for family 3 s

education

4 Spend for medical needs 5 Spend for other exigencies

223

9. Being a member of the SHG movement I am able to increase my monthly income from my economic activity:

Largely Moderately Minimally

10. The SHG movement has reduced my poverty level:

Yes No

11. If yes, the extent to which it has reduced your poverty level:


12. The SHG movement has reduced my unemployment level:

Yes No

13. If yes, the extent to which it has reduced your unemployment level:


14. The recent loan given to me is:

Highly adequate Adequate Neither adequate nor inadequate Inadequate Highly inadequate

15. Banks are showing interest in extending credit assistance to me individually outside the SHG purview

Strongly Agree Agree Neutral Disagree Strongly Disagree IV. Social changes / awareness:

16. Being a member of the SHG movement there is improvement in my social status:

Yes No

17. If yes, state the level of improvement in your social status:

Low Medium High

18. Being a member of the SHG movement I get respect from other members of my family:

Yes No

19. If yes, state the level of improvement in getting respect:

Low Medium High

20. Being a member of the SHG movement I am participating in social activities:

Yes No

21. If yes, state the level of improvement in your social activities:

Low Medium High

224

V. Health / Environmental / other awareness:

22. Being a SHG member, I am aware of the environmental aspects of our life:

Yes No

23. If yes, state the level of improvement in your environmental awareness:

Low Medium High

24. Being a SHG member, I am aware of the health and sanitation aspects of our life:

Yes No

25. If yes, state the level of improvement in health and sanitation awareness:

Low Medium High

26. Being a SHG member, I am aware of the legal/rights aspects of our life:

Yes No

27. If yes, state the level of improvement in legal / rights awareness:

Low Medium High

28. Being a SHG member, I am aware of the fact that many NGOs are involved in empowerment / Rehabilitation services:

Yes No

29. If yes, state the level of improvement in awareness about the empowerment and rehabilitation services:

Low Medium High

VI. Role of Representatives / NGOs / Govt. Officials:

30. The Representatives help me every time when Bank loan is availed by our Group:

Strongly Agree Agree Neutral Disagree Strongly Disagree

31. The Representatives are very much appreciative of my higher credit needs:


32. The Representatives visit loan defaulting members at regular intervals and impress upon them to make regular repayment of loan/s:


33. The Cluster Coordinators (CCOs) / higher officials of the NGOs are very cooperative in opening the Savings Bank account of the group:

Yes No

34. The CCOs / higher officials of the NGOs are very cooperative in getting credit assistance for the group:

Yes No

225

35. The NGOs follow up with the Bank in getting higher quantum of loan for my increased financial needs:


36. The NGOs follow up with the Banks / Govt. departments for getting subsidy amount to me:

Yes No

37. The NGOs regularly follow up my Bank loan repayments:


38. The NGOs maintain very cordial relationships with me at all times:


39. The NGOs maintain very cordial relationships with the Govt. agencies at all times:


40. The NGOs maintain very cordial relationships with the Banks at all times:


41. While we avail loan facility from the Banks, the NGOs charge a fees for their services, which is:

High Nominal No opinion

42. The Govt. Officials visit the loan defaulting members and impress upon them to make regular repayment of loan/s:

Strongly Agree Agree Neutral Disagree Strongly Disagree VII. Entrepreneurial abilities:

43. The training/s given by the NGOs / others are sufficient and useful:

Yes No

44. If yes, state the level of usefulness and sufficiency:

Low Medium High

45. The training/s given by the NGOs / others gave me more knowledge and skills:

Yes No

46. If yes, state the level of improvement in your knowledge and skills:

Low Medium High

47. With the training you received, state your involvement in training others: Low Medium High

48. Do you agree that because of continuous credit support, you are able to run your small business in a successful manner:


226

49. Do you agree that because of continuous credit support, you are able to buy durable items for your small business:


50. I have improved my knowledge and skills for my further development to become an individual entrepreneur:

Low Medium High

51. I am running my economic activity independently:

Yes No

52. If yes, rate your entrepreneurial abilities (Assign ranks 1 denotes highest ability least/no ability):

S. No Entrepreneurial Traits Ranks

1 Procurement of Funds 2 Procurement of Raw Materials 3 Processing 4 Packing and Delivery 5 Marketing 6 Sale realization (Collection) 7 Funds re-deployment

VIII. Problems faced / Difficulties in the system:

53. (a) Have you switched over from one Group to another Group?

Yes No

(b) If yes, classify the reasons for switch over of the group? (Assign ranks 1 for most for invalid reason):

S. No Reasons for switch over Ranks

1 Transparency - the previous SHG was not transparent in running the group

2 NGO Pressure the new NGO gave pressure to join a group under them

3 Loan Repayment I was not able to repay the loan given by / through the previous SHG

4 Shift in my place of residence 5 Others other reasons

227

54. Do you feel that though you have entrepreneurial abilities, you are facing some difficulties?

Yes No

55. If yes, rate your difficulties:

Sl. No.

Difficulties Highly Agree

Agree Neutral Disagree Highly Disagree

1 Adequate Bank credit 2 Availability of Raw Material 3 Storage facilities 4 Market facilities 5 Transport facilities 6 Demand for my products

from Govt. agencies / departments

7 Marketing in distant places

Remarks:

228

R.

229

230

I.

II. II.(a)

7) a)

b)

231

8) :

9)

10)

11)

12)

13)

14)

15)

232

II (b)

16)

17)

18)

19)

20)

21)

II. (c)

22)

23)

24)

25)

26)

233

27)

28)

29)

III.

30)

31)

32)

33)

34)

35)

36)

234

37)

38)

39)

40)

41)

42)

IV.

43)

44)

45)

46)

47)

235

48)

49)

50)

51)

52)

V. :

53) a)

236

b)

54)

55)

237

Appendix 2

UNSTRUCTURED INTERVIEWS

I. Mr. S. Vijaya Khanna, Assistant Project Officer, Mahalir Thittam

(Government of Tamil Nadu), Salem:

A. What is your opinion on the success and failure of the SHG programme?

In rural areas, the SHG programme is a big success. Most of the

members undertake economic activities. In urban areas like Salem, due to

the spending habit, the SHG members are wasting their loan amount on

consumable items and entertainments. Hence, NPAs of the SHG portfolio of

the banks are increasing. The borrower members are able to change their

place of living very quickly in urban areas, unnoticed by the bankers and

hence tracing them to recover the loan amount becomes a problem. In

villages, this aspect is not there. Hence, the bankers are able to locate the

borrowers, and impress upon them the need to repay the loan in order to be

self sustainable in their economic activity.

B. What are your suggestions to help this situation?

Issue of bio-metric ID cards and universal MIS like CIBIL

programme in banks and putting entries in the family cards are some of the

ways through which the problem of loan recovery can be addressed.

C. Do you agree with the fact that the graduating members of the SHGs are to

be gradually withdrawn from the SHG programme?

Yes.

238

D. Then where do the members get support for continuing their economic

activities?

The bankers should take care of them by extending individual loans.

E. Do you know that the MSME programme can help these type of

successful small entrepreneurs?

I know about the MSME programme and the MSMED Act 1996 of

the Government of India; but have no idea as to the fact that these graduating

members can be converged with the MSME programme.

F. Then what are your suggestions for familiarising such convergence?

Orientation programme for the bankers and officials, who deal with

SHG programme could really improve such convergence.

G. What are the other impediments you noticed in the SHG lending programme

of banks?

Private Banks like HDFC, ICICI are collecting higher rate of

interest, follow faulty collection methods and insist on security for extending

loans to SHGs. Hence the public sector banks alone can take further leads in

the SHG programme.

239

H. What is the maximum loan a group can get from the bank and what is the

maximum subsidy limit that is prevalent now?

The subsidy for EA is 1.25 lakhs and banks could lend up to 5 times

of the subsidy. Hence, the maximum loan under EA could be Rs.6.25 lakhs

for a group.

I. What according to you are the positive developments in the SHG

programme?

The PLFs are growing stronger and now we have Slum Level

Federations and Habitat level Federations to take care of the members very

near to their places.

J. Under such circumstances can the NGOs be delinked from the system once

the PLF model becomes a big success?

The NGOs and the PLFs should co-exist in order to ensure a healthy

environment of taking care of the existing/ new/ prospective members for the

groups.

K. Please tell me about your other views for the betterment of this SHG

programme.

Some of the key officials are not updating their knowledge about the

SHG programme and the recent happenings in this sector. Hence, they need

to regularly update their knowledge in order to maintain the momentum

growth of this movement.

240

II. Mr. K. Manivasagam, Manager, Canara Bank, Fort, Salem branch:

A. There is a general feeling that the SHG programme is a success in rural areas

and a failure in urban areas. Do you agree with this view?

Yes. I agree. This may be due to the urban culture, where the

members do not bother to repay the loans availed from banks.

B. Why in some of the areas, there are NPAs in the SHG portfolio? What is the

need of the hour to prevent accumulation of such NPAs?

The mindset of some of the members of the groups, and that of some

of the NGOs. Their mindset has to change for the total success of the

programme in all areas like urban and rural.

C. Have you considered loans to the SHG members, who successfully run their

economic activity, outside the SHG purview?

No. But in genuine cases, based on the project and viability, they

can be given loan individually, outside the SHG purview.

D. Do you think that familiarizing the MSME programme will be of help to

such graduating members and, if so, who should take lead in familiarizing

the MSME programme?

Yes. The policy makers should take the initiative in this respect and

a specific programme for implementation could help in familiarizing the

MSME programme.

241

III. Mrs. P.V.E. Rani Rathna, Manager, UCO Bank, Namagiripet branch:

A. You have worked in rural areas, where the SHG loan portfolio is healthy and

thriving. Is it not?

Yes. In Pethanaickenpalayam block in Salem district, where I

worked in the recent past, the SHG loan portfolio was very healthy.

B. What could be reasons for such a healthy status?

There are so many reasons. The presence of VKP field officials

made a big difference. The mindset of the borrowers in general was very

good. They undertake economically viable income generating activities and

are able to generate adequate turnover to repay the loan and also earn some

surplus profit for their survival.

C. What is your opinion about familiarizing the MSME loan schemes through

the graduating members of the SHG movement?

It is a very good idea. The graduating members of the SHGs are

really in need of higher quantum of loan individually in order to convert

their small business into big entities.

D. Who can be given a lead role in familiarizing the MSME movement?

The implementing level officials, viz. the BDOs of the government,

the officials of the MSME ministry, the bank branch managers, NGOs, PDF

representatives together with the SHG representatives could play the

required lead role towards this task.

242

IV. Mr. R. Srinivasan, Manager, Canara Bank, SME Branch, Salem:

A. Have you worked in branches, where exposure to SHG lending is

considerable?

Yes. I worked in branches which have exposure to SHG lending.

B. What is your experience about the SHG lending? Is this programme of the

government is properly utilized by the poor people?

The rural poor are mostly benefitted. They are sincere in starting and

running an economic activity after availing the bank loan.

C. Have you ever had any request for individual loans outside SHG purview,

from the members of the groups for the expansion of their economic

activities?

No.

D. Please tell me your views on promoting the MSME programme.

Frankly speaking, our bank is spearheading this MSME programme

for the benefit of the people, but only few people come forward to avail this

loan facility.

E. Who are the target groups for this MSME programme.

I have no knowledge about any specific target group. Any

entrepreneur with a feasible/viable project can approach the bank and their

request shall be processed based on merits.

243

F. What is your opinion about taking the graduating SHG borrowers into the

MSME fold?

It is a good idea. They are the people, who can be considered as

target group for availing the MSME loans. This MSME loan shall be very

useful for them to expand their small business into a medium / big business.

V. Mr. A. Vasudevan, Branch Manager, State Bank of India, SME Branch,

Salem:

A. What is your experience about the borrowers of the SHG programme?

Poor people are utilizing the SHG loan opportunity to the maximum

extent. In many cases, the loan amount goes to augment the small business

activity of the main income earner in a family. But in rural areas, the

borrower themselves undertake one of the economic activities, which are

viable in their area.

B. What is your opinion about helping the borrowers who are sincerely

undertaking any one of the economic activity successfully?

Government should come out with specific programme for uplifting

them to the next stage.

C. Do you think that linking them (i.e. the graduating members of the groups)

with the MSME programme shall given them more funds to expand their

business activity?

Yes. Definitely this is a good idea. Since they are successful in their

small business ventures, they shall easily comply with the requirements for

availing a loan under the MSME programme.

244

VI. Mr. Liyakath Basha, Deputy BDO, Omalur, Salem:

A. What is the nature of your present assignment?

My present assignment is promoting and follow up of the SHGs

through PDF i.e. helping the PDF representative to identify and form new

groups with poor people hitherto not covered under SHG programme,

helping them to: (a) open bank accounts, (b) get bank loans and (c) get

subsidy, etc.

B. What is your idea about convergence of the graduating SHG members in to

the MSME programme?

I have really not thought of about such an idea. It is good that if the

graduating members get more funds for their operations. There is every

possibility that they may grow as big entrepreneurs.

C. If the government comes out with such a policy initiative, will you show

interest in making the MSME programme as a successful movement like the

SHG movement?

Definitely I shall be happy to a part of such a big movement in

promoting the enterprise among the SHG members.

Documents

Appendix 1 Interview Schedule on Effectiveness of …shodhganga.inflibnet.ac.in/bitstream/10603/24475/12/12_appendix.pdf · Interview Schedule on Effectiveness of Self Help Groups