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Introduction
Women are an integral part of every economy. In the case of less
developed countries, low income levels of the women pushes them into a
vicious circle of poverty and affects the natural growth rate of the country.
All round development and harmonious growth of a nation would be
possible only when women are considered as equal partners in progress with
men. The rights and protection of women from social inequalities in statute
books are not good enough, some practical solutions are to be acknowledged
and most importantly implemented.
Women have been deprived of economic independence.
Empowerment of women is a holistic concept. It is multi-dimensional in its
approach and covers social, political, economic and social aspects. Self- help
Groups are the voluntary organizations which disburse micro credit to the
members and facilitate them to enter into entrepreneurial activities.
SHGs create empowerment promoting conditions for women to
move from positions of marginalization within household decision making
process and exclusion within community, to one of greater centrality,
inclusion of voice. Most importantly micro-finance programmes enable
women to contribute to the household economy, increasing their intra-
household bargaining power.
~ 1 ~
Micro finance and women empowerment
Micro finance is emerging as the most viable route to extend
financial services to the poor. Microfinance in India has been posited as one
of the key instruments not only in reducing rural poverty, but also in
empowering rural women. Women have, traditionally, been an integral part
of the rural economy in India. A vast majority of women work in the
informal economy or in unpaid family assistance. Micro finance is of
particular relevance to those sections of the working poor that are less likely
to benefit from the opportunities offered by various public works scheme.
An increasing number of microfinance institutions prefer women
members as they believe that they are better and more reliable borrowers
thereby contributing to their financial viability. Women’s capabilities
empowers them to make choices, which is valuable in itself, and also
contributes to greater economic growth and development. Increase in
woman’s resources result in higher well-being of the family, especially
children. In recent years, social status of women has been improved
significantly by a silent revolution in Tamilnadu through the Tamilnadu
Corporations for the Development of Women (TNCDW) and its 426
NGO(Non Government Organizations) partners.
~ 2 ~
Women self-help groups
One of the powerful approaches to women empowerment and rural
entrepreneurship is the formation of Self Help Groups (SHGs) especially
among women. This strategy had fetched noticeable results not only in India
and Bangladesh but world over. Women self-help groups are increasingly
being used as tool for various developmental interventions. Credit and its
delivery through self-help groups have also been taken as a means for
empowerment of rural women. This integrated approach, whereby, credit is
only an entry point, and an instrument to operationalize other aspects of
group dynamics and management, also caters to the need for social
intermediation of these groups.
A self-help group is conceived as a sustainable people's institution
that provides the poor rural women with space and support necessary for
them to take effective steps towards achieving greater control of their lives.
The SHG approach has proved successful not only in improving the
economic conditions through income generation but in creating awareness
about health and hygiene, sanitation and cleanliness, environmental
protection, importance of education and better response for development
schemes.
~ 3 ~
Through organizing informal self – help groups (SHGs), rural
women in India are provided credit and extension support for various
production-oriented income- generating activities. These activities usually
include garment making, embroidery, food processing, bee keeping,
basketry, gem cutting, weaving, and knitting. SHGs are self-governed, with
decisions about production and marketing taken collectively, although the
group leader is responsible for identifying potential marketing centers and
consumers. These groups represent a new culture in rural development,
breaking with traditional bureaucracy and top-down management. Informal
groups empower rural women to manage rural industries and make decisions
collectively for their common economic interests.
Objectives
To evaluate the economic condition of the members before and
after joining the SHG.
To highlight the problem faced by women SHGs.
To examine the roles of the government, the banks & non -
Govt organizations in promoting self-help groups.
To analyze the operating system of SHGs for the mobilization
of saving, delivery of credit to the needy, management of group funds,
~ 4 ~
repayment of loans, in building up leadership, and establishing
linkage with banks.
To offer suggestions based on the findings.
Area of the study
Area of the study is Kondampalayam village. It belongs to the
sarcarsamakulam block located in Coimbatore district.
Methodology
The study is based on collection of data from both primary and
secondary sources. The following tools were adopted for the collection of
data for the present study.
These include:
Questionnaire method
Observation
The primary data was collected from the sample respondents by
adopting the methods of Questionnaire method and Observations. To elicit
the required information, a well structured questionnaire was designed with
~ 5 ~
probing questions. Secondary data relating to the different aspects of self
help groups (the structural set up and functional aspects) collected from
magazines NGO and websites.
Sampling
The data regarding the study are collected from 125 SHG members
belonging to 10 self help groups. The 10 SHGs are randomly selected from
50 self help groups in kondampalayam village.
Scope of the study
The scope of the study is to evaluate how women had empowered
through the self help groups and also its impact in their life and society.
Limitations & constraints
The time factor is a major constraint. Illiteracy and recall bias on
the part of some respondents posed a problem. Difficulties were experienced
in collecting information about their income, expenditure and saving
problem.
~ 6 ~
Chapter Scheme
The present study has been divided into five chapters, namely:
Chapter-I Introduction
Chapter-II Review of Literature
Chapter-III Profile of the area and details about the SHGs
Chapter-IV Analysis and Interpretation of data
Chapter-V Findings, Suggestions and Conclusion.
~ 7 ~
Review of Literature
According to Suguna B. (2001) the process of empowerment has
provided abroad based activity scheduled to the regional , national and
global agencies in which participation has been highlighted, by this method,
participation of women in the decision making process could be enhanced
many fold and progress attained in a short time, the process of
empowerment helps in identifying areas to be targeted planning strategies
for action and outcomes. Empowerment is not a process which is horizontal
or vertical but a process which goes round in a circle.
Verma, S.K. and Saidu Valulla (1991) from their study on self
employed women in Gujarat have observed that the key factors which make
the women in the inferior position are poor economic status, limited choice
in decision making in financial matters and non-availability of opportunities
for participation in money-generating activities.
Rani (1992) conducted a study on potential women entrepreneurs
with the objective of exploring the factors that promoted women to start
their own business. She found that the desire to do something to be
independent was the prime motivating factor, which had influenced women
~ 8 ~
irrespective of their age in setting up their units. Some women viewed
entrepreneurship as a tool for earning.
According to Nanavaty Reema (1992) economic empowerment is
the basis of social and political empowerment for the poor women. The
process of liberation starts only when they are unable to sure the economic
and ecological marginalization through ongoing and local productive work.
By their efforts and products they are organized to penetrate and establish a
foothold in the main stream of the economy.
Karl M. (1995) studied the role of empowerment of women on
decision making and concluded empowerment as multifaceted process,
involving the pooling of resources to achieve collective strength and
countervailing power and entailing and the improvement of manual and
technical skills, administrative, managerial and planning capacities and
analytical reflective abilities of local women.
BhagyaLakshmi J.(2000) while publishing on some strategic
effects towards the empowerment of women seeks to adopt an integrated
approach towards empowering women through effective convergence of
existing services, resources, infrastructure and manpower in both women
specific and women related sectors.
~ 9 ~
Kalyan (2001) examined resources, agency and achievements,
their reflections on the measurement of women empowerment and suggested
that emphasis should be given first to make the rural women come out of
their domestic set up and to join self help groups; Then according to their
needs, interest, skills and feasibility they should be encouraged to undertake
the micro enterprise in the concerned field.
Om Raj Sing (2003) analyzed the role of NGOs in fostering self
help groups and stated that self help groups are necessary to overcome
exploitation, create confidence for the economic self reliance of rural poor,
particularly among women who are mostly invisible in the social structure.
These groups enable them to come together for common objective and gain
strength from each other to deal with exploitation. A group becomes the
basis for action and change. It also helps building of relationship for mutual
trust between the promoting organization and rural poor to constant contact.
The above studies emphasis the need for empowerment of women
in order to promote gender equality, to make women as agents of change in
society and to increase their capability of enjoy life to the full. Looking at
development as freedom and women’s issues from the angle of increasing
their capabilities are better than concentrating on women’s well being. These
studies focus on how women folk can be uplifted through self help groups. It
~ 10 ~
provides an opportunity to improve their financial, social and political status
by their involvement as a team. SHGs promote the quality of life by
motivating female human potential. In addition, the studies quoted above
emphasizes that if women are encouraged to actively involve in SHGs they
would exhibit better their role responsibilities as an entrepreneur, wife,
mother, etc. SHG is agreed to be one of the effective means of
empowerment of women and thus rural development.
Therefore the preceding review shows that the strategy of micro
financing through SHGs can help in a big way in eradicating poverty and
empowering women. However, what is needed is a real change in the
community attitude to depart from the traditional approach to highly
subsidized support to the promotion of self help. This is a time consuming
process but regular follow up and guidance are sure to bring about
substantial improvement.
Definition for Self help group
NABARD defines it as a group of 20 or less people from a
homogenous class who rewilling to come together for addressing their
common problems. They make regular savings and use the pooled savings to
give interest-bearing loans to their members. The process helps them imbibe
~ 11 ~
the essentials of financial intermediation including prioritization of needs,
setting self-determined terms for repayment, and keeping books and records.
It builds financial discipline and credit history that encourages banks to lend
to them in certain multiples of their own savings and without any demand
for collateral security.
Origin and concept of Self help groups
The origin of SHGs is from the brainchild of Grameen Bank of
Bangladesh, which was founded by Mohammed Yunus. SHGs were started
and formed in 1975. In India NABARD is initiated in 1986-87. But the real
effort was taken after 1991-92 from the linkage of SHGs with the banks. A
SHG is a small economically homogeneous affinity group of the rural poor
voluntarily coming together to save small amount regularly, which are
deposited in a common fund to meet members emergency needs and to
provide collateral free loans decided by the group. (Abhaskumar Jha 2000).
They have been recognized as useful tool to help the poor and as an
alternative mechanism to meet the urgent credit needs of poor through thrift
(V. M. Rao 2002) SHG is a media for the development of saving habit
among the women (S. Rajamohan 2003). SHGs enhance the equality of
~ 12 ~
status of women as participants, decision-makers and beneficiaries in the
democratic, economic, social and cultural spheres of life. (Ritu Jain 2003).
The basic principles of the SHGs are group approach, mutual trust,
organization of small and manageable groups, group cohesiveness, sprit of
thrift, demand based lending, collateral free, women friendly loan, peer
group pressure in repayment, skill training capacity building and
empowerment (N.Lalitha).
In Tamil Nadu the SHGs were started in 1989 at Dharmapuri
District. At present 1.40 lakh groups are functioning with 23.83 lakh
members. At present, many men also eager to form a SHGs. The process
by which the group of people with a common objective are facilitated to
come together in order to participate in the development activities i.e.,
savings, credit, income generation, etc, is called group formation.
Goals
Self-help groups are started by non-profit organizations (NGOs)
that generally have broad anti-poverty agendas. Self-help groups are seen as
instruments for a variety of goals including empowering women, developing
leadership abilities among poor people, increasing school enrolments, and
~ 13 ~
improving nutrition and the use of birth control. Financial intermediation is
generally seen more as an entry point to these other goals, rather than as a
primary objective. This can hinder their development as sources of village
capital, as well as their efforts to aggregate locally controlled pools of capital
through federation, as was historically accomplished by credit unions.
Features of Self help group
Generally, SHGs encompass several activities of men and women
but the Indian focus is on financial aspects of SHGs. The salient features of
SHGs are:
Homogeneous in terms of economic status and interest and an
affinity group.
Small in size and their membership per group range from 10
to 20 people.
They are non-political and voluntary and follow democratic
culture.
They hold weekly meetings and mostly during non- working
hours.
~ 14 ~
The features might vary from one SHG to another promoted
by various NGOs, banks, etc.
Characteristics of SHG
Mutual help
This is the primary dynamic process that takes place within the
group It's people helping one another and helping themselves in the process.
Experiences are shared, knowledge is pooled, options are multipled, hopes
are reinforced, and efforts are joined as members strive to help one another.
Member-Run
Member run and "owned". Providing a sense of belonging and
reflecting members felt needs. They are not professionally run groups. If
professionals are involved (and in many cases they are) they serve in
ancillary supportive roles, i.e., they are "on tap, not on top" as some groups
describe it.
~ 15 ~
Composed of Peers
Members share the same problem/experience, providing a
powerful "you are not alone" sense of understanding, which can often lead to
an almost instant sense of community at the first meeting.
Voluntary Non-Profit organization
Volunteer-run, no fees, dues if any are minimal.
Functions of SHGs
To develop a group into a well-managed Self Help Group, the
members should evolve rules and regulations, which are to be adopted, after
discussions with all the members for compliance in full.
Some illustrative guidelines for the formulation of such rules and
regulations are given as under:-
Meeting
The group should meet regularly, ideally, the meetings should
be weekly or at least monthly. They become closer if they meet
regularly. This helps them to understand each other’s difficulties
better.
~ 16 ~
Full attendance in all the group meetings will make it easy for
the SHG to stabilize and start working to the satisfaction of all.
Membership register, minutes register etc. are to be kept upto
date by the group by making the entries regularly. This helps you to
know about the SHG easily. It also helps to build trust among the
SHG members.
The group should have a fixed day or date for the meetings.
This will help the members to plan their routine works in advance.
The group should fix a common place to conduct the meetings.
Savings
Savings should be deposited by all the members in the meeting
itself. This will help to inculcate the habit of regular savings in the
members. By depositing savings in the meetings before all members
will avoid the element of distrust amongst members.
No interest will be paid to the members for their money with
the group.
The members will not be encouraged to adjust their savings
amount against their loan due to the Group. Only at extreme
circumstances the Group shall consider to adjust.
~ 17 ~
Keeping of accounts
Simple and clear books for all transactions to be maintained.
If no member is able to maintain the books, the SHG may take outside
help.
All registers and account books should be written during the course of
the meeting. This creates confidence in the minds of members who are unable to
read and write.
Books to be maintained by an SHG
Minutes Book
The proceedings of meetings, the rules of the group, names of the
members etc. are recorded in this book.
Savings and Loan Register
Shows the savings of members and that of the group as a whole
separately. Details of individual loans, repayments, interest collected,
balance etc. are entered here.
Weekly/Fortnightly/Monthly Register
Summary of receipts and Payments, updated in every meeting.
~ 18 ~
Members Pass books
Individual member’s pass books in which individual’s savings and
loan Balance outstanding is regularly entered.
Major functions of an SHG
Savings and Thrift
All SHG members regularly save a small amount. The amount
may be small, but savings have to be regular and continuous habit
with all the members.
“Savings first-Credit later” should be the motto of every SHG
member.
SHG members take a step towards self-dependence when they
start small savings. They learn financial discipline through savings
and internal lending. This is useful when they use bank loans.
Internal lending
The SHG should use the savings amount for giving loans to
members.
The purpose, amounts, rate of interest, schedule of repayment
etc. are to be decided by the group itself.
~ 19 ~
Proper accounts to be kept by the SHG.
Discussing problems
In every meeting, the SHG should be encouraged to discuss and
try to find solutions to the problems faced by the members of the group.
Individually, the poor people are weak and lack resources to solve their
problems. When the group tries to help its members, it become easier for
them to face the difficulties and come up with solutions.
Planning
The SHG should prepare plans for the future so that each member
can collectively work for the achievement of the same. It should plan to get
financial support from Government, Bank and NGO for its sustainability. It
can take up some development programmes in the locality and all the
members should involve themselves in implementation and monitoring of
the programmes.
Working of SHGs
SHGs are working in democratic manner. The upper limit of
members in a group is restricted to 20. Among them a member is selected as
an ‘animator’ and two members are selected as the representatives. The
~ 20 ~
animator is selected for the period of two years. The group members meet
every week. They discuss about the group savings, rotation of sangha funds,
bank loan, repayment of loan, social and community action programmes.
Significance of SHGs
SHGs are necessary to overcome exploitation, create confidence
for economic self reliance in the poor, particularly to women who are mostly
invisible in the social structure. The SHGs become the basis for action and
change and build a relationship of mutual trust between the promoting
organization and the rural poor through constant contact and genuine efforts.
Credit delivery through thrift and credit groups (SHGs) emerges as an
alternative to the existing system of credit disbursement by the banks. SHGs
have been found to help inculcate among their members sound habit of
thrift, saving and banking.
Self-help approach is fast gaining acceptance internationally as the
most appropriate instrument to reach out to the poorest of the poor in a most
effective way. Experience in various countries has brought to light the fact
that SHGs play a significant role in mobilizing substantial amounts of
saving and providing loans to the members. SHGs have also been able to
~ 21 ~
bring about positive improvement in a number of social indicators such as
literacy and health.
SHGs promote participatory credit management and fill a vacuum
created by the ineffective, rigid formal credit necessity of adopting a flexible
mechanism sensitive to the needs and conditions of the people for whom
these are meant. Rescheduling of loans in times of genuine hardships,
recognizing the consumption requirements of the people along with their
production needs and the need to address social problems are all considered.
The benefits of SHGs
The benefits of SHGs that have primarily been formed in India as
micro –credit groups for economic empowerment of women and the weaker
sections are that they provide a via media for development of resource,
provide a window for better technology and skill up gradation, have access
to various promotion assistance and assurance to freedom, self reliance and
empowerment. Collectivization implies cohesion of the group and enables
the members of the group to perceive common interests and act collectively.
In contrast to formal organizations, self – help is highly personal, non-
hierarchical and without division of labor. Self help favors experience over
expertise.~ 22 ~
Women empowering activities through SHGs
Overcoming the resistance from husband and other members of
the family to join the SHG.
Increased participation in decision-making within the
household to issues that were usually considered outside the domain
of woman.
Improved status and increase in respect within the household.
Feeling fearless, open and confident.
All group members learn to sign their names and some have
joined adult literacy programmes.
Adopting family planning measures.
More mobile, can move out of the house and the village more
frequently.
Talking to the male persons in their village, which they were
not confident to do before because of cultural reasons.
They have more information about the government programmes
due to their exposure and can apply for them for their own betterment
and the benefit of the community.
~ 23 ~
Actively participating in the decision to send their children to
school.
Eradication of prostitution.
Some women can actively engage in the decision of their
marriage with the elders in her household.
Awareness about politics and engaged in political participation
by way of voting or directly, by standing as a candidate in the local
elections.
Impact of SHGs
Impact of SHGs pointed out several positive benefits to SHG
members and their families and the community as whole. However,
predominant benefits are economic benefits besides other benefits as
follows:
Members and their families dependence on money lenders has
declined significantly.
Members have developed a habit of saving.
Members are able to even out the fluctuations in their
consumption and are able meet to emergencies without jeopardizing
their future economic security.
~ 24 ~
SHG members are able to invest more on income generating
activities (IGA) and asset creation compared to non-members.
SHG members have increased the expenditure on food,
children education and health needs.
Members’ risk bearing capacity has increased.
Members’ and their families’ income levels have increased
significantly after joining in SHGs.
More SHGs members are taking part in decision making at the
family level compared to non-members.
Through SHG banking program, the poor and marginal sections
are able to access banking and other financial services.
SHG program is showing positive discrimination towards
women and weaker sections and backward and remote areas.
Limitations of SHGs
~ 25 ~
Though the SHGs become credible and effective partners to many,
they themselves are facing a number of constraints and challenges. These
include:
Uneven spread of the SHGs across the country.
Inability to take up livelihood promotion.
Inability to take up larger issues of gender and social inequality
and women empowerment, etc.,
Limitations of promoters to provide capacity building and other
necessary inputs at a desired scale.
Inability of banks to understand and accommodate the needs of
the SHGs in some parts of the country, especially in under serviced
regions.
Financial assistances given to SHGs
~ 26 ~
Mahalir thittam
The programme is implemented in partnership with NGOs and
community based organizations which are affiliated with TNCDW after due
process. Under Mahalir Thittam 3,65,709 SHGs have been formed as of
March 2008 with 58,80,875 women members and with total savings of
Rs.1,737.81 crores. This includes 25,484 new SHGs formed in 2007-08 of
which 9,999 SHGs have been formed in Anaithu Grama Anna Marumalarchi
Thittam villages.
The hallmark of the SHGs promoted by Mahalir Thittam is the
systematic training provided to the SHG members and the office bearers.
This capacity building brings about qualitative changes in the attitude of the
women and promotes cohesion and effective functioning of the group.
~ 27 ~
Mahalir ThittamOf SHG Women
By SHG Women
For SHG Women
All the SHG members are imparted training in 4 modules for 4
days to orient them to the SHG concept. The office bearers of the SHGs
(Animator and Representative) are given training in 3 modules for 6 days.
This training enhances the leadership quality, team building spirit and
capacity to maintain books of accounts. In addition, SHG members who are
interested in starting economic activities or develop skills to get self
employment are provided skill training. The skill training includes a 5 day
capsule on entrepreneurial development.
Some the important projects and schemes under Mahalir Thittam are:-
IFAD assisted TN Women Development Project
Bangaru Ammaiyaar Ninaivu Mahalir Thittam
Entrepreneurship Development Programme
Vocational & Skill Development Programmes
SHG federation
The dictionary meaning of federation is "Association of autonomous bodies
uniting for a common perceived benefits". "an association of autonomous bodies
united for common perceived benefits" (FWWB, 1998).
~ 28 ~
A federation is an association of primary organizations. Primary
organizations may federate to realize economies of scale or to gain strength as an
interest group. Federations of cooperatives have a long history. (Nair 2002).
A Cluster Level Federation is a network of several SHGs and a structure or
body evolved by SHGs themselves consisting of representatives from all member
SHGs, with a motive of supporting member-SHGs attain the goals of economic
and social empowerment of women members and their capacity building.
(TNCDW, 1999)
In other words, it is an another forum for SHGs to step up development of
women members taking advantage of collective effort of members SHGs, enabling
a holistic and need based economic and social development. A SHG Federation is
a democratic body formed with certain number of SHGs functioning in a specific
geographical area with the objective of uniting such SHGs for common cause and
for achieving these causes which an individual SHG would not be able to do. In
short, the SHG Federation has to be necessarily of SHGs, by SHGs and for SHGs.
Objectives & activities of SHG Federations
Federations are set up with one or more of the following objectives:
To get access to policy making bodies through political
empowerment and social mobility.
~ 29 ~
To facilitate linkages between SHGs and banks/govt.
agencies/local institutions.
To have better access to development information and
marketing linkages.
To resolve any conflicts that may arise within member SHGs.
To assist in strengthening the performance of member SHGs.
To help in achieving sustainability of SHG.
To strengthen (through training, information dissemination, on-
site support, etc) the capacity of member-SHGs in one or more of a
variety of fields (bookkeeping, accounting, marketing, financial
management, advocacy, bank-linkage, accessing government
schemes, to name some).
To provide credit, especially multiple credit lines.
To provide savings facilities, especially voluntary savings.
To undertake marketing of the products of the members of the
SHGs.
To provide life/loan insurance services.
To provide staff support to member-SHGs.
To write and/or audit the accounts of member-SHGs.
To review/regulate/supervise the functioning of member-SHGs.
~ 30 ~
To promote new SHGs.
To create the political/social space that women need to live
their lives as fully as they desire to be the window to the outside
world, in replacement of the promoter organization .
To undertake all that the external facilitator was undertaking,
after its departure.
Revolving fund to Urban SHGs
After the groups in rural areas pass the first credit rating,
Revolving Fund (RF) subsidy of Rs.10,000/- is provided under
Swarnajayanti Gram Swarozgar Yojana (SGSY) to facilitate credit linkage
with the Banks. In addition to the subsidy given by the Government, the
Banks provide cash credit up to Rs.30,000/- per group. The RF subsidy was
not available to SHGs in urban areas which restricted their access to credit
from Banks. Therefore the Government announced a scheme to provide RF
subsidy to urban groups from the year 2006-07. Rs.30 crores have already
been provided to give RF subsidy to 30,000 urban SHGs. In 2008-09, the
Government have decided to provide RF subsidy to all the eligible 1.50 lakh
SHGs. The Government have earmarked Rs.150 Crores for this purpose.
~ 31 ~
SHG - bank linkage
Defaulting and Competition Among the Microfinance Institutions
and its Implications(2006) in the year 1992 National Agricultural Bank for
Rural Development (NABARD) has started SHG-Bank Linkage Programme
with the objective of eradicating poverty through improving access to formal
institutional finance for SHGs. As on March 2003 NABARD has linked
7,17,360 groups disbursed an amount of Rs. 20,487 millions. These services
and goods have been delivered through 30,942 branches of commercial,
regional rural banks and cooperatives.
It is now a decade since the National Bank for Agriculture and
Rural Development (NABARD) piloted the SHG-bank Linkage Programme
to provide poor rural households access to banking services. The programme
has grown in an exponential manner. While NGOs have taken the lead in
forming SHGs, a variety of financial service promoters and intermediaries,
official and non-official, are currently associated with the programme.
Further, several central government ministries and state governments have
launched projects and schemes involving the organisation of savings and
credit groups, usually of poor women, often as part of programmes
supported by bilateral and multilateral agency funding. Indeed, SHGs are
currently seen as an essential and integral part not only of financial services
~ 32 ~
delivery, but also as a channel for the delivery of non-financial services
within larger objectives of livelihoods promotion, community development
and women’s empowerment.
Swarna Jayanti Gram Swarozgar Yojana (SGSY)
SGSY is being implemented since April 1999 as a major anti-
poverty scheme for the rural poor, by organizing them into Self Help Groups
(SHGs), providing them with skill development training and helping them to
get credit linkage with financial institutions and providing infrastructure and
marketing support for the products produced by them. Government of India
and the State Government are sharing the costs in the ratio of 75:25.
The Self-Employed Women's Association (SEWA)
It is an Ahmedabad-based union of women workers established in
1972. Backed by more than 220,000 association members and has set up 16
organizations, including the SEWA bank has organized to fight poverty
through full employment and self-reliance, SEWA workers demand the right
to work for food, income, and social security. Since its creation, SEWA has
fought to gain the recognition of home-based and outside workers' legitimate
rights. However, it was realized during the course of such struggle that ~ 33 ~
struggle alone could not fulfill the demands, needs, and priorities of
workers. There was also a need to create alternative economic organizations
of workers in terms of access to capital, markets, raw materials, and
knowledge and skills; building organizational and managerial capacities;
upgrading skills through training; social security; and enabling policies. The
joint action of union and cooperatives has therefore been SEWA's
organizing strategy for all these decades.
HLL’s Project Shakti
Through a combination of micro-credit and training in enterprise
management, these women from SHGs have turned direct-to-home
distributors of a range of HLL products and helping the company plump
hitherto unexplored rural hinterlands. Project Shakti was piloted in Nalgonda
district in 2001. The ambitious vision of this project is to create by 2010
about 11000 shakti entrepreneurs covering one lakh villages and touching
the lives of 100 million rural consumers. On an average the shakti
entrepreneur is earning a return of 8%. To get started the shakti women
borrows from her SHG and the company itself chooses only one person.
With training and hand-holding by the company for the first three months,
~ 34 ~
she begins her door-to-door journey selling her wares. One of the plans of
HLL is to allow other companies which do not compete with HLL to get
onto the shakti network to sell their products. Talks are on with companies
like Nippo, TVS Motors, and Insurance companies. HLL also operates I-
Shakti an IT-based rural information service that will provide solutions to
key rural needs in the areas of agriculture, education, vocational training,
health and hygiene.
Gangai Vattara Kalanjia Mutuals
It is a mutual trust, aims at providing social security services to the
poor in rural areas. It draws inspiration from the Mutual Insurance
Association of Netherlands (MIAN). A unique feature of the insurance cover
is that all claims are settled within hours, sans much of the paper work.
As a new venture, SHG members are entering the arena of health, especially
in identifying hearing impaired persons by joining hands with project shakti
of HLL and affordable hearing aid project centre. SHGs took an important
step towards financial independence by attending 12 day training
programme on setting up information kiosks. After training the women on
basic computing skills besides operating photocopiers and fax machines, ~ 35 ~
Tamil Nadu Corporation for Development of women (TNCDW) will offer
financial assistance to the women. The special schemes from government
and financial institutions to assist women in creating enterprises and the
conducive platform provided by the X plan by virtue of its thrust on
women’s social and economic empowerment and gender justice.
The Working Women's Forum (WWF)
It is established in Madras in 1978, has brought together over
13,000 poor urban women around the issue of credit. Most women who live
in the slums of Madras work as small-scale traders and vendors, their
earnings often providing over half the family income. The WWF was set up
to enable these women to obtain low interest loans to expand their
businesses. The key element in the WWF structure is the neighborhood loan
group, comprised of 10-20 women from the same area who act as mutual
guarantors for the loans of all group members. The WWF is expanding its
activities to address the political and social problems of working women as
well. The Forum operates day care centers, skills training centers, and
remedial classes for school children.
~ 36 ~
Manimegalai Awards
To encourage well-functioning SHGs and PLFs, the Government
had announced Manimegalai awards at State and district levels. Awards are
presented to 5 best PLFs and 10 best SHGs at the State level. One PLF
selected as best at the district level and 3 SHGs found to be the best at the
district level are given Manimegalai awards and the best SHG at the Block
level is given a certificate.
Issue of identity cards to SHGs
Hon’ble Minister for Rural Development and Local Administration
had announced that Identity (ID) cards will be issued to Mahalir Thittam
SHGs. The ID cards will help SHGs to gain recognition in society and also
have easy access to Government offices and Banks. The ID card will
contain group details such as savings, credit rating status, loans as well as
member details. Issue of ID cards has been taken up in 4 Blocks on a pilot
basis and will be extended to the entire State in 2008-09.
SBI Life ‘Shakti’
~ 37 ~
SBI Life Insurance Company (SBI Life) introduced in March,
2002, for the first time in the country, a group life insurance scheme (Super
Suraksha) under which all account holders of banks are offered life
insurance under a pure term insurance cover with no refund of premium on
survival. SBI Life has now introduced another innovative product for the
most vulnerable section of the population, a unique insurance scheme
especially designed for the self help groups.
Every SHG has a maximum of 20 members, usually 10-15
members each. The proportion of women SHGs is predominant with about
85% of the total membership. The composition of an SHG may change from
time to time due to any member exiting to pursue individual vocations, no
new members being inducted. The maximum number of members is,
however, limited to 20. Considering the basic purpose of Self Help groups
(SHGs) as promoting the habit of thrift and saving among the members, the
new group insurance scheme exclusively for SHGs, called ‘SHAKTI’,
extends life insurance cover facility to SHG members with a special feature,
i.e., refund of the entire life insurance premium amount paid if the SHG
member survives at the end of a 10 year period.
~ 38 ~
Mutram monthly magazine
An in-house Tamil News letter that reaches out to every Self Help
Group, Mutram has played a vital role in communicating experiences shared
by various successful SHGs. It has also helped in disseminating Government
policy information and Mahalir Thittam messages to both field workers,
SHGs and project staff.
Mutram is supported by subscriptions from SHGs, contributors
from UNICEF, NABARD, Tamil Nadu AIDS control society(TANSACS)
and the state government. The news letter, which has completed nearly 3
years of active communication, is published by MUTRAM Society
registered under Registration of Societies Act as Tamil Nadu Membattu
Mutram. It is printed at Dew press Sivakasi.
In order to assess the effectiveness of Mutram, a workshop was
conducted with participation of BLCC secretaries(SHG representatives)
from Pudukottai and Villupuram. The workshop has generated ideas for
improving the quality, outreach and readership of Mutram. The evaluation
report prepared by State Resource Center (SRC), Chennai was presented by
SRC representatives.
~ 39 ~
Aishwariam Social Welfare Organization and resource training centre (ASWO)
ASWO is development resource centre established for the
upliftment of youth of vulnerable sections. It was formed by a set of
dedicated social workers in 30th Aug 2006 and registered under the Tamil
Nadu Societies Registration Act of 1975. ASWO is located in 45, Kannappa
Gounder Street, Rathnapuri, Coimbatore Corporation Town, Coimbatore –
641 027, Tamil Nadu. Operational Areas are Coimbatore, Tirupur, Erode,
Nilgirs District.
Objective
The empowerment of vulnerable women and children in the
context of social, economical, health and environment.
To give capacity building training to Social Work Students on
counseling and Animator / Representative for SHG members on
ledger maintaining and account keeping.
EDP training for SHG members to improve their economical
status.
A training on ‘Health Education’ was given to SHG, around 35
people took part.
~ 40 ~
Profile of the study area and self help groups
Coimbatore District
Coimbatore district formed part of the Kongu country, the history
of which dates back to the Sangam age. It is found that in early days the area
was inhabited by tribes, the most predominant among them being the Kosars
who are reported to have had their headquarters at Kosampathur which ~ 41 ~
probably later became the present Coimbatore. The third largest city of the
state, Coimbatore,is one of the most industrialized cities in Tamil Nadu,
known as the textile capital of South India or the Manchester of the South,
the city is situated on the banks of the river Noyyal, in the rain shadow
region of the Western ghats, Coimbatore enjoys a very pleasant climate all
the year round, aided by the fresh breeze that flows through the 25 kms long
Palakkad gap.
The rich black soil of the region has contributed to Coimbatore's
flourishing agriculture industry and it is in fact the successful growth of
cotton that served as a foundation for the establishment of its famous textile
industry. There are more than 25,000 small, medium, large sale industries
and textile mill. Coimbatore is also famous for the manufacture of motor
pump sets and varied engineering goods. The development of Hydro
electricity from the Pykara Falls in the 1930 led to a cotton boom in
Coimbatore.
Major type of Industries located in Coimbatore include Textile
Mills, Power looms, Handlooms, Hosiery Units, Motor, Pumps and Foundry
Units, Wet grinder and accessories Units, Coir Industries,
Textile/Automobile Machinery / Engineering Industries. Coimbatore is
developing as Tier II City in respect of IT Sector. Coimbatore serves as an ~ 42 ~
entry and exit point to neighbouring Kerala and the ever popular hill station
of Udhagamandalam (Ooty). It is the disembarking point for those who want
to take the Mountain train that runs from Mettupalayam, just 35 kms from
Coimbatore. Coimbatore district is one of the districts in Tamil Nadu. It is
divided into two Revenue Divisions and six Taluks consisting of 12 blocks,
12 corporation & Municipalities, 52 Town panchayats, 295 Revenue
villages, 389 Panchayat villages.
Study Area
~ 43 ~
~ 44 ~
Study Area is Kondampalayam village belong to Sarcarsamakulam block.
There are nearly 50 SHGs. From that 10 Women SHGs are randomly
selected.
Details about the Self Help Groups
I. Malligai Self Help Group
Name of the SHG : Malligai
Total members : 12
Date of Establishment : 22.12.2008
Name of the bank : Canara bank
Initial contribution made
by members : Rs.50
Members monthly savings : Rs.75
Does the group have any
conduct with NGO : Yes
Are all the members Insured : No
Rate of interest for loans : 12%
Any specific business is Undergone
by the group Members altogether : No
~ 45 ~
II. Poonthendral Self Help Group
Name of the SHG : Poonthendral
Total members : 12
Date of Establishment : 29.12.2008
Name of the bank : Canara bank
Initial contribution made
by members : Rs.50
Members monthly savings : Rs.100
Does the group have any
conduct with NGO : Yes
Are all the members Insured : No
Rate of interest for loans : 12%
Any specific business is Undergone
by the group Members altogether : No
III Sabari Self Help Group
Name of the SHG : Sabari
Total members : 13
Date of Establishment : 8.12.2008
Name of the bank : Canara bank
~ 46 ~
Initial contribution made
by members : Rs.50
Members monthly savings : Rs.50
Does the group have any
conduct with NGO : Yes
Are all the members Insured : No
Rate of interest for loans : 12%
Any specific business is Undergone
by the group Members altogether : No
IV Subam Self Help Group
Name of the SHG : Subam
Total members : 12
Date of Establishment : 12.11.2008
Name of the bank : Canara bank
Initial contribution made
by members : Rs.50
Members monthly savings : Rs.150
Does the group have any
conduct with NGO : Yes
~ 47 ~
Are all the members Insured : No
Rate of interest for loans : 12%
Any specific business is Undergone
by the group Members altogether :Yes, Milk business
V. Valarpirai Self Help Group
Name of the SHG : Valarpirai
Total members : 13
Date of Establishment : 22.12.2008
Name of the bank : Canara bank
Initial contribution made
by members : Rs.50
Members monthly savings : Rs.50
Does the group have any
conduct with NGO : Yes
Are all the members Insured : No
Rate of interest for loans : 12%
Any specific business is Undergone
by the group Members altogether : No
~ 48 ~
VI Sairam Self Help Group
Name of the SHG : Sairam
Total members : 13
Date of Establishment : 27.12.2009
Name of the bank : Canara bank
Initial contribution made
by members : Rs.50
Members monthly savings : Rs.100
Does the group have any
conduct with NGO : Yes
Are all the members Insured : No
Rate of interest for loans : 12%
Any specific business is Undergone
by the group Members altogether : No
VII Magarantham Self Help Group
Name of the SHG : Magarantham
Total members : 13
Date of Establishment : 30.1.2009
Name of the bank : Canara bank
~ 49 ~
Initial contribution made
by members : Rs.50
Members monthly savings : Rs.200
Does the group have any
conduct with NGO : Yes
Are all the members Insured : No
Rate of interest for loans : 12%
Any specific business is Undergone
by the group Members altogether :Yes, Mess business
VIII Abdul Kalam Self Help Group
Name of the SHG : Abdul Kalam
Total members : 12
Date of Establishment : 20.02.2009
Name of the bank : Canara bank
Initial contribution made
by members : Rs.50
Members monthly savings : Rs.75
Does the group have any
conduct with NGO : Yes
~ 50 ~
Are all the members Insured : No
Rate of interest for loans : 12%
Any specific business is Undergone
by the group Members altogether : No
IX Vidivelli Self Help Group
Name of the SHG : Vidivelli
Total members : 12
Date of Establishment : 30.01.2009
Name of the bank : Canara bank
Initial contribution made
by members : Rs.50
Members monthly savings : Rs.125
Does the group have any
conduct with NGO : Yes
Are all the members Insured : No
Rate of interest for loans : 12%
Any specific business is Undergone
by the group Members altogether : No
~ 51 ~
X Success Self Help Group
Name of the SHG : Success
Total members : 13
Date of Establishment : 30.1.2009
Name of the bank : Canara bank
Initial contribution made
by members : Rs.50
Members monthly savings : Rs.100
Does the group have any
conduct with NGO : Yes
Are all the members Insured : No
Rate of interest for loans : 12%
Any specific business is Undergone
by the group Members altogether : Yes, Masala
powder business
~ 52 ~
Analysis and Interpretation of data
SHG women are shaping community life, like planning to form a
SHG of women at the village level. And as women generally make choices
which are beneficial to families, this is indeed a welcome change. Its impact
will be felt at the village level and on the quality, the terms of social
empowerment of women, empowerment of their families through higher
incomes and better choices and finally in the betterment of community life.
~ 53 ~
TABLE NO: 4.1
AGE - WISE CLASSIFICATION
S.NO. AGE NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
20-30
30-40
40 & above
20
71
34
16
56.8
27.2
TOTAL 125 100
Source : Primary data
The above table 4.1 shows the agewise classification of the
respondents. 56.8% are in the age group of 30-40. 27.2% are in the age
group of 40 & above. 16% are in the age group of 20-30.
~ 54 ~
20-30 30-40 40 & above0
10
20
30
40
50
60
16
56.8
27.2
PERCENTAGE
AGE
PERCEN
TAGE
~ 55 ~
TABLE 4.2
EDUCATIONAL DISTRIBUTION OF RESPONDENTS
S.NO. EDUCATIONAL STATUS
NO. OF RESPONDENTS
PERCENTATGE
(%)
1.
2.
3.
4.
5.
Illiterate
Elementary Education
High school education
Higher secondary
education
Graduation
13
33
27
37
15
10.4
26.4
21.6
29.6
12
TOTAL 125 100
Source : Primary data
The above table 4.2 shows the educational distribution of
respondents. 4/5 of the respondents are literate and the rest of them are
illiterate(10.4%).
~ 56 ~
Illiterate10%
Elementary Edu-cation26%
High school education22%
Higher secondary education
30%
Graduation12%
~ 57 ~
TABLE 4.3
MARITAL STATUS OF THE RESPONDENTS
S.NO. MARITAL STATUS
NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
4.
Married
Unmarried
Widow
Others
65
35
11
14
52
28
8.8
11.2
TOTAL 125 100
Source : Primary data
The above table 4.3 shows the marital status of the respondents.
52% of the respondents are married. 28% of the respondents are unmarried.
11.2% of the respondents are others and 8.8% of the respondents are widow.
~ 58 ~
Married Unmarried Widow Others0
10
20
30
40
50
60
52
28
8.8 11.2
MARITAL STATUS
PERC
ENTA
GE
~ 59 ~
TABLE 4.4
ANNUAL INCOME DISTRIBUTION OF THE RESPONDENTS
S.NO. ANNUAL INCOME
NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
25000-35000
35000-45000
45000 & Above
40
51
34
32
40.8
27.2
TOTAL 125 100
Source : Primary data
The above table 4.4 shows the annual income distribution of the
respondents. 40.8% of the respondents earn income between 25000 –
35000. 32% of the respondents earn income between 35000 – 45000. 27.2%
of the respondents earn income above 45000.
~ 60 ~
25000-35000 35000-45000 45000 & above0
5
10
15
20
25
30
35
40
45
32
40.8
27.2
ANNUAL INCOME
PERCEN
TAGE
~ 61 ~
TABLE 4.5
KNOWLEDGE TO JOIN IN SHGs
S.NO. HELPED BY PERSONS
NO. OF RESPONDENTS
PERCENTAGE (%)
1.
2.
3.
4.
Voluntarily
NGO
Relatives
Other women
45
29
18
33
36
23.2
14.4
26.4
TOTAL 125 100
Source : Primary data
The above table 4.5 shows that nearly 36% of the respondents
have become the members of SHGs voluntarily. 26.4% of the respondents
become the members through other women. 23.2% of the respondents
become the members through NGO and 14.4% of the respondents become
the members through relatives.
~ 62 ~
36%
23%
14%
26%
Voluntarily NGO Relatives Other women
~ 63 ~
TABLE 4.6
REASONS FOR JOINING IN SHGs
S.NO. REASONS NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
4.
Poverty
To empower
Commence new business
To improve the business
36
40
29
20
28.8
32
23.2
16
TOTAL 125 100
Source : Primary data
The above table 4.6 shows the reasons for joining in SHGs. 32%
of the respondents join in SHGs due to poverty. 28.8% of the respondents
join to empower themselves. 23.2% of the respondents join to commence
new business. 16% of the respondents join to improve their business.
~ 64 ~
Poverty To empower Commence new business
To improve the business
0
5
10
15
20
25
30
35
28.8
32
23.2
16
REASONS
PERCEN
TAGE
~ 65 ~
TABLE 4.7
FAMILY MEMBER’S RESPONSE
S.NO. OPTION NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
Allowed
Not allowed
58
67
46.4
53.6
TOTAL 125 100
Source : Primary data
The above table 4.7 shows the respondent’s family members
response to join in SHGSs. 46.4% of the respondent’s family members
allowed them to join and 53.6% of the respondent’s family members not
allowed them to join in SHGs.
~ 66 ~
Allowed Not allowed42
44
46
48
50
52
54
56
46.4
53.6
OPTION
PERCEN
TAGE
~ 67 ~
TABLE 4.8
OCCUPATIONAL STATUS OF THE RESPONDENTS
S.NO. OCCUPATION NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
4.
House wife
Business
Agri coolie
Others
43
35
28
19
34.4
28
22.4
15.2
TOTAL 125 100
Source : Primary data
The above table 4.8 shows the occupational status of the
respondents. 34.4% of the respondents are House wife. 28% of the
respondents are doing business. 22.4% of the respondents are agri coolie
and 15.2% of the respondents are doing other works.
~ 68 ~
34%
28%
22%
15%
House wife Business Agri coolie Others
~ 69 ~
TABLE 4.9
PROCEDURE OF THE BANKS IN SANCTIONING LOAN
S.NO. PROCEDURE NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
Simple & quick
Not simple & quick
45
80
36
64
TOTAL 125 100
Source : Primary data
The above 4.9 shows the procedure of the banks in sanctioning loan
to SHG. 64% of the respondents says that the procedure of the banks in
sanctioning loan is not simple and quick. 36% of the respondents says that
the procedure of the banks in sanctioning loan is simple and quick.
~ 70 ~
Simple & quick Not simple & quick
010203040506070
36
64
PROCEDURE
PERCEN
TAGE
~ 71 ~
TABLE 4.10
BORROWING STATUS OF THE RESPONDENTS
S.NO. BORROWING STATUS
NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
Yes
No
90
35
72
28
TOTAL 125 100
Source : Primary data
The above table 4.10 shows the borrowing status of the
respondents. 72% of the respondents borrowed money and 28% of the
respondents did not borrow money.
~ 72 ~
Yes
No
0 10 20 30 40 50 60 70 80
72
28
PERCENTAGE
BORRO
WING S
TATUS
~ 73 ~
TABLE 4.10.1
PLACES FROM WHERE RESPONDENTS
BORROW MONEY
S.NO. PLACE NO. OF RESPONDENTS
PERCENTAGE
1.
2.
3.
4.
Chit fund
Bank
Friends & relatives
Private lenders
19
9
23
39
21.11
10
25.56
43.33
TOTAL 90 100
Source : Primary data
The above table 4.10.1 shows the places from where the
respondents borrow money. 43.33% of the respondents borrow money from
private lenders. 25.56% of the respondents borrow money from friends and
relatives. 21.11% of the respondents borrow money from chit funds and 10%
of the respondents borrow money from bank.
~ 74 ~
Chit fund
Bank
Friends &
relat..
.
Private
lenders
0
5
10
15
20
25
30
35
40
45
21.11
10
25.56
43.33
PLACE
PERCEN
TAGE
~ 75 ~
TABLE 4.11
LOAN REPAYMENT MODE OF RESPONDENTS
S.NO. REPAYMENT MODE NO. OF RESPONDENTS
PERCENTAGE
1.
2.
Regular Intervals
Irregular Intervals
58
67
46.4
53.6
TOTAL 125 100
Source : Primary data
The above table 4.11 shows the loan repayment mode of
respondents. 53.6% of the respondents pay the loan in irregular intervals and
46.4% of the respondents pay the loan in regular intervals.
~ 76 ~
Regular in-tervals
Irregular intervals
42
44
46
48
50
52
54
46.4
53.6
REPAYMENT MODE
PERCEN
TAGE
~ 77 ~
TABLE 4.11.1
REASONS FOR NOT PAYING LOANS REGULARLY
S.NO. REASONS NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
4.
Low income
High interest rate
Family problems
Others
25
19
14
9
37.31
28.36
20.9
13.43
TOTAL 67 100
Source : Primary data
The above table 4.11.1shows the reasons for not paying loans
regularly by the respondents. 37.31% of the respondents do not pay the
loans regularly due to their low income. 28.36% of the respondents do not
pay the loans regularly due to high interest rate. 20.9% of the respondents do
not pay the loans regularly due to family problems and 13.43% of the
respondents do not pay the loans regularly due to other problems.
~ 78 ~
37%
28% 21%
13%
~ 79 ~
TABLE 4.12
PURPOSE-WISE CREDIT DEMANDED
BY SHG MEMBERS
S.NO. PURPOSE NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
4.
Production
Consumption
Functions
Emergency
22
47
23
33
17.6
37.6
18.4
26.4
TOTAL 125 100
Source : Primary data
The above table 4.12 shows the purpose for which the respondents
get loan. 37.6% of the respondents get the loan for consumption purpose.
26.4% of the respondents get the loan for emergency purpose. 18.4% of the
respondents get the loan for functions and 17.6% of the respondents get the
loan for production.
~ 80 ~
ProductionConsumption
FunctionsEmergency
0
5
10
15
20
25
30
35
40
17.6
37.6
18.426.4
PURPOSE
PERC
ENTA
GE
~ 81 ~
TABLE 4.13
LOAN REPAYMENT MODE AFTER JOINING IN SHGs
S.NO. REPAYMENT MODE NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
Regular intervals
Irregular intervals
77
48
61.6
38.4
TOTAL 125 100
Source : Primary data
The above table 4.13 shows the loan repayment mode of the
respondents after joining in SHGs. 61.6% of the respondents pay the loan in
regular intervals and 38.4% of the respondents pay the loan in irregular
intervals.
~ 82 ~
Regular intervals
Irregular intervals
0 10 20 30 40 50 60 70
61.6
38.4
PERCENTAGE
REPA
YMEN
T MOD
E
~ 83 ~
TABLE 4.13.1
REASONS FOR PAYING LOANS REGULARLY
S.NO. REASONS NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
Improved income
Low interest rate
others
37
26
14
29.6
20.8
11.2
TOTAL 77 100
Source : Primary data
The above table 4.13.1shows that 29.6% of the respondents pay
their loan in regular intervals due to improved income. 20.8% of the
respondents pay their loan in regular intervals due to low interest rate. 11.2%
of the respondents pay their loan in regular intervals due to other reasons.
~ 84 ~
48%
34%
18%
Improved income Low interest rate Others
~ 85 ~
TABLE 4.14
SAVING HABIT OF THE RESPONDENTS
S.NO. SAVING HABIT NO. OF RESPONDENTS
PERCENTAGE
1.
2.
YES
NO
89
36
71.2
28.8
TOTAL 125 100
Source : Primary data
The above table 4.14 shows the saving habit of the respondents
after joining in SHGs. 71.2% of the respondents started saving habit and
28.8% of the respondents did not have the saving habit.
~ 86 ~
Yes No0
10
20
30
40
50
60
70
80
P...
SAVING HABIT
PERCEN
TAGE
~ 87 ~
TABLE 4.14.1
PLACES WHERE SAVINGS ARE INVESTED
S.NO PLACES NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
4.
5.
Chit funds
Post office
Bank
LIC
Others
19
30
23
10
7
21.35
33.7
25.84
11.24
07.87
TOTAL 89 100
Source : Primary data
The above table 4.14.1 shows the places where savings of the
respondents are invested. 33.7% of the respondents invest in post office.
25.84% of the respondents invest in bank. 21.35% of the respondents invest
in chit funds. 11.24% of the respondents invest in LIC. 7.87% of the
respondents invest in others.
~ 88 ~
Chit funds Post office Bank LIC Others
0
5
10
15
20
25
30
35
21.35
33.7
25.84
11.24
7.87
PLACES
PERCEN
TAGE
~ 89 ~
TABLE 4.15
ACTIVITIES INVOLVED FOR DEVELOPMENT
OF VILLAGE
S.NO. ACTIVITIES NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
4.
5.
Physical help
Financial help
Through SHG
Others
NIL
24
15
33
10
43
19.2
12
26.4
8
34.4
TOTAL 125 100
Source : Primary data
The above table 4.15 shows the activities involved by the
respondents for the development of their village. 34.4% of the respondents
did not involve in any activities. 26.4% of the respondents help through
SHG. 19.2% of the respondents provide physical help. 12% of the
respondents provide financial help and 8% of the respondents provide help
through other ways.
~ 90 ~
Physical help
Financial help
Through SHG
Others
NIL
0 5 10 15 20 25 30 35 40
19.2
12
26.4
8
34.4
PERCENTAGE
ACTIV
ITIES
~ 91 ~
TABLE 4.16
PARTICIPATION IN THE VILLAGE PROGRAMMES
S.NO. PROGRAMMES NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
4.
5.
Social awareness
Cultural programs
Political events
Others
NIL
27
34
11
10
43
21.6
27.2
8.8
8
34.4
TOTAL 125 100
Source : Primary data
The above table 4.16 shows participation of the respondents in the
village programs. 34.40% of the respondents do not participate in any
programs. 27.2% of the respondents participate in cultural programs. 21.6%
of the respondents participate in social awareness programs. 8.8% of the
respondents participate in political events and 8% of the respondents
participate in other programs.
~ 92 ~
Social awareness Cultural
programsPolitical events
Others
NIL
01020304021.6 27.2
8.8
8
34.4
PROGRAMMES
PERCEN
TAGE
~ 93 ~
TABLE 4.17
RESPONDENTS MEETING WITHIN THE GROUP
S.NO. TIME GAP OF MEETING
NO. OF RESPONDENTS
PERCENTAGE
1.
2.
3.
Once in a week
Once in 15 days
Once in a month
60
48
17
48
38.4
13.6
TOTAL 125 100
Source : Primary data
The above table 4.17 shows the respondents meeting within the
group. 48% of the respondent’s conduct the meeting once in a week. 38.4%
of the respondent’s conduct the meeting once in 15days. 13.6% of the
respondent’s conduct the meeting once in a month.
~ 94 ~
48
38.4
13.6
Once in a week Once in 15 days Once in a month
~ 95 ~
TABLE 4.18
RESPONDENTS DOING BUSINESS
S.NO. OPTION NO. OF RESPONDENTS
PERCENTAGE
1.
2.
YES
NO
70
55
66
44
TOTAL 125 100
Source : Primary data
The above table 4.18 shows the respondents doing business before
joining in SHG. 66% of the respondents are doing business and 44% of the
respondents are not doing business.
~ 96 ~
Yes
No
0 10 20 30 40 50 60 70
66
44
PERCENTAGE
OPTIO
N
~ 97 ~
TABLE 4.18.1
PROBLEMS FACED IN DOING BUSINESS
S.NO. PROBLEMS NO. OF RESPONDENTS
PERCENTAGE
1.
2.
3.
4.
Financial problem
Marketing
Training
Others
27
18
19
6
38.57
25.71
27.14
8.58
TOTAL 70 100
Source : Primary data
The above table 4.18.1 shows the problems faced by the
respondents in doing business. 38.5% of the respondents faced financial
problem. 27.14% of the respondents faced lack of training problem. 25.71%
of the respondents faced marketing problem and 8.58% of the respondents
faced other problems.
~ 98 ~
38.57
25.71
27.14
8.58
Financial problem Marketing Training Others
~ 99 ~
TABLE 4.19
PROBLEMS OVERCOME IN BUSINESS
S.NO. OPTION NO. OF RESPONDENTS
PERCENTAGE
1.
2.
Yes
No
70
----
100
TOTAL 70 100
Source : Primary data
The above table 4.19 shows whether the problems are overcome in
business or not. 100% of the respondents accepted that their problems are
overcome.
~ 100 ~
Yes No0
20
40
60
80
100
120
OPTION
PERC
ENTA
GE
~ 101 ~
TABLE 4.19.1
FACTORS TO OVERCOME PROBLEMS
S.NO. FACTORS NO. OF RESPONDENTS
PERCENTAGE
1.
2.
3.
4.
By loan from SHG
By training given
By marketing assistance provided
Others
27
18
19
6
38.57
25.71
27.14
8.58
TOTAL 70 100
Source : Primary data
The above table 4.19.1 shows the factors to overcome problems in
business. 38.57% of the respondent’s problem overcome by the loan facility
provided by SHG. 27.14% of the respondent’s problem overcome by the
training given. 25.71% of the respondent’s problem overcome by the
marketing assistance provided. 8.58% of the respondent’s problem
overcome by the other facilities provided by the SHG.
~ 102 ~
By loan fro
m SHG
By train
ing given
By mark
eting as
sistan...
Others
0
10
20
30
40
38.57
25.71 27.14
8.58
FACTORS FOR OVERCOMING PROBLEM
PERCEN
TAGE
~ 103 ~
TABLE 4.20
BENEFITS DERIVED BY SHG MEMBERS
S.NO. BENEFITS NO. OF RESPONDENTS
PERCENTAGE
1.
2.
3.
4.
5.
Habit of saving
Economic independence
Self confidence
Additional employment
Others
33
23
45
15
9
26.4
18.4
36
12
7.2
TOTAL 125 100
Source : Primary data
The above table 4.20 shows the benefits derived by the SHG
members. 36% of the respondents gained self confidence. 26.4% of the
respondents got the habit of saving. 18.4% of the respondents gained
economic independence. 12% of the respondents got additional employment
and 7.2% of the respondents got other benefits.
~ 104 ~
Habit o
f sa...
Econom
ic in..
.
Self co
nfid..
.
Addit
ional e
... Others
0
5
10
15
20
25
30
35
40
26.4
18.4
36
12
7.2
BENEFITS
PERC
ENTA
GE
~ 105 ~
TABLE 4.21
FAMILY STATUS AFTER JOINING IN SHG
S.NO. OPTION NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
Well Improved
Improved
Not improved
61
47
17
48.8
37.6
13.6
TOTAL 125 100
Source : Primary data
The above table 4.21 shows the family status of the respondents
after joining in SHG. 48.8% of the respondent’s family was well improved.
37.6% of the respondent’s family was improved and 13.6% of the
respondent’s family was not improved.
~ 106 ~
Well im-
proved Improved
Not improved
0
10
20
30
40
5048.8
37.6
13.6
OPTION
PERCEN
TAGE
~ 107 ~
TABLE 4.22
SOCIO – ECONOMIC STATUS OF THE RESPONDENTS
S.NO. SOCIO-ECONOMIC STATUS
NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
Changed
Not changed
125
---
100
----
TOTAL 125 100
Source : Primary data
The above table 4.22 shows the socio-economic status of the
respondents. 100% of the respondents socio-economic status was changed.
~ 108 ~
Changed
Not changed
0
10
20
30
40
50
60
70
80
90
100
100
0
SOCIO ECONOMIC STATUS
PERCEN
TAGE
~ 109 ~
TABLE 4.22.1
RESPONDENT’S SATISFACTION TOWARDSTHEIR ECONOMIC NEEDS
S.NO. SOCIO-ECONOMIC STATUS
NO. OF RESPONDENTS
PERCENTAGE
(%)
1.
2.
3.
Satisfied
Fairly Satisfied
Not satisfied
69
43
13
55.2
34.4
10.4
TOTAL 125 100
Source : Primary data
The above table 4.22.1 shows the respondent’s satisfaction
towards their economic needs after joining in SHG. 55.2% of the
respondents are satisfied. 34.4% of the respondents are fairly satisfied and
10.4% of the respondents are not satisfied.
~ 110 ~
Satisfied
Fairly satisfied
Not satisfied
0
10
20
30
40
50
60 55.2
34.4
10.4
SOCIO ECONOMIC STATUS
PERCEN
TAGE
~ 111 ~
Findings, Suggestions and Conclusion
“Millions of women in our hamlets know what unemployment
means. Give them access to economic activities and they will
have access to power and self- confidence to which they hither
to have been strangers ”
-Mahatma Gandhi
Based on the questionnaire , discussions with the group and
analysis the following findings emerged.
Findings
Age structure is one of the important variable 56.8% of the respondents are
in the age group of 30-40years. During this period the women can be empowered
effectively.
4/5 of the respondents are literate so that it would be very useful for the
effective functioning of SHG.
52% of the respondents are married. They said that they are in need of
additional economic support to run the family efficiently.
40.8% of the respondents earn income between 25000 – 35000.
~ 112 ~
36% of the respondents have become the members of SHGs voluntarily.
This shows that women are interested in empowerment.
32% of the respondents join in SHGs due to poverty. Most of them join to
overcome poverty.
46.4% of the respondent’s family members allowed them to join in SHG.
This shows that women are dominated by the husband and others.
34.4% of the respondents are House wife. In order to meet out the
financial needs in the family most of the house wife join in SHG.
72% of the respondents borrowed money to meet their expenses.
64% of the respondents says that the procedure of the banks in sanctioning
loan is not simple and quick.
43.33% of the respondents borrow money from private lenders in the
village.
53.6% of the respondents pay the loan in irregular intervals due to several
reasons.
37.31% of the respondents do not pay the loans regularly due to their low
income and high interest rate.
37.6% of the respondents get the loan for consumption purpose.
~ 113 ~
After joining in SHGs 61.6% of the respondents pay the loan in regular
intervals. 29.6% of the respondents pay their loan in regular intervals due to
improved income.
After joining in SHGs 71.2% of the respondents started saving. 33.7% of
the respondents invest their savings in post office.
34.4% of the respondents did not involve in any activities for the
development of village.
34.40% of the respondents do not participate in any village programs.
48% of the respondent’s conduct the meeting once in a week.
66% of the respondents are doing business. In that 38.5% of the
respondents faced financial problem and after joining in SHGs their problems in
doing business is overcome by the various financial assistance, marketing, training
and other facilities provided by the SHG.
Members perceived several benefits through their membership in SHGs
such as self confidence (36%), promotion of savings habit(26.4%), economic
independence (18.4%), additional employment(12%) and other benefits(7.2%).
After joining in SHG 36% of the respondents gained self confidence.
After joining in SHG 48.8% of the respondent’s family was well improved.
Socio-economic status of the respondents has changed and 55.2% of the
respondents are satisfied with their economic needs.
~ 114 ~
Among 10 SHGs only 3 SHGs are doing specific business
altogether.
Suggestion
Considering the findings of the study, the following suggestions
were prescribed :
Literacy and numeric training is needed for the poor women
to benefit from the micro-credit schemes.
Training in legal literacy, rights and gender awareness are
important complements to micro-credit for the empowerment of
women. The members should be given necessary training and
guidance for the successful operation of the group.
The members of the SHG should be more active, enthusiastic
and dynamic to mobilize their savings by group actions. In this
process NGOs should act as a facilitator and motivator.
The office bearers managing the group should be given
nominal financial benefits, which will enable them to be more
involved in the activities of the Group.
The bank should advance adequate credit to the SHG
according to their needs.
~ 115 ~
Uniformity should be maintained in formation and extension
of financial assistance to them by banks in all blocks.
The procedure of the banks in sanctioning credit to SHG
should be simple and quick.
Marketing facilities for the sale of products of SHG may be
created.
Periodical exhibitions at block-level may be organised where
the products of SHG can be displayed.
Meetings and Seminars may be organized where the members
will get a chance to exchange their views and be able to develop their
group strength by interactions.
Active intervention by district administration, professional
bodies and voluntary organizations is precondition for the successful
conception of micro enterprises in terms of skill training, designing
products, providing new technology and access to market.
The SHGs doing specific business altogether should be given
some more special benefits that will encourage the members to do
specific business and empower themselves.
~ 116 ~
The government should organize entrepreneurship to develop
the vocational training to the members of SHG for the proper
utilization of the loan amount.
Periodic training programmes should be conducted not only
for group leaders but also for the group members. To enhance the
participation of all members, exclusive membership education
programmes need to be conducted.
The group approach is the need of the hour to bring together
the deprived women to improve the income sources and to create the
social awareness.
Conclusion
Women who have barely completed their schooling, Who could
earlier barely step out of their houses to talk to government officials or other
village men. Are today stepping out and caring for themselves and their
communities with confidence. Like giving away notebooks and pens to a
few poor students or uniforms to few students or organizing small social
functions, but nevertheless they show an underlying awareness of the
problems that the community faces. Not only do their acts reflect a
~ 117 ~
heightened awareness but they also reflect a willingness on their part to do
something about it, however small.
Most women reported that after their participation in SHGs they
are more respected in their own families and society in general. Their
contribution to the family is valued and the family in turn supports them to
undertake activities. Women also now voice their opinions in family
decisions and get heard. An interesting development is that the men, unlike
earlier, are now encouraging women to step out of their houses to work and
participate in the social and community events.
The expected level of improvement can be achieved by due
modification of structure of the scheme and encouraging full pledged
participation of the NGOs with their real understanding of the purpose of the
scheme. The members of the SHG should also whole-heartedly work
together with unity for their individual betterment that will build a mightier
nation.
~ 118 ~
~ 119 ~