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.

Micro finance and women empowerment

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 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.

Women self-help groups

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 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.

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

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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,

repayment of loans, in building up leadership, and establishing

linkage with banks.

 To offer suggestions based on the findings.

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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

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
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 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.

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

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Chapter-IV Analysis and Interpretation of data

Chapter-V Findings, Suggestions and Conclusion.

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

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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

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.

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 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.

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.

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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

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

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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

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
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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

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.

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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

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.
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  They are non-political and voluntary and follow democratic

culture.

 They hold weekly meetings and mostly during non- working

hours.

 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.
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➢ 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.
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  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.

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➢ 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.

➢ Members Pass books

Individual member’s pass books in which individual’s savings and

loan Balance outstanding is regularly entered.

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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.

 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

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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

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

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 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

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,

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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.

Women empowering activities through SHGs

 Overcoming the resistance from husband and other members of

the family to join the SHG.

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 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.

 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.

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  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.

 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.

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 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

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.,

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 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

➢ 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

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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.

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

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➢ 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).

 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
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 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.

 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).

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  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.

 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

~ 29 ~
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.

➢ 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

~ 30 ~
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

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.

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➢ 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

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

~ 32 ~
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,

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.

~ 33 ~
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,

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

~ 34 ~
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.

➢ 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

~ 35 ~
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’

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,

~ 36 ~
i.e., refund of the entire life insurance premium amount paid if the SHG

member survives at the end of a 10 year period.

➢ 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.
~ 37 ~
➢ 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.

~ 38 ~
 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

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,
~ 39 ~
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

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

~ 40 ~
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

~ 41 ~
Study Area is Kondampalayam village belong to Sarcarsamakulam block.

There are nearly 50 SHGs. From that 10 Women SHGs are randomly

selected.
~ 42 ~
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

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

~ 43 ~
  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

 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

~ 44 ~
  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

 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

~ 45 ~
  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

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

~ 46 ~
  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

 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

~ 47 ~
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

 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

~ 48 ~
  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

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

~ 49 ~
 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

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.

~ 50 ~
 TABLE NO: 4.1

AGE - WISE CLASSIFICATION

S.NO. AGE NO. OF PERCENTAGE

RESPONDENTS
(%)

1. 20-30 20 16
2. 30-40 71 56.8
3. 40 & above 34 27.2

TOTAL 125 100

Source : Primary data

~ 51 ~
 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.

~ 52 ~
 TABLE 4.2

EDUCATIONAL DISTRIBUTION OF RESPONDENTS

S.NO. EDUCATIONAL NO. OF PERCENTATGE

STATUS RESPONDENTS
(%)

1. Illiterate 13 10.4
2. Elementary Education 33 26.4
3. High school education 27 21.6
4. Higher secondary 37 29.6
education
5. Graduation 15 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%).

~ 53 ~
 TABLE 4.3

MARITAL STATUS OF THE RESPONDENTS

S.NO. MARITAL NO. OF PERCENTAGE

STATUS RESPONDENTS
(%)

1. Married 65 52
2. Unmarried 35 28
3. Widow 11 8.8
4. Others 14 11.2

TOTAL 125 100

Source : Primary data

~ 54 ~
 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.

~ 55 ~
 TABLE 4.4

ANNUAL INCOME DISTRIBUTION OF THE

RESPONDENTS

S.NO. ANNUAL NO. OF PERCENTAGE

INCOME RESPONDENTS
(%)

1. 25000-35000 40 32
2. 35000-45000 51 40.8
3. 45000 & Above 34 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.

~ 56 ~
 TABLE 4.5

KNOWLEDGE TO JOIN IN SHGs

S.NO. HELPED BY NO. OF PERCENTAGE

PERSONS RESPONDENTS (%)

1. Voluntarily 45 36
2. NGO 29 23.2
3. Relatives 18 14.4
4. Other women 33 26.4

TOTAL 125 100

Source : Primary data

~ 57 ~
 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.

~ 58 ~
 TABLE 4.6

REASONS FOR JOINING IN SHGs

S.NO. REASONS NO. OF PERCENTAGE

RESPONDENTS
(%)

1. Poverty 36 28.8
2. To empower 40 32
3. Commence new 29 23.2
business
4. 20 16
To improve the
business

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.

~ 59 ~
~ 60 ~
 TABLE 4.7

FAMILY MEMBER’S RESPONSE

S.NO. OPTION NO. OF PERCENTAGE

RESPONDENTS
(%)

1. Allowed 58 46.4
2. Not allowed 67 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.

~ 61 ~
~ 62 ~
 TABLE 4.8

OCCUPATIONAL STATUS OF THE RESPONDENTS

S.NO. OCCUPATION NO. OF PERCENTAGE

RESPONDENTS
(%)

1. House wife 43 34.4

2. Business 35 28
3. Agri coolie 28 22.4
4. Others 19 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.

~ 63 ~
~ 64 ~
 TABLE 4.9

PROCEDURE OF THE BANKS

IN SANCTIONING LOAN

S.NO. PROCEDURE NO. OF PERCENTAGE

RESPONDENTS
(%)

1. Simple & quick 45 36

2. Not simple & quick 80 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.

~ 65 ~
~ 66 ~
 TABLE 4.10

BORROWING STATUS OF THE RESPONDENTS

S.NO. BORROWING NO. OF PERCENTAGE

STATUS RESPONDENTS
(%)

1. Yes 90 72
2. No 35 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.

~ 67 ~
~ 68 ~
 TABLE 4.10.1

PLACES FROM WHERE RESPONDENTS

BORROW MONEY

S.NO. PLACE NO. OF PERCENTAGE

RESPONDENTS

1. Chit fund 19 21.11

2. Bank 9 10
3. Friends & relatives 23 25.56
4. Private lenders 39 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.

~ 69 ~
~ 70 ~
 TABLE 4.11

LOAN REPAYMENT MODE OF RESPONDENTS

S.NO. REPAYMENT MODE NO. OF PERCENTAGE

RESPONDENTS

1. Regular Intervals 58 46.4

2. Irregular Intervals 67 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.

~ 71 ~
~ 72 ~
 TABLE 4.11.1
REASONS FOR NOT PAYING LOANS REGULARLY

S.NO. REASONS NO. OF PERCENTAGE

RESPONDENTS
(%)

1. Low income 25 37.31

2. High interest rate 19 28.36
3. Family problems 14 20.9
4. Others 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.

~ 73 ~
~ 74 ~
 TABLE 4.12

PURPOSE-WISE CREDIT DEMANDED

BY SHG MEMBERS

S.NO. PURPOSE NO. OF PERCENTAGE

RESPONDENTS
(%)

1. Production 22 17.6
2. Consumption 47 37.6
3. Functions 23 18.4
4. Emergency 33 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.

~ 75 ~
~ 76 ~
 TABLE 4.13

LOAN REPAYMENT MODE AFTER JOINING IN SHGs

S.NO. REPAYMENT MODE NO. OF PERCENTAGE

RESPONDENTS
(%)

1. Regular intervals 77 61.6

2. Irregular intervals 48 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.

~ 77 ~
~ 78 ~
 TABLE 4.13.1

REASONS FOR PAYING LOANS REGULARLY

S.NO. REASONS NO. OF PERCENTAGE

RESPONDENTS
(%)

1. Improved income 37 29.6

2. Low interest rate 26 20.8
3. others 14 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.

~ 79 ~
~ 80 ~
 TABLE 4.14

SAVING HABIT OF THE RESPONDENTS

S.NO. SAVING HABIT NO. OF PERCENTAGE

RESPONDENTS

1. YES 89 71.2
2. NO 36 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.

~ 81 ~
~ 82 ~
 TABLE 4.14.1

PLACES WHERE SAVINGS ARE INVESTED

S.NO PLACES NO. OF PERCENTAGE

RESPONDENTS
(%)

1. Chit funds 19 21.35

2. Post office 30 33.7
3. Bank 23 25.84
4. LIC 10 11.24
5. Others 7 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.

~ 83 ~
~ 84 ~
 TABLE 4.15

ACTIVITIES INVOLVED FOR DEVELOPMENT

OF VILLAGE

S.NO. ACTIVITIES NO. OF PERCENTAGE

RESPONDENTS
(%)

1. Physical help 24 19.2

2. Financial help 15 12
3. Through SHG 33 26.4
4. Others 10 8
5. NIL 43 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.

~ 85 ~
~ 86 ~
 TABLE 4.16

PARTICIPATION IN THE VILLAGE PROGRAMMES

S.NO. PROGRAMMES NO. OF PERCENTAGE

RESPONDENTS
(%)

1. Social awareness 27 21.6

2. Cultural programs 34 27.2
3. Political events 11 8.8
4. Others 10 8
5. NIL 43 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.

~ 87 ~
~ 88 ~
 TABLE 4.17

RESPONDENTS MEETING WITHIN THE GROUP

S.NO. TIME GAP OF NO. OF PERCENTAGE

MEETING RESPONDENTS

1. Once in a week 60 48
2. Once in 15 days 48 38.4
3. Once in a month 17 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.

~ 89 ~
~ 90 ~
 TABLE 4.18

RESPONDENTS DOING BUSINESS

S.NO. OPTION NO. OF PERCENTAGE

RESPONDENTS

1. YES 70 66
2. NO 55 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.

~ 91 ~
~ 92 ~
 TABLE 4.18.1

PROBLEMS FACED IN DOING BUSINESS

S.NO. PROBLEMS NO. OF PERCENTAGE

RESPONDENTS

1. Financial problem 27 38.57

2. Marketing 18 25.71
3. Training 19 27.14
4. Others 6 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.

~ 93 ~
~ 94 ~
 TABLE 4.19

PROBLEMS OVERCOME IN BUSINESS

S.NO. OPTION NO. OF PERCENTAGE

RESPONDENTS

1. Yes 70 100
2. No ----

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.

~ 95 ~
~ 96 ~
 TABLE 4.19.1

FACTORS TO OVERCOME PROBLEMS

S.NO. FACTORS NO. OF PERCENTAGE

RESPONDENTS

1. By loan from SHG 27 38.57

2. By training given 18 25.71
3. By marketing assistance 19 27.14
provided
Others
4. 6 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.

~ 97 ~
~ 98 ~
 TABLE 4.20

BENEFITS DERIVED BY SHG MEMBERS

S.NO. BENEFITS NO. OF PERCENTAGE

RESPONDENTS

1. Habit of saving 33 26.4

2. Economic independence 23 18.4
3. Self confidence 45 36
4. Additional employment 15 12
5. Others 9 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.

~ 99 ~
~ 100 ~
 TABLE 4.21

FAMILY STATUS AFTER JOINING IN SHG

S.NO. OPTION NO. OF PERCENTAGE

RESPONDENTS
(%)

1. Well Improved 61 48.8

2. Improved 47 37.6
3. Not improved 17 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.

~ 101 ~
 TABLE 4.22

SOCIO – ECONOMIC STATUS OF THE RESPONDENTS

S.NO. SOCIO-ECONOMIC NO. OF PERCENTAGE

STATUS RESPONDENTS
(%)

1. Changed 125 100

2. Not changed --- ----

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.

~ 102 ~
~ 103 ~
 TABLE 4.22.1

RESPONDENT’S SATISFACTION TOWARDS

THEIR ECONOMIC NEEDS

S.NO. SOCIO-ECONOMIC NO. OF PERCENTAGE

STATUS RESPONDENTS
(%)

1. Satisfied 69 55.2
2. Fairly Satisfied 43 34.4
3. Not satisfied 13 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.

~ 104 ~
~ 105 ~
 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.

~ 106 ~
 40.8% of the respondents earn income between 25000 –

35000.

 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.

~ 107 ~
 37.6% of the respondents get the loan for consumption

purpose.

 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

~ 108 ~
 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.

 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.

~ 109 ~
 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.

 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

~ 110 ~
 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.

 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

~ 111 ~
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

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.

~ 112 ~
~ 113 ~