shg-bank linkage programme final

7/24/2019 SHG-Bank Linkage Programme Final

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SHG-BANK-LINKAGE PROGRAM (MICROFINANCE)

IN POVERTY ALLEVIATION WITH SPECIAL

REFERANCE TO ALLAPUZHA DISTRICT

A project report submitted to

Amrita Vishwa Vidyapeetham in partial fulfillment of the award of the degree of

Bache!" !# C!$$e"ce

S%&$'e &*

ASHNA ANIL KUMAR AM+AR+U,COM./0

KAVY SANTHOSH AM+AR+U,COM./,0

RESHMA+S AM+AR+U,COM./12

Under the guidance of

DR. T G MA!"ARA

Department of #ommerce and Management

Amrita school of arts and sciences

Amrita Vishwa Vidyapeetham

Amritapuri$ %ollam

May &'()

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CERTIFICATE OF THE MENTOR

DR. T G MANOHARAN

Lecturer,

Amrita Vishwa Vidyapeetham,

Amritapuri campus,

K!!am,

This is t certi"y that the reprt e#tit!ed $%HG&'ANK L(NKAG) PROGRAM

*M(+RO(NAN+)- (N POV)RT ALL)V(AT(ON /(TH %P)+(AL R))RAN+) TO

ALLAP01HA D(%TR(+T $ has 2ee# prepared 2y Ms. Ash#a A#i! Kumar, Ka3ya

%a#thsh a#d Reshma % u#der my super3isi# a#d guida#ce, "r the

"u!4!!me#t " 'ache!r " +mmerce. There 4e!d wr5 is satis"actry.

Date6

%ig#ature " the Me#tr

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DECLARATION

We hereby declare that this project work entitled “SHG-BAN KLINKAG !"#G"A$

%$I&"#'INAN&( IN !#)"*+ ALL)IA*I#N WI*H S!&IAL "'"AN& *#

ALLA!,HA .IS*"I&*“ s/b0itted by /s 1or the partial 1/l1ill0ent o1 the re2/ire0ent 1or the

award o1 Bachelor o1 &o00erce %B &o0(3 is a record o1 o/r own research work /nder the

4/idance o1 !roject $entor %." * G $AN#HA"AN3 .epart0ent o1 &o00erce And

$ana4e0ent(5 We certi1y that the project is o/r own work and has not been s/b0itted earlier 1or

the award o1 any de4ree or diplo0a to any Instit/te or ,ni6ersity5

!LA&7 A0ritap/ri NA$8"#LL N#7

ASHNA ANIL K,$A" %9:(

KA)+A SAN*H#SH %;:(

"SH$A5S %<=(

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ACKNOWLEDGEDGEMENT

'irst and 1ore0ost3 We wo/ld like to thank >$A*A A$"I*ANA.A$A+I.)I> o/r belo6ed

A$$A3 who has been 4/idin4 li4ht 1or s/ccess1/l co0pletion o1 this project5

We e?press 0y heart1elt sense o1 4ratit/de to ."5 !"$A3 H#. A0rita )ishwa )idyapeetha0

,ni6ersity School o1 Arts and Science3 A0ritap/ri allowin4 /s to do this st/dy with all s/pport5

It is o/r pri6ile4e to work on the project > SHG-BANKLINKAG !"#G"A$

%$I&"#'INAN&( IN !#)"*+ ALL)IA*I#N WI*H S!&IAL "'"AN& *#

ALLA!,HA .IS*"I&*5>

We also thank ."5 * G $AN#HA"AN who has been a so/rces o1 inspiration thro/4h their

constant 4/idance3 personal interest3 enco/ra4e0ent and help5 In spite o1 their b/sy sched/le

they ha6e always 1o/nd ti0e to 4/ide /s thro/4h the project5 We are also 4rate1/l to reposin4

con1idence in 0y abilities and 4i6in4 /s the 1reedo0 to work on o/r project5

We also take this opport/nity to thank all 0y 1a0ily and 1riends who has been the so/rce o1

inspiration thro/4ho/t the project

We are hi4hly indebted and thank1/l to o/r respondents5

Last b/t not least3 we also thank the #$NI!#*N* AL$IGH*+ 1or 4i6in4 /s the stren4th and

ability in the s0ooth and steady cond/cted o1 this project5

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TABLE OF CONTENTSSL+NO cha3e" C!4e45 Pa6e 4!

&erti1icate o1 0entor

. .eclaration

, Acknowled40ent

2 List o1 tables

7 List o1 1i4/res

8 Abstract

1 I4"!%c'!4 -1

0 959 Introd/ction to the St/dy .

9 +. "e6iew o1 Literat/re 2

/ +, State0ent o1 the proble0 7

+2 #bjecti6es o1 the St/dy 8

. +7 "esearch $ethodolo4y 8

, +8 Li0itations o1 the st/dy 1

2 +1 &hapterisation 1

7 . P"!#'e !# he 5%* 9-,8

8 .+ *itle o1 the st/dy ./

0 .+. Ind/stry pro1ile .2

9 , The!"e'ca Pe"53ec':e ,8-,1

./ 2 A4a*5'5 a4 '4e"3"ea'!4 ,0-1/

. 7 F'4'465 1-12

.. 8 S%66e5'!45 a4 "ec!$$e4a'!4 17-18

., 1 C!4c%5'!4 11-10

.2 B'&'!6"a3h* 19

.7 A33e4'; 0/-02

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LIST OF TABLES

TABLE

NO:

TABLE TITLE PAGE NO:

7.8 Age " the resp#de#t 9:7.; Re!igi# " the resp#de#t 7<79 +aste categry " the resp#de#t 787.7 )ducati# " the resp#de#t 7;7.= Occupati# " the resp#de#t 797.> /hat is yur m#th!y i#cme? 777.@ /hat is yur m#th!y epe#diture? 7=7.B Marita! status? 7>7.: ami!y particu!ars 7@

7.8< Huseh!d siCe 7B7.88 Are yu !i3i#g i# w# huse? 7B7.8; Type " huse 7:7.89 Hw ma#y acres " !a#d yu ha3e? =<7.87 /hat is yur grup siCe? =87.8= %i#ce hw !#g are the mem2er " the grup? =;7.8> /h mti3ated yu t i# %e!" He!p Grup? =97.8@ /hat are the reas#s "r i#i#g %HG? =77.8B /h ta5e decisi#s # day t day "u#cti#i#g "

yur grup?

==

7.8: Des 2a#5s pr3ide !a# "r %HG? =>7.;< Are yur grup a# accu#t h!der i# the 2a#5? =@7.;8 Ha3e yu ta5e# a !a#? =@7.;; Mst!y "r what purpse !a# is ta5e#? =@7.;9 Rate " i#terest is t 2e gi3e# t the !a#? =B7.;7 (s 'a#5 !a# amu#t adeEuate t %HG? =:7.;= Hw much !a# yu ha3e ta5e# "rm the 2a#5? =:7.;> (#sta!!me#t perid t repay !a# t the 2a#5? =:7.;@ %tatus " repayme#t ><7.;B (s there a#y de!ay i# sa#cti#i#g " !a# 2y

2a#5s?

>8

7.;: Did yu "ace a#y diFcu!ties at the time "

getti#g !a#?

>8

7.9< Des %HG pr3ide pers#a! !a#s? >;7.98 Hw much amu#t did %HG pr3ides? >;7.9; Rate " i#terest >97.99 (#sta!!me#t perid t repay !a#? >9

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7.97 %tatus " repayme#t >77.9= r which purpse, yu uti!iCe the !a# amu#t? >=7.9> (s credit "aci!ities are impr3ed a"ter i#i#g

%HG?

>=

7.9@ (" impr3ed, what are the surces " credit? >>7.9B /hat is the attitude " yur "ami!y whi!e yu

are "u#cti#i#g with the grup?

>>

7.9: (s there a#y c#ict am#g grup mem2ers? >@7.7< (" yes steps ta5e# t res!3e it? >@7.78 Are yu satis4ed with the "u#cti#i#g " yur

Grup?

>@

7.7; G)N)RAL )N0(R >B&@<

LIST OF FIGURES

TABLE NO: TABLE TITLE PAGE NO: Ta2!e 7.9 +A%T) +AT)GOR 78 Ta2!e 7.7 )D0+AT(ON 0L((+AT(ON 7; Ta2!e 7.= O++0PAT(ON 79 Ta2!e 7.> MONTHL (N+OM) 77 Ta2!e 7.@ MONTHL )IP)ND(T0R) 7= Ta2!e 7.B MAR(TAL %TAT0% 7> Ta2!e 7.: AM(L PART(+0LAR% 7@ Ta2!e 7.8> /HO MOT(VAT)D O0 TO JO(N %HG =9

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Ta2!e 7.8@ R)A%ON OR JO(N %HG =7

Ta2!e 7.;; P0RPO%) O LOAN =@

*able =5@ L#AN A$#,N* '"#$ *H BANK

*able =5;; !,"!#S AN. ,*ILIA*I#N #' L#AN A$#,N* C=

*able =5; SA*IS'A&*#"+ L)L #N ',N&*I#NING #'

G"#,!

C<

E;ec%':e S%$$a"*

A #ati#s 4#a#cia! status reects the !i3i#g status " its citiCe#. The #ati# is

c#sidered 4#a#cia!!y secured, #ce the pep!e !i3i#g i# it attai# a 2etter

!i3i#g e#3ir#me#t. 0p!i"tme#t i# each citiCe#s !i"e sty!e c#tri2utes t theup!i"tme#t " the #ati# itse!".

%e3era! Micr i#a#ce (#stituti#s *M(s- ha3e 2ee# eperime#ti#g a#d tryi#g

t de3e!p 4#a#cia! prducts, t address the di3erse #eeds " !iEuidity,

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security a#d 4#a#cia! retur#s "r the pr, a#d ha3e succeeded t a# ete#t.

O#e methd " access t micr 4#a#ce 2y A!appuCha district, rura! wme# i#

particu!ar, is the %e!" He!p Grup&'a#5 !i#5age prgramme, where 2a#5s

pr3ide 4#a#ce t the grups "r u#derta5i#g ec#mic acti3ities. 'ut 2e"re

the 4#a#cia! prducts are de3e!ped "r the pr, it is use"u! t u#dersta#d

the "u#d w a#d epe#diture patter#s s that issues pertai#i#g t sa3i#gs

a#d credit ca# 2e addressed. The prese#t study deri3ed # a represe#tati3e

samp!e, withi# A!appuCha District. The 2ecti3e " this study is t

u#dersta#d the 4#a#cia! ws " the rura! pr a#d "aci!itate the prcess 2y

which 4#a#cia! i#stituti#s ca# desig# cmmu#ity dri3e# wme#

empwerme#t strategy a#d 4#a#cia! prducts that wu!d he!p rura! pr.

A c#sidera2!e rise i# the !i3i#g sta#dard " the pep!e a"ter i#i#g %HG

ta5es the c#cept " such grups t a 2etter !e3e!. The sueri#g r the pr

e#ys the "reedm " eEua!ity i# the sciety with the idea " %HG, which t a

2etter ete#d, he!ped i# i#creasi#g the capa2i!ity " the pr 4#a#cia!!y a#d

act as u#ited. )3ery sma!! step ta5e# twards the up!i"tme#t " pr ma5es

the #ati# grw higher a#d as a resu!t the #ati#s 4#a#cia! sta2i!ity reaches

greater heights.

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CHAPTER-

INTRODUCTION

+ INTRODUCTION

$icro1inance is a 4eneral ter0 to describe 1inancial ser6ices to low-inco0e indi6id/als or to

those who do not ha6e access to typical bankin4 ser6ices5

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$icro1inance is also the idea that low-inco0e indi6id/als are capable o1 li1tin4 the0sel6es o/t o1

po6erty i1 4i6en access to 1inancial ser6ices5 While so0e st/dies indicate that 0icro1inance can

play a role in the battle a4ainst po6erty3 it is also reco4niDed that is not always the appropriate

0ethod3 and that it sho/ld ne6er be seen as the only tool 1or endin4 po6erty

Sel1 Help Gro/ps %SHGs( are beco0in4 one o1 the i0portant 0eans 1or the e0power0ent o1

poor wo0en in al0ost all the de6elopin4 co/ntries incl/din4 India5 Kerala is no e?ception as

re4ards the role played by wo0enEs collecti6es3 known by di11erent na0es 1or e0ancipation and

e0power0ent o1 poor wo0en5 *he NG#s who are in the 1ield o1 socio-econo0ic de6elop0ent

o1 the 0ar4inalised sections in the society since last 1o/r to 1i6e decades3 had initially or4anised

&redit ,nions and $ahila Sa0aja0s 1or better participation o1 people in de6elop0ent initiati6es

and also 1or thri1t and credit 1acilities5 Since the e0er4ence o1 SHG syste03 as per the initiati6eso1 National Bank 1or A4ric/lt/re and "/ral .e6elop0ent %NABA".(3 and directi6es 1ro0

"eser6e Bank o1 India %"BI(3 1ro0 the be4innin4 o1 9Fs3 0ost o1 these $ahila Sa0aja0s and

&redit ,nions ha6e been con6erted into SHGs3 linked the0 to 1inancial instit/tions 1or better

credit 1acilities5 In Kerala3 since the 0iddle o1 9Fs3 the State Go6ern0ent also took initiati6es

in or4aniDin4 the /rban poor wo0en into Nei4hbo/rhood Gro/ps %NHGs(5 *hese NHGs are

reco4niDed as SHGs by NABA".3 as 1ar as SHG-Bank linka4e and credit 1acilities are

concerned5

K/d/0basree is a !ro4ra00e /nder the !o6erty radication $ission %!$( o1 Go6ern0ent o1

Kerala3 which ca0e into e?istence since 9<5 *he !$ is a Go6ern0ent #r4anised Non-

Go6ern0ental #r4aniDation %G#NG#(3 directly s/per6ised by the Local Ad0inistration

.epart0ent o1 the Go6ern0ent o1 Kerala5 *he concept o1 K/d/0basree pro4ra00e is concei6ed

as a po6erty eradication strate4y and at the sa0e ti0e as a pro4ra00e i0ple0ented both in

r/ral as well as in /rban areas5

In the constit/tion and 1/nctionin4 o1 SHGs3 there is a wide 6ariation obser6ed a0on4 the SHGs

o1 NG#s and between the SHGs o1 K/d/0basree and NG#s5 "e4ardin4 0e0bership3

attendance and other re4/lations3 SHGs o1 K/d/0bashree ha6e 1i?ed r/les and re4/lations

whereas the SHGs o1 NG#s do not ha6e any hard and 1ast r/le in this re4ard5 *he desi4nations o1

o11ice bearers di11er between SHGs o1 NG#s5 *he n/0ber o1 ?ec/ti6e &o00ittee $e0bers

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also 6aried dependin4 /pon the total stren4th o1 the 4ro/p5 SHGs o1 K/d/0basree 1ollow the

bye-laws o1 &.S in selectin4 its e?ec/ti6e 0e0bers and the o11ice bearers are elected in a

de0ocratic way o1 6otin45 In the selection o1 bene1iciaries 1or pro6idin4 loan3 the SHGs 1ollow

certain criteria5 Interest rate to be char4ed and the n/0ber o1 install0ents 1or repay0ent and

dealin4 with de1a/lter o1 repay0ent in ti0e were le1t to the SHG5 *he 0ost co00on rate o1

interest char4ed by the SHGs was "s5 9 per "s5 9FF per 0onth3 i5e5F5F9 interest5

Nei4hbo/rs3 1riends3 other 0e0bers o1 SHGs3 o11icials o1 K/d/0basree

and ani0ators o1 NG#s were the a4ents who 0oti6ated the respondents to join in the SHGs5 'or

0ajority %< ( o1 the respondents the 0oti6atin4 1actor 1or joinin4 the SHGs was econo0ic

reason3 which incl/des inc/lcatin4 sa6in4s-habit and 4ettin4 easy loan at a red/ced rate o1

interest5 Interaction with other wo0en in their area cooperation a0on4 0e0bers3 ac2/irin4

knowled4e3 skills and a desire to work 1or the de6elop0ent o1 the co00/nity etc5 are the social

0oti6es in1l/enced abo/t 9 o1 the respondents5

*here were dropo/ts reported 1ro0 both the SHGs o1 NG#s and

K/d/0basree5 ,s/ally the dropo/t starts a1ter C to 9@ 0onths5 &o0parati6ely dropo/t rate was

1o/nd less in K/d/0basree SHGs than 1ro0 the SHGs o1 NG#s5 "e4ardin4 the in1or0ation

abo/t thri1t sa6in4 and loan repay0ent3 there was no si4ni1icant di11erence between 0e0bers o1

SHGs o1 NG#s and K/d/0basree5 Howe6er3 di11erent NG#s 1ollow di11erent strate4y 1or thri1t

sa6in4s5 So0e 1i? an a0o/nt3 which is a4reed /pon by 0ajority o1 the 4ro/ps /nder the03 while

others lea6e the 0atter to the SHGs to 1i? /p the a0o/nt5 And3 the K/d/0basree see0 to ha6e

ad6ised its SHGs to 1i? /p so0e nor0s 1or thri1t sa6in4s5 In the case o1 SHG-bank linka4e3 there

was si4ni1icant di11erence between K/d/0basree and NG#s5 All the SHGs selected 1ro0 NI.S

and $ithranikethan were not linked to reco4niDed banks81inancial instit/tions since these two

NG#s had their own syste0s where the thri1t sa6in4s were deposited5 All the SHGs o1

K/d/0basree were linked to Banks within two years5

"e4ardin4 con1lict 0ana4e0ent3 only C o1 the respondents a4reed abo/t

s/b4ro/ps in their SHG syste0 and it was 1o/nd in SHGs o1 NG#s as well as in K/d/0basree

4ro/ps5 $ost o1 the proble0s e0er4ed d/e to 1inancial dealin4 and a/tono0y o1 the leaders5

%0icro credit 4/ideline @F9;-@F9=(

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+. LITERATURE REVIEW

$adh/s/dan Ghosh3 @F9@3*his paper re6iews the pro4ress o1 SHG-Bank linka4e pro4ra00e at

the national and re4ional le6els3 and e?a0ines its i0pact on the socio-econo0ic conditions o1

SHG 0e0ber ho/seholds5 *he pro4ra00e has 4rown at a tre0endo/s pace d/rin4 last two

decades and e0er4ed as the 0ost pro0inent 0eans o1 deli6erin4 0icro-1inance ser6ices in India5

*ho/4h the re4ional spread o1 the pro4ra00e is hi4hly skewed with hi4hest concentration in the

so/thern re4ion3 it has started pickin4 /p pace in other re4ions5 *he a6era4e ann/al net inco0e3

assets and sa6in4s o1 SHG 0e0ber ho/seholds increased si4ni1icantly in the post-SHG sit/ation5

*he a6era4e a0o/nt o1 loans and the re4/larity in repay0ent o1 loans increased3 and the

dependence on 0oneylenders decreased re0arkably5 *he percenta4e o1 loans /sed 1or prod/cti6e

p/rposes and e0ploy0ent per ho/sehold increased3 the incidence o1 po6erty a0on4 SHG0e0bers declined3 and the social e0power0ent o1 wo0en i0pro6ed si4ni1icantly5 *he st/dy

o11ers i0portant policy s/44estions

• $5)enkata "a0anaiah33 &5 $an4ala GowriA3 In recent ti0es the ter0 J$icro1inance %$'(

beca0e a b/DD word in the e6ery corner o1 the world as well as in the 1or0/lation o1 wel1are

pro4ra0s by 4o6ern0ent5 A1ter hearin4 s/ccess stories in 0icro1inance across the de6elopin4

co/ntries3 partic/larly Ban4ladesh3 third world nations started to 4i6e 0ore i0portance to $'s5

Since3 banks ha6e 1ailed to reach the poorest o1 the poor o1 the co/ntries pop/lation

0icro1inance e0er4ed as a potential tool to 1ill the 4ap betwee9n 1inancial instit/tions and needy

people5 thiopia3 as a least de6eloped co/ntry %L.&(3 needs h/4e 1inancial reco/rses 1or rapid

and s/stainable de6elop0ent and red/ce 4ap between ha6es and ha6e-nots5 *ho/4h we are in

@9st cent/ry where science and technolo4y plays a 6ital role in the pace o1 de6elop0ent3 0any

co/ntries across the A1rica s/11ered 1ro0 h/n4er3 ill health3 0ass po6erty and illiteracy5 *o c/rb

all these aw1/l conditions3 there is a need o1 0assi6e 1inancial reco/rses5 !ri6ate Banks and

Go6ern0ent sector banks ha6e 0any li0itations in this concern5 $ainly3 these banks ha6e hi4h

pro1it 0oti6es and they /sed to p/t 0any restrictions to sanctions loans to the poor5 In this

j/nct/re3 $icro1inance is said to be an e11ecti6e instr/0ent disco6ered in @9st cent/ry to 0iti4ate

r/ral po6erty in the world5 $icro1inance helps the poor to co0e o/t 1ro0 0any wicked

proble0s5 *he bea/ty o1 the $' is in sa1e4/ardin4 a 6ariety o1 interests o1 its 0e0bers5 In this

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paper an earnest atte0pt is 0ade to re6iew o1 the need o1 $icro 'inancial Instit/tions %$'Is(3

the role o1 $'Is in alle6iation o1 po6erty in the co/ntry and how wo0an can 4et assistance 1ro0

these instit/tions with a special re1erence to A&SI5

• .r5 !ad0aja $anoharan3 .r5 "a0eshwari "a0achandra3 .r5"5 Nir0ala .e6i3 !redatory lendin4

consists o1 those credit practices that takin4 ad6anta4e o1 the borrowers lack o1 1inancial literacy

e?ploits c/sto0ers thro/4h hi4h cost credit5 !eople 0ay be 6icti0 o1 predatory lendin4 beca/se

lackin4 alternati6e 1inancial options this is when bein4 rationed by the 1or0al 1inancial 0arket5

Howe6er3 the /nderlyin4 pre0ise is a weak credit law5 .espite so0e ad6ances in cons/0er

protection law3 predatory lendin4 has not been re4/lated in $e?ico bein4 not e6en de1ined in the

law5

+, PROBLEM OF STUDY

*he st/dy is cond/cted to /nderstand the workin4 o1 SHG /nits linked with bank in Alapp/Dha

district5 *he 0ajor objecti6e o1 this st/dy is to assess the acti6ities o1 SHG in Alapp/Dha

.istrict5/estionaires are distrib/ted a0on4 0e0bers and inter6iews are cond/cted 1or

collectin4 the data5 !o6erty eradication is the 0ain p/rpose o1 Sel1 help 4ro/ps5*he

considerable i0pro6e0ent in the stat/s o1 wo0en is done thro/4h the SHG like k/d/0bashree

and Nei4hbo/rhood 4ro/ps%NHG( beca/se the 0ain ai0 o1 SHGis to e0power wo0en5

+2 OB<ECTIVES OF RESEARCH =

95 *o /nderstand the relationship between 0icro- credit and po6erty alle6iation

@5 *o analyDe the 4rowth o1 0icro1inance sector and Sel1 Help Gro/ps %SHG(5

;5 *o /nderstand the i0pact o1 0icro credit

+7 Re5ea"ch $eh!!!6*=

"esearch 0ethodolo4y is a way to syste0atically sol6e the research proble0s scienti1ically5 It

clearly de1ines all 0ethods adopted in the st/dy 1or sol6in4 the research proble05 It also deals

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with the objecti6es o1 research st/dy3 the 0ethod o1 de1inin4 the proble03 the type o1 data

collected and the 0ethod /sed 1or collectin4 and analyDin4 data5

Re5ea"ch e5'64 *he research desi4n adopted in this st/dy is descripti6e research3 beca/se the

research is on the basis o1 s/r6ey 1or analyDin4 the proble05 Re5ea"ch a33"!ach

*he research approach adopted in this st/dy is s/r6ey approach5

Re5ea"ch '45"%$e4

*he 0ain instr/0ent /sed 1or this st/dy is a well str/ct/red 2/estionnaire5

Daa 5!%"ce

Both pri0ary and secondary data are collected 1or cond/ctin4 the st/dy5

a) P"'$a"* aa

o ,sin4 2/estionnaires

o Interaction with the SHG 0e0bers

&) Sec!4a"* aa

o Internet

Sa$3'46

a) Sa$3e %4'

*he sa0ple /nit is the 0e0bers o1 the SHG

&) Sa$3'46 a"ea

Sa0plin4 area is restricted to ALLA!,HA district5

c) Sa$3e 5'>e

*he sa0ple consists o1 9FF SHG 0e0bers in ALLA!,HA district5

+7 LIMITATIONS OF THE STUDY

• *he data 4i6en by so0e o1 the respondents relatin4 to the 1inancial aspects 0ay a11ect the res/lt3

as the data were based on their esti0ates and 4/ess work5

• Lack o1 awareness abo/t SHG by the SHG 0e0bers ca/sed inco0plete answers5

• So0e 0e0bers hesitated to open their personal 0atters in connection with SHG work5

• *i0e li0it was a 0ajor 1actor o1 concern that 0ade the project to con1ine within li0ited

ti0e

+8 CHAPTERISATION

*he project report is partitioned into se6en chapters 5they

&hapter 97 Introd/ction

Introd/ction to the st/dy3 Literat/re "e6iew3 State0ent o1 the proble0 3 #bjecti6es o1 the St/dy3

Scope o1 the st/dy 3 "esearch $ethodolo4y 3 Li0itations o1 the st/dy5

15 | P a g e



&hapter @7 !ro1ile o1 the st/dy

Ind/stry !ro1ile7 SHG

&hapter ;7 *heoretical perspecti6es

*his chapter consists o1 the theoretical 1ra0e work5 It incl/des the detailed description abo/t the

topic

&hapter7 = Analysis and Interpretation

Graphs showin4 the rate o1 respondents perception and ?pectation towards SHG5

&hapter7 'indin4s

'indin4s are drawn 1ro0 the 4raphs5

&hapter7 C S/44estions

It incl/des the s/44estions to i0pro6e the o6erall SHG 0ana4e0ent

&hapter7 < &oncl/sions

16 | P a g e



CHAPTER-.

PROFILE OF THE STUDY

17 | P a g e



.+ TITLE OF THE STUDY

$icro1inance is a so/rce o1 1inancial ser6ices 1or entreprene/rs and s0all b/sinesses lackin4

access to bankin4 and related ser6ices5 *he two 0ain 0echanis0s 1or the deli6ery o1 1inancial

ser6ices to s/ch clients are7

%9( relationship-based bankin4 1or indi6id/al entreprene/rs and s0all b/sinesses and

%@( 4ro/p-based 0odels3 where se6eral entreprene/rs co0e to4ether to apply 1or loans and other

ser6ices as a 4ro/p5

Sel1 Help Gro/ps %SHGs( are beco0in4 one o1 the best

0eans 1or the e0power0ent o1 poor wo0en in al0ost all the de6elopin4 co/ntries incl/din4

India5 Kerala is no e?ception as re4ards the role played by wo0enEs collecti6es3 known by

di11erent na0es 1or e0ancipation and e0power0ent o1 poor wo0en5 *he NG#s who are in the

1ield o1 socio-econo0ic de6elop0ent o1 the 0ar4inalised sections in the society since last 1o/r to

1i6e decades3 had initially or4anised &redit ,nions and $ahila Sa0aja0s 1or better participation

o1 people in de6elop0ent initiati6es and also 1or thri1t and credit 1acilities5 Since the e0er4ence

o1 SHG syste03 as per the initiati6es o1 National Bank 1or A4ric/lt/re and "/ral .e6elop0ent

%NABA".(3 and directi6es 1ro0 "eser6e Bank o1 India %"BI(3 1ro0 the be4innin4 o1 9Fs3

18 | P a g e



0ost o1 these $ahila Sa0aja0s and &redit ,nions ha6e been con6erted into SHGs3 linked the0

to 1inancial instit/tions 1or better credit 1acilities5

Sel1 Help Gro/ps were or4aniDed /nder the initiati6es o1 the National Bank 1or A4ric/lt/re and

"/ral .e6elop0ent MNABA". and the directions o1 the "eser6e Bank o1 India5 !ro0oted by

the 4o6ern0ents as well as non-4o6ern0ental or4aniDations3 it is 4ro/p o1 r/ral poor3 partic/larly

wo0en3 who ha6e 6ol/nteered to or4aniDe the0sel6es into a 4ro/p 1or eradication o1 po6erty o1

the 0e0bers thro/4h collecti6e internal sa6in4s and access to e?ternal credit5 Access to e?ternal

credit is achie6ed thro/4h SHG-bank linka4e3 based on 4ro/p solidarity instead o1 1or0al

collateral

,nder the SHG-bank linka4e pro4ra00e3 each sel1-help 4ro/p is linked with a bank a r/ral3

co-operati6e or co00ercial bank where the 4ro/p acco/nt is 0aintained5 #6er ti0e the bank

be4ins to lend to the 4ro/p as a /nit3 witho/t collateral3 relyin4 on sel1-0onitorin4 and peer-

press/re within the 4ro/p 1or repay0ent o1 these loans5

*hese linka4es were desi4ned not j/st as a strate4y 1or po6erty alle6iation thro/4h 1inancial

e0power0ent3 as was earlier pointed o/t5 It was desi4ned to be a 6ehicle by which r/ral wo0en

co/ld achie6e social3 personal and political e0power0ent as well5 I0pro6e0ents in con1idence

le6els3 independence3 0obility3 decision-0akin4 capability and increased acceptance within the

1a0ily were considered to be pointers towards personal e0power0ent5 It was also anticipated

that the r/ral wo0en co/ld acco0plish social e0power0ent thro/4h 0icro 1inance3 epito0iDed

by i0pro6e0ents in or4aniDational3 interacti6e and p/blic speakin4 skills3 4ro/p cohesi6eness3

increased awareness on ri4hts3 social proble0s3 increased acceptance in the society and

participation in social acti6ities5 "/ral wo0en can s/ccess1/lly e0power the0sel6es a4ainst

social e6ils like alcoholis03 do0estic 6iolence3 ab/se and e?ploitation3 4ender bias and social

e?cl/sion5

*he po6erty eradication 0ission o1 state o1 Kerala is a co00/nity based sel1 help initiati6e

in6ol6in4 poor wo0en5 It has en6isa4ed as an approach to po6erty alle6iation 1oc/sin4 pri0arily

on 0icro-1inance and 0icro enterprise de6elop0ent3 and inte4rally linked to local sel1

4o6ern0ent instit/tion 5National Bank o1 a4ric/lt/ral and "/ral .e6elop0ent %NABA".(

19 | P a g e



initiated wo0ens Sel1 Help Gro/ps %SHGs( in India with s/pport o1 Non Go6ern0ental

#r4aniDation %NG#s(5

%http788en5wikipedia5or48(

.+ HISTORY OF MICROFINANCE

The histry " micr4#a#ci#g ca# 2e traced 2ac5 as !#g t the midd!e " the

8B<<s whe# the therist Lysa#der %p#er was writi#g 3er the 2e#e4ts

"rm sma!! credits t e#trepre#eurs a#d "armers as a way getti#g the pep!e

ut " p3erty. 'ut it was at the e#d " /r!d /ar (( with the Marsha!! p!a#

the c#cept had a# 2ig impact.

The tday use " the epressi# micr4#a#ci#g has it rts i# the 8:@<s

whe# rga#iCati#s, such as Gramee# 'a#5 " 'a#g!adesh with the

micr4#a#ce pi#eer Mhammad u#us, where starti#g a#d shapi#g the

mder# i#dustry " micr4#a#ci#g. A#ther pi#eer i# this sectr is A5htar

Hameed Kha#. At that time a #ew wa3e " micr4#a#ce i#itiati3es i#trduced

ma#y #ew i##3ati#s i#t the sectr. Ma#y pi#eeri#g e#terprises 2ega#

eperime#ti#g with !a#i#g t the u#derser3ed pep!e. The mai# reas# why

micr4#a#ce is dated t the 8:@<s is that the prgrams cu!d shw that

pep!e ca# 2e re!ied # t repay their !a#s a#d that its pssi2!e t pr3ide

4#a#cia! ser3ices t pr pep!e thrugh mar5et2ased e#terprises withut

su2sidy. %hre2a#5 was the 4rst micr4#a#ce a#d cmmu#ity de3e!pme#t

2a#5 "u#ded 8:@7 i# +hicag

A# ec#mica! histria# at a!e #amed Timthy Gui##a#e has 2ee# di#gsme research # riedrich /i!he!m Raieise#s 3i!!age 2a#5 m3eme#t i#

Germa#y which started i# 8B>7 a# 2y the year 8:<8 the 2a#5 had reached

;mi!!i# rura! "armers. Timthy Gui##a#e mea#s that a!ready the# it was

pr3ed that micrcredit cu!d pass the tw tests c#cer#i#g pep!es

20 | P a g e



pay2ac5mra! a#d the pssi2i!ity t pr3ide the 4#a#cia! ser3ice t pr

pep!e.

A#ther rga#iCati#, The caisse ppu!aire m3eme#t gru#ded 2y A!ph#e

a#d Drim#e Desardi#s i# ue2ec , was a!s c#cer#ed a2ut the p3erty,

a#d passed thse tw tests. 'etwee# 8:<< t 8:<> whe# they "u#ded the

4rst caisse, they passed a !aw g3er#i#g them i# the ue2ec assem2!y , they

ris5ed their pri3ate assets a#d must ha3e 2ee# 3ery sure a2ut the idea

a2ut micrcredit.

Tday the /r!d 'a#5 estimates that mre tha# 8> mi!!i# pep!e are ser3ed

2y sme @<<< micr4#a#ce i#stituti#s a!! 3er the wr!d. +GAP eperts

mea#s that a2ut =<< mi!!i# "ami!ies 2e#e4ts "rm these sma!! !a#s

ma5i#g #ew 2usi#ess pssi2!e. (# a gatheri#g at a Micrcredit %ummit i#

/ashi#gt# D+ the ga! was reachi#g 8<< mi!!i# " the wr!ds prest

pep!e 2y credits "rm the wr!d !eaders a#d mar 4#a#cia! i#stituti#s.

The year ;<<= was prc!aimed as the (#ter#ati#a! year " Micrcredit 2y The

)c#mic a#d %cia! +u#ci! " the 0#ited Nati#s i# a ca!! "r the 4#a#cia!

a#d 2ui!di#g sectr t $"ue! the str#g e#trepre#euria! spirit " the prpep!e aru#d the wr!d.

The (#ter#ati#a! year " Micrcredit c#sists " 43e ga!s6

Assess a#d prmte the c#tri2uti# " micr4#a#ce t the M(s

Ma5e micr4#a#ce mre 3isi2!e "r pu2!ic aware#ess u#d u#dersta#di#g as

a 3ery imprta#t part " the de3e!pme#t situati#

The prmti# shu!d 2e i#c!usi3e the 4#a#cia! sectr

Ma5e a supprti#g system "r sustai#a2!e access t 4#a#cia! ser3ices

21 | P a g e



%upprt strategic part#erships 2y e#curagi#g #ew part#erships a#d

i##3ati# t 2ui!d a#d epa#d the utreach a#d success " micr4#a#ce "r

a!!

The ec#mics pr"essr Mhammad u#us a#d the "u#der " Gramee#

'a#5 were awarded the N2e! PriCe ;<<> "r his erts. The press re!ease

"rm #2e!priCe.rg states6

$The Nrwegia# N2e! +mmittee has decided t award the N2e! Peace

PriCe "r ;<<>, di3ided i#t tw eEua! parts, t Muhammad u#us a#d

Gramee# 'a#5 "r their erts t create ec#mic a#d scia! de3e!pme#t

"rm 2e!w. Lasti#g peace ca# #t 2e achie3ed u#!ess !arge ppu!ati#

grups 4#d ways i# which t 2rea5 ut " p3erty. Micr&credit is #e such

mea#s. De3e!pme#t "rm 2e!w a!s ser3es t ad3a#ce demcracy a#d

huma# rights. Muhammad u#us has shw# himse!" t 2e a !eader wh has

ma#aged t tra#s!ate 3isi#s i#t practica! acti# "r the 2e#e4t " mi!!i#s

" pep!e, #t #!y i# 'a#g!adesh , 2ut a!s i# ma#y ther cu#tries. La#s t

pr pep!e withut a#y 4#a#cia! security had appeared t 2e a# impssi2!e

idea. rm mdest 2egi##i#gs three decades ag, u#us has, 4rst a#d

"remst thrugh Gramee# 'a#5, de3e!ped micr&credit i#t a# e3er mre

imprta#t i#strume#t i# the strugg!e agai#st p3erty. Gramee# 'a#5 has

2ee# a surce " ideas a#d mde!s "r the ma#y i#stituti#s i# the 4e!d "

micr&credit that ha3e spru#g up aru#d the wr!d.

)3ery si#g!e i#di3idua! # earth has 2th the pte#tia! a#d the right t !i3e a

dece#t !i"e. Acrss cu!tures a#d ci3i!iCati#s, u#us a#d Gramee# 'a#5 ha3e

shw# that e3e# the prest " the pr ca# wr5 t 2ri#g a2ut their w#

de3e!pme#t.

Micr&credit has pr3ed t 2e a# imprta#t !i2erati#g "rce i# scieties where

wme# i# particu!ar ha3e t strugg!e agai#st repressi3e scia! a#d ec#mic

c#diti#s. )c#mic grwth a#d p!itica! demcracy ca# #t achie3e their

"u!! pte#tia! u#!ess the "ema!e ha!" " huma#ity participates # a# eEua!

22 | P a g e



"ti#g with the ma!e.

u#uss !#g&term 3isi# is t e!imi#ate p3erty i# the wr!d. That 3isi# ca#

#t 2e rea!ised 2y mea#s " micr&credit a!#e. 'ut Muhammad u#us a#d

Gramee# 'a#5 ha3e shw# that, i# the c#ti#ui#g erts t achie3e it,

micr&credit must p!ay a mar part.

*http6QQe#.wi5ipedia.rgQ-

.+. ADVANTAGE OF MICROFINANCE

$icro1inancin4 prod/ces 0any bene1its 1or po6erty stricken3 or low- inco0e ho/seholds5 #ne o1

the bene1its is that it is 6ery accessible5 Banks today si0ply wont e?tend loans to those with

little to no assets3 and 4enerally dont en4a4e in s0all siDe loans typically associated with

0icro1inancin45 *hro/4h 0icro1inancin4 s0all loans are prod/ced and accessible5

$icro1inancin4 is based on the philosophy that e6en s0all a0o/nts o1 credit can help end the

cycle o1 po6erty5 Another bene1it prod/ced 1ro0 the 0icro1inancin4 initiati6e is that it presents

opport/nities3 s/ch as e?tendin4 ed/cation and jobs5 'a0ilies recei6in4 0icro1inancin4 are less

likely to p/ll their children o/t o1 school 1or econo0ic reasons5 As well3 in relation to

e0ploy0ent3 people are 0ore likely to open s0all b/sinesses that will aid the creation o1 new

jobs5 #6erall3 the bene1its o/tline that the 0icro1inancin4 initiati6e is set o/t to i0pro6e the

standard o1 li6in4 a0on4st i0po6erished co00/nities

.+, INDUSTRY PROFILE

MICRO FIANANCE SCHEMES

6en tho/4h there are 0any a4encies operatin4 in the 1ield o1 credit the

poorest a0on4 poor who need loans o1 6ery s0all a0o/nt 4o to pri6ate 0oneylenders3 since

their re2/ire0ent is 2/ick deli6ery o1 loan at their door steps5*he intentions o1 the 0oney lenders

ha6e been to e?ploit the poor instead o1 helpin4 the0 and this rather worsened pli4ht o1 the poor5

*he poor ha6e de0onstrated their potential 1or Sel1-help to sec/re 4reater econo0ic and

1inancial stren4th and 0any sel1-help 4ro/ps ha6e co0e into e?istence spontaneo/sly or with

23 | P a g e



acti6e in6ol6e0ent o1 Non Go6ern0ental #r4aniDation %NG#s(5NG#s3 beyond do/bt co/ld do

0/ch to i0pro6e the inco0e o1 the poor and their 1a0ilies5

$icro credit 1inancin4 in si0ple ter0s can be de1ined as 1inancin4 $icro credit needs o1 the

poor5 *he principles /nder linin4 $icro &redit 1inance are7

It sho/ld be easily a6ailable witho/t any co0plications o1 len4thy and ti0e cons/0in4

identi1ication and doc/0entation5 It sho/ld be a6ailable at the re2/ired ti0e and place so that 6al/able ti0e is not lost 1or takin4

care o1 s0all needs o1 /ser bene1iciaries and /ser bene1iciaries not thrown into the 0oney

lenders cl/tches5 It sho/ld be a6ailable at an a11ordable rate o1 interest to the Sel1-Help Gro/ps and at a 0arket

dri6en rate to the /ser bene1iciary so that sel1-help 4ro/p can b/ild /p a reser6e and /ser

bene1iciary de6elops repay0ent habit and discipline5 *he $icro &redit 'inancin4 will always ha6e to work thro/4h the a4ency o1 a sel1-help

4ro/p8Non-Go6ern0ental or4aniDation which acts as the co-ori4inator and the inte4rator a0on4

the di11erent 0e0bers o1 the sel1-help 4ro/p and takes collecti6e responsibility 1or satis1actory

credit and repay0ent 0ana4e0ent5

SELF-HELP GROUPS

A sel1-help 4ro/p can be de1ined as a s0all%not 0ore than @F(0e0bers econo0icallyho0o4eneo/s3 socially cohesi6e 4ro/p o1 r/ral and /rban poor who ha6e 6ol/ntarily co0e

to4ether 1or their indi6id/al and collecti6e econo0ic /pli1t0ent as the 0ain 1oc/s5

SHG is a ho0o4eneo/s 4ro/p o1 0icro entreprene/rs with a11inity a0on4 the0sel6es3

6ol/ntarily 1or0ed to sa6e whate6er a0o/nt they can con6eniently sa6e o/t o1 their earnin4s and

0/t/ally a4ree to contrib/te to a co00on 1/nd o1 the 4ro/p 1ro0 which s0all loans are 4i6en to

the 0e0bers 1or 0eetin4 their5

SHG will e0power the econo0ic back4ro/nd o1 socially and econo0ically

back4ro/nd people5*here will be a social trans1or0ation o/t o1 this 0icro1inance /nit5 *he

peoples inco0e le6el can be an /pli1ted so as to enhances there standard o1 li6in45 It creates a

/ni2/e social c/lt/re o1 corporation and also inc/lcate bank habits a0on4 the people5

Section o1 Sel1-help 4ro/ps 1or e?tendin4 $icro credit 'inancin47

24 | P a g e



In order to ens/re that $icro &redit 'inancin4 ser6es the objecti6es 1or which it is

i0ple0ented3 ri4oro/s criteria o1 selectin4 sel1-help 4ro/ps 1or 4i6in4 the0 credit 1or onward

lendin4 to indi6id/al 0e0bers3 are absol/tely essential5

*he 1ollowin4 4/idelines are hereby iss/ed 1or selectin4 the sel1-help 4ro/ps 1or the p/rpose o1

4i6in4 the0 credit 1or $icro &redit 'inancin4 acti6ity5

a5 *he 4ro/p sho/ld ha6e been 1or0ed at least one year back i5e it sho/ld co0pleted one year 1ro0

the date o1 its 1or0ation5

b5 *he 4ro/p sho/ld ha6e been cond/ctin4 re4/lar 0eetin4s and 0aintain the records o1 its

proceedin4s5 It is di11ic/lt to en1orce a strict ti0e 1ra0e 1or de1inin4 re4/larity b/t in 4eneral3 a

0eetin4 once e6ery 1o/r 0onths or earlier will be considered as “0eetin4 re4/larly cond/ctedO5c5 *he 4ro/p 0e0bers sho/ld ha6e been doin4 re4/lar sa6in4s5 *he re4/larity o1 sa6in4s is to be

j/d4ed with respect to ti0e-1ra0e and not to the a0o/nt o1 sa6in4s5 6ery 0e0ber indi6id/ally

and 4ro/p collecti6ely3 sho/ld ha6e been sa6in4 the a0o/nt e6ery 0onth5 #n an a6era4e3 each

0e0ber sho/ld ha6e been sa6in4 0ini0/0 "s5;F8-per 0onth with an o6erall 6ariation o1 9F5

d5 *he 4ro/p 0/st ha6e 0ade e11orts 1or collecti6e decision 0akin4 in its 0eetin4 and it can be

j/d4ed by the record o1 proceedin4 0aintained by the 4ro/p5

e5 *he 4ro/p sho/ld ha6e a 0aintained its acco/nts in a si0ple and transparent 0anner5 It sho/ld be

ens/red that the 4ro/ps acco/nts are 0aintained by one o1 its 0e0bers alone and not by an

o/tsider8Acco/ntant etc5

15 I1 the 4ro/p has already taken /p lendin4 acti6ity3 the repay0ent sho/ld be 0ini0/0 :F as per

the repay0ent sched/le5

45 *he 4ro/p sho/ld ha6e been pre1erably re4istered /nder any o1 the e?istin4 laws or r/les 1or the

p/rpose or it sho/ld ha6e articles o1 association de1inin4 its acti6ities5

h5 *he 4ro/p leadership ha6e been elected by the 0e0bers either thro/4h a process o1 de0ocratic

election or thro/4h a process o1 consens/s i5e53 it sho/ld not be 1orced leadership5i5 *he 0e0bers o1 the 4ro/p incl/din4 its leaders sho/ld not ha6e acti6e political a11iliation5

j5 *he 4ro/p nor0ally sho/ld not e?ceed twenty 0e0bers and sho/ld not be less than ten

0e0bers5

k5 *he 4ro/p 0/st ha6e an operatin4 acco/nt in any o1 the Bank branches 1or transactin4 all their

1inancial transactions3 which co/ld be either sa6in4s or borrowin4s or pay0ents5

l5 *he 4ro/p sho/ld not ha6e /sed its sa6in4s 1or co00ercial borrowin4s to any non-0e0ber

since its 1or0ation5

05 *he 4ro/p sho/ld be carryin4 o/t only socio econo0ic acti6ities 1or the wel1are o1 its own

0e0bers or 1or co00/nity as a whole and in no way sho/ld be takin4 part in any other acti6ity5

25 | P a g e



n5 *he e?istin4 4ro/ps which 1/l1ill the abo6e criteria shall also be eli4ible 1or $icro &redit

assistance5o5 *he 4ro/ps ha6in4 0e0bers below the po6erty line sho/ld be 4i6en pre1erence 1or e?tendin4

assistance /nder $icro &redit and only a1ter the 4ro/ps below the po6erty line %B!L( are

e?ha/sted3 the 4ro/ps below do/ble the po6erty line will be eli4ible 1or assistance5

.+,+ MICRO CREDIT UNIONS

*he concept o1 sel1-help and 0/t/al help e?isted in o/r co/ntry prior to any or4anised or 1or0al

1or0 o1 sel1-help and 0/t/al help5 *he history o1 or4aniDed sel1-help and 0/t/al help 0ay be

traced back to the ori4in o1 the concept o1 credit /nions5 *he concept o1 credit /nions was a

de6elop0ent in the 1ield o1 thri1t and credit5 A credit /nion is a 4ro/p o1 people who join to4ether

to sa6e 0oney and to 0ake a6ailable loans to each other at a low rate o1 interest5 A credit /nionis a 1inancial co-operati6e or4aniDed by a 4ro/p o1 people with a shared 1ield o1 0e0bership5

*he ori4in o1 1or0al credit /nions is 1ro0 Ger0any towards the 0iddle o1 the 9 th cent/ry5

6en be1ore the 1or0al credit /nion ca0e to India3 by the 1irst hal1 o1 twentieth cent/ry3 there

e?isted di11erent kinds o1 s/ch in1or0al syste0s centered aro/nd reli4io/s instit/tions3 thro/4h

which the poor were enco/ra4ed the habit o1 sa6in4s to 0eet so0e /r4ent needs o1 the 1a0ily5 As

1ar as Kerala is concerned3 there e?isted >K/ri>3 >!ayatt/> and >&hitti> since lon4 a4o3 in

di11erent 1or0s at di11erent re4ions3 1or petty 1a0ily cons/0ption /tility3 as well as 1or 0ajor

in6est0ents in inco0e-4eneration acti6ities5 *he concept o1 1or0al credit /nion was 6ery well

accepted by the Non-Go6ern0ental #r4aniDations in Kerala3 en4a4ed in social wel1are3 social

ser6ices3 and social de6elop0ent 1ields5 *he reli4io/s instit/tion-based in1or0al syste0s were

stren4thened and 0er4ed into the 1or0al syste03 like credit /nions5

%$icro credit 4/ideline @F9;-@F9=(

.+,+. ROLE OF NON-GOVERNMENTALORGANIZATION

*he non-Go6ern0ental #r4aniDation %NG#s( acts as a linka4e between the $icro1inance and the

poor people by 6irt/e o1 their spread in the operational area and rapport with the people5 *he

NG#s a1ter pro6ided with credit by the $icro1inance can 1inance the poor people thro/4h sel1-

help 4ro/ps5 *he e?perience in $icro &redit all o6er the world has established that non-

4o6ern0ental or4aniDations act as /se1/l inter0ediary between 1/ndin4 a4encies and poor

26 | P a g e



people5 In 6iew o1 the abo6e position3 the non-4o6ern0ental or4aniDations are also channeliDed

to i0ple0ent the $icro &redit 'inancin4 1or backward classes80inorities in the state in the sense

that sel1-help 4ro/ps will pro6ide the0 1/nds 1or e?tendin4 $icro &redit to poor people5

%$icro credit 4/ideline @F9;-@F9=(

.+,+, ACTIVITIES TO BE UNDERTAKEN BY THE NGO5=

a( *he NG#s 0ay i0ple0ent the $icro &redit Sche0e by pro0otin4 Sel1 Help Gro/ps %SHG(5It

wo/ld be pre1erable to ha6e non-1or0al 4ro/ps by the borrowers to si0pli1y the proced/res5

b( S/b0ission o1 proposal 1or e?tendin4 credit 1acility 4i6in4 details or area o1 operation3 n/0ber

o1 sel1-help 4ro/ps and bene1iciaries proposed to be co6ered3 a0o/nt o1 credit re2/ired3 the 1ield

0achinery a6ailable 1or i0ple0entation etc5c( *he Articles o1 Association o1 the SHG sho/ld speci1ically indicate whether they belon4 to

Backward &lasses8$inorities and li6in4 below do/ble the po6erty line5

d( Identi1ication o1 sel1-help 4ro/ps8indi6id/al bene1iciaries whate6er is applicable 1or e?tendin4

$icro credit 'inancin4 %a1ter appro6al o1 proposal as s/b0itted at %a( abo6e and 1i?ation o1

credit li0it as 0entioned in ne?t !ara(5

e( Gi6in4 orientation trainin4 to the abo6e identi1ied sel1-help 4ro/ps8indi6id/al bene1iciaries51( &o0pletin4 doc/0entation prior to e?tendin4 credit to credit to sel1-help 4ro/ps8indi6id/al

bene1iciaries and these doc/0ents will be entered into between SHG3 and other NG#5

4( ?tension o1 credit is s/bject to the re2/ire0ents as already 0entioned /nder criteria-Selection

o1 sel1-help 4ro/ps 1or e?tendin4 $icro &redit 'inancin4 1ro0 %i( to %?6i( and the NG# shall

ens/re co0pliance o1 these %where pro4ra00e is i0ple0ented thro/4h sel1 help 4ro/ps(5h( S/b0ission o1 0onthly in1or0ation in prescribed pro1or0a5

NG#s sho/ld s/b0it the application in the prescribed 1or0at and with the 1ollowin4

doc/0ents5

i5 Ann/al "eport 1or last three years5

ii5 &erti1ied copy o1 6alid re4istration certi1icate8renewal certi1icate5iii5 Bank acco/nt n/0ber and acco/nt details5i65 .etails o1 pro1essional people lookin4 a1ter the 1ield operations and 1inancial operations5

65 List o1 o11ice bearers with 1/ll addresses5

6i5 ,ndertakin4 that the NG# is not ha6in4 any political a11iliation etc3 alon4 with other

doc/0ents5

27 | P a g e



WOMEN IN KERALA=

Kerala is a state with se6eral achie6e0ents in the social de6elop0ent o1 wo0en and in the

balance o1 4ender stat/s has stabiliDed in 0any 1ronts5

• Kerala has a hi4h 1e0ale literary rate o1 :C5@3 a low In1ant $ortality "ate%I$"( o1 9;%a4ainst

the national a6era4e o1 :F( a 1a6orable se? ratio o1 9F;@ 1e0ale89FFF0ale3low $aternal

0ortality "ate %$$"( F5:89FFF and a hi4h li1e e?pectancy o1 <= 1e0ale8<F0ale5Howe6er the

absence o1 wo0en in the p/blic do0ain re0ains as a parado? o1 the Kerala 0odel o1

de6elop0ent5

• *he econo0ic 0ar4inaliDation o1 wo0en in the de6elop0ent process has drown considerable

attention d/rin4 recent years while the 1e0ale work participation rate in India increased 1ro0

95< to @@5< between 9:9 and 993 in Kerala the ratio declined 1ro0 9C5C to955./rin4 the sa0e period the incidence o1 /ne0ploy0ent a0on4 1e0ales in the state is

hi4her than that a0on4 0ales by ti0es in r/ral areas and ; ti0es in /rban areas5

,ne0ploy0ent in Kerala is se6ere and is esti0ated to be ; ti0es lar4er than India5

• *he 4ender-oriented di6ision o1 labo/r has res/lted in the concentration o1 wo0en in low payin4

/ or4aniDed sector s/ch as a4ric/lt/ral labo/r3 cotta4e and traditional ind/stries and selected

ser6ice sector5 .espite the power1/l trade /nion 0o6e0ents3 e2/al wa4es 1or e2/al wa4es 1or

e2/al works still re0ains a 0ira4e and 4ender discri0ination at the work place is widely

pre6alent5

• *he 0ar4inaliDation o1 wo0en in the econo0ic process and lack o1 control o6er reso/rces ha6e

been 0ajor i0pedi0ents in i0pro6in4 the stat/s o1 wo0en5

• *he 6iolence a4ainst wo0en and incidence o1 se?/al harass0ent contin/e to increase5

• .espite the 4eneral pro4ressi6e political en6iron0ent in the state3 acti6e in6ol6e0ent o1 wo0en

in 6ario/s leadership le6els is low5%$icro credit 4/ideline @F9;-@F9=(

.+,+2 WOMEN SELF-HELP EMPOWERMENT THROUGH GROUPS

In the st/dy e0power0ent o1 poor wo0en is 6iewed 1ro0 three di11erent an4les3 na0ely social3

econo0ic and political5 Social e0power0ent is 1/rther 6iewed 1ro0 indi6id/al3 4ro/p and

co00/nity le6els5 0power0ent at indi6id/al le6el is assessed by the increase in knowled4e3

skills and attit/de e11ectin4 in better sel1estee0 and sel1-con1idence5 .ecision-0akin4 was one o1

the 0ost i0portant aspects looked into while st/dyin4 the SHGs and e0power0ent o1 wo0en

28 | P a g e



thro/4h SHGs5 *he decision 0akin4 process was looked into 1ro0 two an4les3 na0ely within the

1a0ily and in the 4ro/p5 *his st/dy looked into the chan4e that has happened in the decision

0akin4 process within the 1a0ily a1ter the respondents beca0e the 0e0ber o1 SHGs5 *here was

a 6isible chan4e that has occ/rred in the le6el o1 participation o1 wo0en in the decision 0akin4

process within the 1a0ily5 As 1ar as health care and decision on 0en/ the chan4e was 1o/nd 0ore

a0on4 0e0bers o1 NG#s3 while re4ardin4 the ed/cation o1 children respondents 1ro0

K/d/0basree e?perienced 4reater chan4e5 *o4ether with participation in decision0akin4 another

i0portant aspect was the 1reedo0 o1 wo0en as 1ar as 0obility was concerned5 "e0arkable

chan4e has happened re4ardin4 0obility o1 wo0en - incl/din4 wo0en 4oin4 o/t 1or attendin4

0eetin43 classes3 se0inars3 trainin4 pro4ra00e3 and 6ario/s other 1/nctions o1 the SHG -

in6est0ent and credit /tiliDation were concerned5

.e6elop0ent o1 a nation cannot be separated 1or0 or 6iewed in

isolation 1ro0 the de6elop0ent o1 wo0en who constit/te hal1 o1 the world pop/lation and who

can certainly play a critical role in in1l/encin4 the co/rse o1 h/0an history as well as shapin4 the

destiny o1 0ankind5 ,n1ort/nately in e6ery society 4ender contin/es to be a power 1/ll barrier in

assertin4 the ri4hts3 capabilities and opport/nities o1 wo0en thro/4ho/t li1e5 $any o1 the le4al

pro6isions 1or e2/ality are con1ined to paper5 #/r co/ntry is noted 1or its c/lt/ral herita4e3

respect 1or traditional 6al/es and hono/r 1or wo0en3 b/t is still lar4ely 0ale do0inated where

wo0en are 0iserably looked down /p on5 No do/bt wo0en do ha6e their inherent weaknesses d/e to the d/al

responsibility both at ho0e and their work place5 B/t the lots o1 creati6ity in her work which is

an innate trait o1 wo0en and the inborn talents and potentials with in her are /nor4aniDed and

/n/tiliDed in a patriarchal society5 *heir lower stat/s in society 0akes the0 easier 6icti0s o1

po6erty as they do not ha6e d/e control o6er reso/rces neither as owner nor as /ser5 Besides the

/pbrin4in4 o1 wo0en in shadow in 1ear and 6iolence hinder their nat/ral 4rowth and con6ert

the0 into passi6e 6icti0s in a 0ale do0inated society5

Any atte0pt to i0pro6e the stat/s o1 wo0en sho/ld start with

e0power0ent5 0power0ent i0plies the creation o1 an enablin4 en6iron0ent were indi6id/als

can 1/lly /se their li6es5 *he p/rpose o1 e0power0ent is to 1ree so0eone 1ro0 ri4oro/s control

to 4i6e the0 1reedo0 to take their responsibility 1or their own ideas and action to realiDe hidden

reso/rces which wo/ld otherwise re0ain inaccessible5

29 | P a g e



*he history o1 India shows 6ario/s /p and downs in the stat/s o1

wo0en in post independent India3 the ed/cation and e0ploy0ent o1 wo0en ha6e played a

si4ni1icant role in chan4in4 the traditional attit/de towards within the 1a0ily and society3 the

4o6ern0ent3 thro/4h its ind/strial policy econo0ic de6elop0ent5 Se6eral sche0es 1or the

e0power0ent o1 wo0en in r/ral areas ha6e been i0ple0ented thro/4h 4o6ern0ent a4encies and

1inancial instit/tion5

%$icro credit 4/ideline @FF;-@FF=(

.+2 BANK LINKAGE PROGRAMME

Banks are ad6ised thro/4h "BI 4/idelines to lend /p to "s-lakhs to SHGs witho/t any

collateral Sec/rities5In addition to the loans 1ro0 their own sa6in4s3 NHGs are 1acilitated to a6ail

loan 1ro0 bank thro/4h bank linka4e pro4ra00e5NABA". has de6eloped 1ollowin4 is point

inde? 1or ratin4 NHGs on the basis o1 which they will be allowed to link with 6ario/s banks

/nder the linka4e bankin4 sche0e5

• Str/ct/re o1 SHG

• !eriod o1 operation

• N/0ber o1 0eetin4 held

• Attendance in 0eetin4

• "ecordin4 o1 0in/tes

•

!articipation in disc/ssion• !ro0otion o1 thri1t

• *hri1t acco/ntin4

• .ecision 0akin4

• Loan sanctionin4 proced/re

• "ate o1 interest barred

• )elocity o1 lendin4

• !ercenta4e o1 repay0ent

• $aintenance o1 records and re4isters

• Byelaw

#n the basis o1 so0e objecti6es and identi1iable para0eters3 e11iciency and e11ecti6eness o1

NHGs can be 6eri1ied5 Gro/p can recei6e 1inance in the ratio rankin4 1ro0979 to 97 thro/4h

bank linka4e pro4ra00e5*he 1/nd can be /tiliDed by the 4ro/ps 1or internal leadin4 and settin4

/p o1 0icro enters prices5

30 | P a g e



*hro/4h the linka4e bankin4 "s-=FC5<9 lakhs is 4i6en to @<:

NHGs in the state as on $arch @FF:5It is interestin4 to note that o/t o1 9:;;F NHGs only

@<: ha6e a6ailed bank linked credit5OInterestin4ly C percent4e o1 NHG do not take bank

linked credit in Kerala the bank linked 1or0s only @9 o1 the thri1t creditO5*his shows that a

si4ni1icant share o1 credit needs o1 poor wo0en are 0et 1ro0 their own pooled sa6in4s5

A 6ol/nteer who is selected 1ro0 each &.S 4ets trained to

0onitor linka4e bankin4 acti6ities5*his 6ol/nteer 0aintains the details o1 application 1orwarded

to 6ario/s banks in co0p/ters and liaison with 6ario/s banks operatin4 in the j/risdiction5*he

ad6anta4e o1 this syste0 is proper 0onitorin4 o1 all the linka4e bankin4 acti6ities especially

ti0ely repay0ent5


.+2 PROCEDURE OF SHG-BANK LINKAGE PROGRAMME

,nder the SHG-Bank Linka4e !ro4ra00e3 the SHGs8NHGs are linked with the banks and the

0e0bers can a6ail 1inancial assistance at a low rate o1 interest with o/t any collateral sec/rity

which helps the poor to 4et 1/nds 1or 6ario/s p/rposes incl/din4 the settin4 /p o1 $icro

nterprises or IGAs5 *he linkin4 bank 6eri1ies the e11iciency and e11ecti6eness o1 the NHGs on

the basis o1 6eri1iable and easily identi1iable para0eters5 NABA". has de6eloped a 9 point

inde? 1or ratin4 NHGs5 *he 4ro/p sho/ld ha6e been in e?istence 1or at least C 0onths and scored

9@F89F 0arks 9F; based on its e6al/ation criteria5 #n the basis o1 which they will be allowed to

link with 6ario/s banks /nder the Linka4e Bankin4 Sche0e5 Banks 0ay lend directly to SHGs or

thro/4h b/lk lendin4 to NG#s 1or lendin4 to 4ro/ps5 I1 lendin4 is directly 1ro0 banks to the

4ro/ps3 the 2/ant/0 o1 credit 4i6en to the 4ro/ps sho/ld be in proportion to the sa6in4s

0obiliDed by the 4ro/ps5 Sa6in4s credit ratio 0ay be 97 @ initially which can be raised to 97 =

dependin4 on the con1idence 4ained by the bank5 *he assistance so recei6ed can be /tiliDed by

the 4ro/ps 1or internal lendin4 and takin4 /p o1 $icro nterprises or Inco0e Generatin4

Acti6ities5


.+2+. ADVANTAGES OF BANK LINKAGE PROGRAMME

31 | P a g e



*he SBL !ro4ra00e has pro6ed its e11icacy as a 0ainstrea0 !ro4ra00e 1or bankin4 with the

poor5 SHG-Bank Linka4e !ro4ra00e is ad6anta4eo/s to banks3 Sel1 Help Gro/ps and also

NG#s5 *he 0ain ad6anta4es o1 the !ro4ra00e are as 1ollows5

Ad6anta4es to bank7

a5 $obilisation o1 s0all sa6in4s5 b5 *he proble0 o1 dealin4 e11iciently and econo0ically with a lar4e

n/0ber o1 s0all borrowers is o6erco0e thro/4h Sel1 Help Gro/ps5

c5 As the task o1 assessin4 indi6id/al credit needs3 sanctionin43

s/per6isin4 credit and 0onitorin4 repay0ent are e?ternaliDed3 the transaction cost considerably

red/ced and3 d5 Ass/red and ti0ely repay0ent beca/se o1 4ro/p s/per6ision3 which

leads to 1aster recyclin4 o1 1/nds5

Ad6anta4es to SHGs7

a5!ro6ide door-steps sa6in4 and credit 1acility 1or the poor b5*hey enjoy total a/tono0y in thri1t and credit 0ana4e0ent

c5 Access to lar4er a0o/nt o1 1/nds5 d5Stri6e 1or 4rad/al i0pro6e0ent in the econo0ic stat/s o1 each 0e0ber

e5 !ro0otin4 SHG 0e0bers as well as 2/ality 0icro enterprises5

15 Leadin4 to e0power0ent o1 the poor5!hases o1 SHG Bank Linka4e !ro4ra00e7

*he SHG Bank Linka4e !ro4ra00e has passed thro/4h 6ario/s phases o6er

the last one and a hal1 decade3 6iD5 I5 !ilot testin4 d/rin4 9@ to 9

II5 $ainstrea0in4 d/rin4 9C to 9: and

III5 ?pansion 1ro09: onwards *he !ro4ra00e has now ass/0ed the 1or0 o1 a $icro 'inance 0o6e0ent in

0any parts o1 the co/ntry5 *he tar4et o1 co6erin4 one third o1 the r/ral poor thro/4h linka4e o1 9

0illion SHGs to be achie6ed by @FF< was realiDed 0/ch ahead by the end o1 $arch @FF= %"BI

@FF<(5

!artner A4encies o1 SHG-Bank Linka4e !ro4ra00e7

a(&o00ercial Banks7

*he SHG-Bank Linka4e !ro4ra00e beco0es a part o1 b/siness o1 all the @<

p/blic sector banks and @; pri6ate sector banks5 State Bank o1 India linked the hi4hest n/0ber o1

SHGs d/rin4 @FFC-@FF<3 1ollowed by Indian Bank and &anara Bank %NABA". @FF<(5 *he

32 | P a g e



pri6ate sector banks which si4ni1icantly s/pported SHG 1inancin4 were I&I&I Bank and )ysya

Bank 1ollowed by .hanalaks0i Bank5

b( "e4ional "/ral Banks7

*he ""Bs 1inanced SHGs in a 6ery si4ni1icant way d/rin4 the period @FF9-

@FFC5 All the 9C ""Bs in the co/ntry participated in the SHG-Bank Linka4e !ro4ra00e d/rin4

the year @FF=-@FF5 ./rin4 the year @FFC3 only 9: ""Bs participated in the !ro4ra00e and

d/rin4 @FF<3 the n/0ber red/ced to C5

c( &o-operati6e Banks7

&o-operati6e Banks3 tho/4h co0parati6ely late starters3 ha6e be4an 0akin4

1orays into the $icro 'inance sector on a lar4e scale5 *he a0end0ent 0ade by 0any o1 the

states in their &o-operati6e Societies Act enables &o-op5 Banks to take /p the acti6ity o1

pro0otion and n/rt/rin4 o1 SHGs5 ./rin4 the year @FFF-@FF9 only = &o-op5 Banks in the

co/ntry participated in SHG-Bank Linka4e in the !ro4ra00e5 ./rin4 the year @FFC-@FF<3 ;@

&o-op5 Banks participated in 99 @ SHG-Bank Linka4e !ro4ra00e5

33 | P a g e



Chapter- 3

Ther!t!"a# Per$pe"t!%e

,+ SHG -&a4?-'4?a6e 3"!6"a$

(t is 2y gi#g thrugh the eisti#g 2dy " 5#w!edge it is c!ear that themicr4#a#ce p!ay a 3ery imprta#t r!e i# the 4#a#ce sectr i#dustry a#d

ec#mics. The pr, especia!!y the rura! cmmu#ity, has "u#d it etreme!y

diFcu!t t !cate a!ter#ate surces " i#cme a#d emp!yme#t pprtu#ities,

i# the wa5e " their i#adeEuate 4#a#cia! credi2i!ity. 'ut the rece#t ec#mic

perspecti3es # de3e!pme#t ha3e pi#ted twards the imprta#ce " micr

34 | P a g e



4#a#ce i# the A!appuCha district. O#e methd " access t micr 4#a#ce 2y

A!appuCha district, rura! wme# i# particu!ar, is the %e!" He!p Grup&'a#5

!i#5age prgramme, where 2a#5s pr3ide 4#a#ce t the grups "r

u#derta5i#g ec#mic acti3ities. Thus the prgramme pr3ides access t

assciati#s " rura! wme#, wh, therwise u#&u#ited, wu!d ha3e "u#d

themse!3es #t e!igi2!e "r 2a#5 4#a#ce. (t is epected that the access "

such i#stituti#a! credit wu!d 2ri#g i# scia!, pers#a! a#d 4#a#cia!

empwerme#t " rura! wme#. The prese#t paper is a# e3a!uati# " the

4#di#gs " the study u#derta5e# t re3ea! the eFcacy " %HG&2a#5 !i#5age

prgramme i# A!appuCha district.

35 | P a g e



Cha3e"- 2

A4a*5'5 a4 I4e"3"ea'!4

36 | P a g e



2+ PROFILE OF THE RESPONDENTS

*able 9

*he below table 1/rnishes the details o1 n/0ber o1 respondents in certain a4e li0its and the

respecti6e percenta4e7

A4e No o1 respondent !ercenta4e

@F-;F < <

;9-=F @C @C

=9-F ;F ;F

9-CF @: @:Abo6e CF

*otal 9FF 9FF

PSo/rce7 1ro0 the 1ield data

Interpretation7

'ro0 the abo6e data3 it is clear that the respondents between the a4e 4ro/p o1 @F-;F years and

abo6e CF years 0ake the lowest percenta4e5 *hirty per cent respondent belon4s to the a4e 4ro/p

o1 =9-F years whereas ;9-=F years and 9-CF years a4e 4ro/p 0akes a percenta4e o1 @: and @C

respecti6ely5 It can be in1erred that 0ajority o1 the respondents belon4s to the /pper a4e cate4ory

in the society3 which 0ake an o6erall := percenta4e o1 the total5

2+.RELIGION

37 | P a g e



*able @

*he below table details the n/0ber o1 respondent belon4in4 to each reli4ion and their respecti6e

percenta4e

5

"eli4ion No o1 respondent !ercenta4e

Hind/ :9 :9

$/sli0 99 99

&hristian : :

#ther F F

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e data3 it is clearly /nderstood that the respondents belon4in4 to Hind/ reli4ion

do0inates the 0ajority with a whoppin4 :9 percent whereas a 0ere 99 percent o1 respondents

belon4s to $/sli0 &o00/nity and the re0ainin4 percent represents the &hristian reli4ion5

Hence the 0ajority belon4s to Hind/ reli4ion5

2+,CASTE CATEGORY

*able ;

*able showin4 the caste cate4ory and the n/0ber o1 the respondents7

38 | P a g e



&aste &ate4ory No o1 respondent !ercenta4e

General C9 C9

#B& @C @C

S& 9@ 9@

S* 9 9

*otal 9FF 9FF PSo/rce7 1ro0 the 1ield data

Interpretation7

'ro0 the abo6e data it can be seen that C9 percent belon4 to 4eneral cate4ory3 @C percent belon4

to #B& cate4ory3 9@ percent belon4 to S& cate4ory3 and re0ainin4 belon4s to S* cate4ory5

General cate4ory 1or0s the 0ajority n/0ber o1 respondents5

CA&TE CATEGO'(

Ge#era!

O'+

%+

%T

2+2 EDUCATIONAL @UALIFICATION

*able =

*he 1ollowin4 table shows the ed/cation 2/ali1ication and n/0ber o1 the respondents in each

cate4ory5

39 | P a g e



d/cational

2/ali1ication No o1 respondent !ercenta4e

Illiterate : :

!ri0ary 9C 9C

Secondary @: @:Inter0ediate @F @F

.e4ree and abo6e @: @:

*otal 9FF 9FF


Interpretation7

#/t o1 a sa0ple o1 9FF cases3 it was 1o/nd that 0ajority o1 the respondents are ed/cated in which

@: percent belon4s to people with 2/ali1ication as de4ree or abo6e3 and a sa0e percenta4e o1

people has secondary le6el ed/cation whereas @F percent people ha6e attended the inter0ediate

le6el o1 ed/cation5 A total o1 9C percent o1 respondents ha6e basic pri0ary le6el ed/cation and

the re0ainin4 :percent was 1o/nd to be illiterate5

E)*CATIONAL +*ALI,ICATION

(!!iterate

Primary

%ec#dary

(#termediate

Degree a#d a23e

2+7 OCCUPATION

*able

*he below table details the n/0ber o1 respondent occ/pation and their respecti6e percenta4e5

#cc/pation No #1 "espondent !ercenta4e

Acco/ntant @C @C

40 | P a g e



A4ric/lt/re @ @

B/siness 9F 9F

&arpenter 9 9

Sel1-0oti6ated

,ne0ployed C C

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e 1ield data we co/ld 1i4/re o/t that 0ajority o1 the respondents ha6e no

occ/pation3 in other words C percent o1 the whole respondents are /ne0ployed5 *wenty si?

percent works as acco/ntants in 6ario/s le6els whereas 9F percent 1o/nd the0sel6es into

b/siness5 'i6e percent bein4 sel1-0oti6ated and the re0ainin4 9 percent belon4 to carpentry

works5

;>

;

8<

8=

=>

OCC*PATIONAccu#ta#t

Agricu!ture

'usi#ess

+arpe#ter

%e!"&mti3ated

u#emp!yed

2+8 MONTHLY INCOME

*able C

*he below table details the n/0ber o1 respondents 0onthly inco0e and their respecti6e

percenta4e

$onthly Inco0e No o1 "espondent !ercenta4e

Below FFF @F @F

FFF-9FFFF =< =<

41 | P a g e



9FFFF-9FFF 9= 9=

9FFF-@FFFF 99 99

$ore than@FFFF : :

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e stats it is clear that @F percent o1 the respondents 0onthly inco0e is below

FFF3 =< percent o1 the respondents 4et a 0onthly inco0e o1 FFF-9FFFF5 A 4ro/p o1 9= percent

o1 respondents recei6e a 0onthly inco0e o1 "s9FFFF-9FFF 5 *he re0ainin4 99 percent o1 the

respondents 0onthly inco0e is 0ore than @FFFF5

ONT.L( INCOE

'e!w =<<<

=<<< t 8<<<<

8<<<< t 8=<<<

8=<<<&;<<<<

Mre tha#;<<<<

2+1 MONTHLY EPENDITURE

*able <

*he below table details the n/0ber o1 respondents 0onthly e?pendit/re and their respecti6e

percenta4e

$onthly

?pendit/re No o1 "espondent !ercenta4e

Below FFF = =

FFFF-9FFFF ;F ;F

42 | P a g e



9FFFF-9FFF @F @F

$ore than 9FFF

*otal 9FF 9FF


Interpretation7

'ro0 the 1ield data pro6ided abo6e 3 we can 1ind that an a6era4e a0o/nt o1 below FFF"s ser6e

as 0onthly e?pendit/re 1or = percent o1 respondents5 *hirty percent o1 people spends aro/nd

FFF-9FFFF a 0onth whereas @F percent spend a s/0 aro/nd 9FFFF-9FFF as 0onthly

e?pendit/re5 #nly percent o1 the total respondents ha6e 0onthly e?pendit/re o1 0ore than

9FFF"s5

ONT.L( E/PEN)IT*'E

'e!w =<<<

=<<<< t8<<<<

8<<<<&8=<<<

Mre tha# 8=<<<

=5: MARITAL STATUS

*able :

*he below table details the n/0ber o1 respondents 0arital stat/s and their respecti6e percenta4e5

$arital stat/s No o1 respondent !ercenta4e

$arried <: <:

,n0arried C C

.i6orced 99 99

43 | P a g e



Widowed

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e data it can be seen that <: percent o1 the respondent are 0arried3 C percent o1

respondent are /n0arried3 99 percent o1 respondents are di6orced3 and percent o1 respondent

are widowed5

Married

0#married

Di3rced

/idwed

2+9 FAMILY PARTICULARS

*able

*he below table details the n/0ber o1 respondents 1a0ily partic/lars and their respecti6e

percenta4e5

44 | P a g e



SiDe o1 1a0ily No o1 respondent !ercenta4e

Below @ ; ;

F@ F= =C =C

$ore than = 9 9

*otal 9FF 9FF


Interpretation7

*he abo6e in1or0ation 1etched 1ro0 6ario/s 1ield data it clearly s/44ests that 9 percent o1 the

total respondents has = or 0ore 0e0bers in their 1a0ily5 'a0ilies with @-= 0e0bers 0ake a

pretty 4ood percenta4e o1 =C5 *he re0ainin4 ; percent consists o1 @ or below n/0ber o1 people

in the 1a0ily5

2+/ HOUSEHOLD (LAND) SIZE

*able 9F

*he below table details the n/0ber o1 respondents ho/sehold %land( siDe and their respecti6e

percenta4e

Ho/sehold %Land(

SiDe No o1 respondent !ercenta4e

Below FF ;: ;:

FF-9FFF ;; ;;

45 | P a g e



$ore than 9FFF @ @

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e stats it can be seen that ;: percent o1 the respondent are below FF3 ;; percent

o1 the respondent are between FF-9FFF3 @ percent o1 the respondent are 0ore than 9FFF5

2+ LIVING IN OWN HOUSE

*able 99

*he below table details the n/0ber o1 respondents li6in4 in own ho/se and their respecti6e

percenta4e5

Li6in4 In #wn Ho/se No #1 "espondent !ercenta4e

+es @ @

No : :

*otal 9FF 9FF


Interpretation7

*he abo6e data s/44ests that @ a0on4 9FF respondents stay in their own ho/se whereas rest :

percent doesnt own a ho/se and stays either in rent or leased ho/se5

2+. TYPE OF HOUSE

*able 9@

*he below table details the n/0ber o1 respondents type o1 ho/se and their respecti6e percenta4e

46 | P a g e



*ype #1 Ho/se No o1 "espondent !ercenta4e

"&& C;s21eet C;

*iled @<s21eet @<*hatched 9Fs21eet 9F

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e data sa0plin4 o1 o6er 9FF respondents s/44est that C; percent o1 0ajority

people stay in "&& and a 0inority o1 9F percent stay in thatched ho/ses5 *he re0ainin4

@<percent li6es in tiled ho0es5

2+, HOW MANY ACRES OF LAND YOU HAVE

*able 9;

*he below table details the n/0ber o1 respondents land the SHG 0e0bers ha6e and their


Acres o1 Land No o1 "espondent !ercenta4e

Below @Fcent C; C;

@F-=Fcent @ @

47 | P a g e



=F-CFcent C C

Abo6e CFcent @ @

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e data it can be seen that C; percent o1 the respondent owns below @Fcent o1 land

whereas @ percent o1 the respondent owns @F-=Fcent o1 land5 A 4ood a0o/nt o1 =F-CFcent land

is owned by Cpercent o1 respondents and a 0ere @ percent o1 the respondent owns abo6e CFcent

o1 land5

R!e !# $'c"!#'4a4ce '4 3!:e"* ae:'a'!4

2+2 ha '5 *!%" 6"!%3 5'>e

*able 9=

*he below table details the n/0ber o1 respondents 4ro/p siDe o1 the SHG and their respecti6e

percenta4e5

Gro/p SiDe No o1 "espondent !ercenta4e

48 | P a g e



Below F F

F 9F F F

9F 9 ; ;

Abo6e 9 C9 C9


Interpretation7

'ro0 the collected data3 it can 1o/nd that3 a 0ajority o1 %C9percent( o1 respondents ha6e a 4ro/p

siDe o1 0ore than 9 people and re0ainin4 ; percent has aro/nd 9F-9 0e0bers in their 4ro/p5

2+7 SINCE HOW LONG YOU ARE THE MEMBER OF THE GROUP

*able 9

*he below table shows the details o1 the n/0ber o1 respondents since how lon4 there are the

0e0ber o1 SHG and their respecti6e percenta4e5

$e0ber #1 *heGro/p

No o1 "espondent !ercenta4e

Below yrs == ==

F 9Fyrs

$ore than 9Fyrs 9 9

49 | P a g e



*otal 9FF 9FF


Interpretation7

.ata s/44ests that percent people corresponds to SHG 1ro0 aro/nd -9F years5 Q/st 9percent

o1 the total respondent had co6ered 0ore than 9Fyears where as the re0ainin4 == percent

respondents are actin4 as the 0e0ber 1ro0 past = years or less5

2+8 WHO MOTIVATED YOU TO <OIN SHG

*able 9C

*he below table shows the details o1 the n/0ber o1 respondents who 0oti6ated the0 to join

SHG and their respecti6e percenta4e5

$oti6ated +o/ *o Qoinin4

SHG No o1 respondent !ercenta4e

'a0ily ;F ;F

'riends 9= 9=

Gro/p 0e0ber =F =F

Sel1 0oti6ated 9C 9C

*otal 9FF 9FF


Interpretation7

50 | P a g e



'ro0 the abo6e stats it can be seen that ;F percent o1 the respondent are 0oti6ated by 1a0ily to

join SHG and a 9= percent o1 the respondent were 0oti6ated by 1riends 1or joinin4 SHG5 A 6ast

=F percent o1 the respondent were 0oti6ated by 4ro/p 0e0ber to join SHG and re0ainin4 9C

percent o1 the respondent are sel1 0oti6ated to join the SHG5

.O OTIATE) (O* TO OIN &.G

ami!y rie#ds Grup mem2er %e!" mti3ated

2+1 REASON FOR <OINING SHG

*able 9<

*he below table shows the details o1 the n/0ber o1 respondents reason 1or joinin4 SHG and their


"eason 'or Qoinin4 SHG No o1 respondent !ercenta4e

?tra inco0e =C =C

'a0ily proble0 = =

'inancial s/pport == ==

51 | P a g e



Get *o4ether : :

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e stats it can be seen that =C percent o1 the respondent are 0oti6ated 1or e?tra

inco0e3 = percent o1 the respondent are 0oti6ated to join with SHG to eli0inate by 1a0ily

proble03 == percent o1 the respondent are 0oti6ated by the 1inancial re2/ire0ent to 0aintain the

1a0ily and : percent o1 the respondent are 0oti6ated 1or a 4et to4ether5

'EA&ON ,O' OINING &.G

)tra i#cme

ami!y pr2!em

i#a#cia! supprt

Get Tgether

2+0 DECISION MAKER OF DAY TO DAY FUNCTIONING OF YOUR

GROUP

*able 9:

*he below table shows the details o1 the n/0ber o1 respondents in decision 0akin4 o1 day to day

1/nctionin4 o1 the SHG and their respecti6e percenta4e5

.ecisions #n .ay *o .ay No o1 respondent !ercenta4e

52 | P a g e



'/nctionin4

Secretary @< C;

!resident C; @<

All 0e0bers to4ether 9F 9F

*otal 9FF 9FF


Interpretation7

Analysis s/44ests that 0ajority o1 the respondents decision are taken by secretary3 @< percent o1

the respondentEs decision are taken by president3 9F percent o1 the respondentEs decision are taken

by all 0e0bers to4ether5 We can see that president plays an i0portant role in the decision

0akin4 o1 day to day 1/nctions o1 the 4ro/p5

2+9 DOES BANK PROVIDE LOAN FOR SHG

*able 9

*he table below shows the details o1 the n/0ber o1 respondents who recei6es loans 1ro0 bank

1or SHG and their respecti6e percenta4e

bank pro6ide loan No o1 respondent !ercenta4e

+es C C

No = =

*otal 9FF 9FF

53 | P a g e




Interpretation7

*he abo6e stats represent that C percent o1 the SHG respondentEs where pro6ided loan 1ro0 the

bank3 = percent o1 the SHG respondentEs where not pro6ided loan 1ro0 the bank5

2+./ IS YOUR GROUP AN ACCOUNT HOLDER IN THE BANK

*able @F

*he below tables shows the details o1 the n/0ber o1 respondents 4ro/p an acco/nt holder in the

bank and their respecti6e percenta4e5

Acco/nt Holder In *he

Bank No o1 "espondent !ercenta4e

+es 9FF 9FF

No F F

*otal 9FF 9FF


Interpretation7

A cent percent o1 respondents are pri6ile4ed with a bank acco/nt5

2+. EVER TAKEN A LOAN

*able @9

*he below table shows the details o1 the n/0ber o1 respondents taken a loan and their respecti6e

percenta4e5

Loan taken No o1 respondent !ercenta4e+es C C

No = =

*otal 9FF 9FF


Interpretation7

54 | P a g e



*he data 1ro0 1ield so/rces represents that C percent o1 the respondent are taken loan 1ro0 the

bank and the re0ainin4 = percent o1 the respondent ha6e not yet taken loan 1ro0 bank5

2+.. PURPOSE OF LOAN

*able @@

*he below table shows the details o1 the n/0ber o1 respondents p/rpose o1 takin4 a loan and

their respecti6e percenta4e

!/rpose #1 Loan No o1 respondent !ercenta4e

A4ric/lt/re @: @:

S0all scale ;: ;:

#ther ;= ;=

*otal 9FF 9FFPSo/rce7 1ro0 the 1ield data

Interpretation7

*he collected data s/44ests that @: percent o1 the respondentEs ha6e taken loan 1or a4ric/lt/re

p/rpose whereas ;: percent o1 the respondentEs took loan 1or the de6elop0ent o1 the s0all scale

ind/strial5 'ew 0e0bers ha6e taken loan 1or other p/rpose which co0p/tes to ;= percent o1

o6erall respondents5

P*'PO&E O, LOAN

Agricu!ture

%ma!! sca!e

Other

55 | P a g e



2+., RATE OF INTEREST FOR LOAN

*able @;

*he below table shows the details o1 the rate o1 interest taken by the n/0ber o1 respondents and

their respecti6e percenta4e

"ate o1 interest No o1 respondent !ercenta4e

99 ; ;

995 ;F ;F

9@ ;9 ;9

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e stats it can be seen that ; percent o1 the respondent pay 99 percent as rate o1

interest 1or their loan3 ;F percent pay 995F percent as rate o1 interest on their loan and ;9

percent pay 9@ percent as rate o1 interest on their loan5

2+.2 IS BANK LOAN AMOUNT ADE@UATE TO SHG

*able @=

*he below table shows the details o1 the n/0ber o1 respondents re4ardin4 there opinion whether

the bank loan a0o/nt is ade2/ate and their respecti6e percenta4e5

Is Bank Loan A0o/nt Ade2/ate No o1 respondent !ercenta4e

+es 9FF 9FF

No F F

*otal 9FF 9FF


Interpretation7

It is clearly /nderstood 1ro0 the data that e6ery indi6id/al in the 4ro/p 1eels that the a0o/nt

pro6ided by respecti6e bank is ade2/ate 1or their needs5

56 | P a g e



2+.7 LOAN AMOUNT TAKEN FROM THE BANK

*able @

*he below table shows the details o1 the n/0ber o1 respondents re4ardin4 there opinion whether

the bank loan a0o/nt taken 1ro0 the bank is ade2/ate and their respecti6e percenta4e5

Loan taken 1ro0

bank No o1 respondent !ercenta4e

Below FFFF 9 9

FFFF-<FFF 9 9

<FFF-9FFFFF @@ @@

$ore than9FFFFFF 9@ 9@

*otal 9FF 9FF


Interpretation7

*he abo6e stats s/44est that 9 percent o1 the respondents ha6e taken an a0o/nt

o1 below FFFF as bank loan5 $ajor 9 percent o1 the respondent take ha6e taken an a0o/nt o1

"sFFFF to <FFF as loan whereas @@ percent o1 the respondent took "s <FFF to 9FFFFF5

$inority o1 9@ percent respondent took a loan a0o/nt o1 "s9FFFFF5

57 | P a g e



LOAN AO*NT TAEN ,'O T.E BAN

'e!w =<<<<=<<<<&@=<<<

@=<<<&8<<<<<

Mre tha#8<<<<<<

2+.8 INSTALMENT PERIOD TO REPAY LOAN AMOUNT

*able @C

Instal0ent !eriod No o1 respondent !ercenta4e

Weekly F F

Bi-weekly F F

$onthly 9FF 9FF

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e stats it can be seen that all the respondent repay loan to the bank 0onthly5

2+.1 PAYMENT STATUS

*able @<

Stat/s o1

"epay0ent No o1 respondent !ercenta4e

'/lly repaid @ @

!artly repaid : :

*otal 9FF 9FF


58 | P a g e



Interpretation7

Abo6e stats shows that : percent o1 respondents ha6e only partially repaid their loan a0o/nt

and the re0ainin4 @ percent ha6e closed their loan transactions with Bank by payin4 the whole

a0o/nt5

2+.0 DELAYING IN SANCTIONING OF LOAN

*able @:

.elay In Sanctionin4 Loan No o1 respondent !ercenta4e

+es ; ;

No < <

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e stats it can be seen that < percent o1 the respondent say that is no delay in

sanctionin4 o1 loan by bank3 ; percent o1 the respondent ha6e opinion that there was a delay in

sanctionin4 the loan by bank

2+.9 DIFFICULTY IN THE TIME OF TAKING LOAN

*able @

.i11ic/lties In *he *i0e

#1 Loan No o1 respondent !ercenta4e

+es 9@ 9@

No :: ::

*otal9FF 9FF


Interpretation7

59 | P a g e



Stats s/44ests that abo/t :: percent o1 the respondents had no di11ic/lties in the ti0e o1 loan

where as 9@ percent respondent 1aced di11ic/lties in the ti0e o1 loan5

2+,/PERSONAL LOANS BY SHG

*able ;F

!ro6ide !ersonal Loan No o1 respondent !ercenta4e

+es 9FF 9FF

No F F

*otal 9FF 9FF


Interpretation7

6ery sin4le respondent a4rees that SHG pro6ide personal loan which 0akes it a cent percent

acti6ity5

2+, LOAN AMOUNT PROVIDED BY SHG

*able ;9

A0o/nt No o1 respondent !ercenta4e

FFF 9 9

<FF

,p to 9FFFF F F

*otal 9FF 9FF


Interpretation7

"e1erences shows that 9 percent o1 the respondent recei6ed an a0o/nt o1 "s FFF 1ro0 the SHG

as loan and percent o1 the respondent recei6ed "s <FF 1ro0 the SHG5 A 0ajority F percent

o1 respondents a4reed that they recei6ed /p to "s9FFFF as loan a0o/nt5

60 | P a g e



2+,. INTEREST RATE

*able ;@

"ate o1 interest No o1 respondent !ercenta4e

9@ 9FF 9FF@= F F

Abo6e @= F F

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e stats it can be seen that the rate o1 interest o1 all the respondents in the SHG was

9@ percent

2+,, PURPOSE AND UTILIZATION OF LOAN AMOUNT

*able ;;

!artic/lars No o1

respondent!ercenta4e

&hildren ed/cation ;; ;;

Ho/se repair 9C 9C

$edical treat0ent 9; 9;

stablish0ent o1 b/siness 9@ 9@

#ther @C @C

*otal 9FF 9FF


Interpretation7

*he 1ield so/rce data s/44ests that ;; percent o1 the respondents /tiliDe the loan a0o/nt 1or their

childrens ed/cation b/t a 9C percent o1 the respondents /tiliDe the loan a0o/nt 1or ho/se repair5

A little 9; percent o1 the respondents /tiliDe the loan a0o/nt 1or 0edical treat0ent whereas 9@

percent o1 the respondents /tiliDe the loan a0o/nt 1or other works5

61 | P a g e



P*'PO&E AN) *TILI5ATION O, LOAN A-O*NT

+hi!dre# educati#

Huse repair

Medica! treatme#t

)sta2!ishme#t " 2usi#ess

Other

2+,2 IMPROVEMENT IN CREDIT FACILITIES AFFTER <OINING SHG

*able ;=

!artic/lar No o1 respondent !ercenta4e

+es ;@ ;@

No C: C:


Interpretation7

Analysis shows that abo/t ;@ percent o1 the respondents ha6e a4reed to the 1act that the credit

1acilities ha6e i0pro6ed a1ter they had joined SHG and the rest restricts the0sel6es to a4ree to

the sa0e5

2+,7 SOURCES OF CREDIT

*able ;

So/rces #1 &redit No o1 respondent !ercenta4e

Bank =@ =@

Society @@ @@

62 | P a g e



Nil ;: ;:

*otal 9FF 9FF


Interpretation7

I1 the credit 1acilities ha6e to i0pro6e3 it can be seen that =@ percent o1 the respondents wanted it

1ro0 the banks3 @@percent wanted 1ro0 the society and the rest o1 the ;: percent o1 the

respondents were satis1ied with the present credit 1acilities5

2+,8 ATTITUDE OF FAMILY WHEN FUNCTIONING IN GROUP

*able ;C


S/pporti6e = =

Non s/pporti6e C C

*otal 9FF 9FF


Interpretation7

'ro0 the abo6e stats it can be seen that = percent o1 the 1a0ily are s/pporti6e with the

respondents to 1/nction with the SHG3 C percent o1 the 1a0ily are non s/pporti6e with the

respondents to 1/nction with the SHG

2+,1 CONFLICT AMONG GROUP MEMBERS

*able ;<

!artic/lars No o1 respondent !ercenta4e

+es < <

No ; ;

*otal 9FF 9FF

PSo/rce7 1ro0 the 1ield data5

63 | P a g e



Interpretation7

A 0ajority o1 ; percent o1 the respondent says N# to con1lict a0on4 4ro/p 0e0ber whereas <

percent o1 the respondents a4rees ha6e con1lict a0on4 4ro/p 0e0bers5

2+,0 STEPS ADOPTED TO RESOLVE THE CONFLICT

*able ;:


'ine F F&o/nsellin4 < <

Healthy en6iron0ent F F

*otal < <


Interpretation7

All o1 the < percent respondents who had con1licts a0on4 the 4ro/p 0e0bers s/44est to ha6e

co/nsellin4 to resol6e it5

2+,9 SATISFACTORY LEVEL ON FUNCTIONING OF GROUP

*able ;

'/nctionin4 #1 +o/r

Gro/p No o1 respondent !ercenta4e

Hi4hly /nsatis1ied F F

,nsatis1ied @ @

Ne/tral 9 9Satis1ied ;: ;:

Hi4hly Satis1ied = =

*otal 9FF 9FF


Interpretation7

64 | P a g e



'ro0 the abo6e stats it can be seen that a 0ere @ percent o1 the respondent are dissatis1ied with

the 1/nctionin4 o1 the SHG3 9 percent o1 the respondent are ne/tral with the 1/nctionin4 o1 the

SHG and a ;: percent o1 the respondent are satis1ied with the 1/nctionin4 o1 the SHG5 A 4ood

0ajority o1 = percent o1 the respondents are hi4hly satis1ied with the 1/nctionin4 o1 the SHG5

&ATI&,ACTO'( LE1EL ON ,*NCTIONING O, G'O*P

High!y u#satis4ed

0#satis4ed

Neutra!

%atis4ed

High!y %atis4ed

GN"AL N,"+

2+2/ FOOD EPENDITURE

*able =F

Be1ore Qoinin4 !ercenta4e A1ter Qoinin4 !ercenta4e

Below @FF C Below @FF ;

@FF-FFF 99 @FF-FFF ;

FFF-<FF 9@ FFF-<FF 9=

Abo6e <FF : Abo6e <FFF 9@

*otal 9FF *otal 9FF


Interpretation7

'ro0 abo6e table it is clear that a 0ajor 0ajority %C( spent less than @FF IN" 1or 1ood be1ore

joinin4 SHG5 Howe6er the 6al/e dropped down considerably low %;( a1ter joinin4 the sa0e5

65 | P a g e



*here is a s/bstantial rise in @FF-FFF IN" cate4ory a1ter joinin4 SHG as the 6al/e increased

1ro0 99 to ;5 *here is a slender hike in FFF-<FF IN" R abo6e <FF cate4ory a1ter joinin4

SHG5 'ro0 the data it is clear that there is a 4eneral trend to spend 0ore a1ter joinin4 SHG5

Howe6er ; are /na11ected and still opts to spend less than @FF IN" 1or 1ood5

2+2 NON FOOD EPENDITURE

*able =9

Be1ore Qoinin4

SHG!ercenta4e A1ter Qoinin4 !ercenta4e

Below @FF F5<< Below @FFF F5=:

@FF-FFF F59 @FFF-=FFF F5;

FFF-<FF F5F< =FFF-:FFF F5@9

Abo6e <FF F5F9 Abo6e :FFF F5F9

*otal 9FF *otal 9


Interpretation7

Since there was a 4eneral trend o1 spendin4 0ore 0oney on 1ood a1ter joinin4 SHG3 the a0o/nt

spent on non-1ood cate4ory pl/n4ed down si4ni1icantly in below @FF IN" cate4ory5 *he 6al/e

dropped 1ro0 << to =:5 Interestin4ly3 the a0o/nt spent in non-1ood e?pendit/re do/bled

%9 to ;F( a1ter joinin4 SHG irrespecti6e o1 the hike in 1ood e?pendit/re in @FF-FFF IN"

cate4ory5 Si0ilar trend 1ollowed in FFF-<FF IN" cate4ory as the 6al/e tripled 1ro0 < to

@95 'or abo6e <FF IN" cate4ory howe6er had no 6ariations as the 6al/e re0ained the sa0e%9(5

66 | P a g e



2+2. MONTHLY EPENDITURE

*able =9

Be1ore Q#Inin4 !ercenta4e A1ter Qoinin4 !ercenta4e

Below 9FFFF F5 Below 9FFFF F59

9FFFF-@FFFF F5F= 9FFFF-@FFFF F5F<

Abo6e @FFFF F5F9 Abo6e @FFFF F5F@

*otal 9FF *otal 9FF


Interpretation7

'ro0 abo6e table it is clear that 0ajority o1 e?penses co0es /nder 9FFFF IN" cate4ory5 $onthly

e?pendit/re ca0e down 1ro0 to 9 a1ter joinin4 SHG5 Howe6er 1or 9FFFF-@FFFF IN" cate4ory there was a hike in 0onthly e?pendit/re 1ro0 F= to F<5 Si0ilar trend 1ollowed in

abo6e @FFFF IN" cate4ory as the 6al/e increased 1ro0 F9 to F@5

67 | P a g e



CHAPTER-7

FINDING

7+ F'4'465 !# he 5%*

As per the st/dy 0ajority o1 the respondents belon4 to the hind/ reli4ion with a4e 4ro/p ;9 to CF

where the 4eneral cate4ory o1 caste 1or0s the 0ajority n/0ber o1 respondents5

Accordin4ly it was 1o/nd that @: percent o1 respondents 1all in the cate4ory with 2/ali1ication

de4ree or abo6e and secondary le6el ed/cation b/t 0ore than hal1 o1 the respondents are

/ne0ployed5

It is clear that =< percent o1 the respondents 4et a 0onthly inco0e o1 FFF to 9FFFF where 0ost

o1 the respondents ha6e a 0onthly e?pendit/re o1 less than FFF5

68 | P a g e



'ro0 the abo6e data <: percent o1 respondents are 0arried shows that 9 percent o1 the

respondents has = or 0ore 0e0bers in their 1a0ily5

An land siDe o1 FF acres are owned by ;: percent o1 the respondents and states that 0ost o1 the

respondents li6e in their own ho/se5

*he SHG contains a 0ini0/0 o1 9F 0e0bers in e6ery 4ro/p5 'ro0 the collected data3 we 1o/nd

that a C9 percent o1 4ro/p contains 0ore than 9 0e0bers5 In other words3 the awareness o1

1inancial bene1its i0pressed the co00on 0an5

*he concept o1 SHG is known to the co00on people 1ro0 0any years5 S/r6ey s/44ests that

percent o1 respondents is a 0e0ber o1 the 4ro/p 1ro0 past -9F years5 *his /ndo/btedly i0plies

that3 the SHG can pro6ide a 6ery 4ood li1e style and 1inancial s/pport to the 0e0bers5 *his

0akes the0 willin4 to work to4ether witho/t any disp/tes5

'ro0 the abo6e data3 we can see that the already e?istin4 SHG 0e0bers 0oti6ated =F percent o1

respondents to join the SHG5 *he 0ain reason behind the 0oti6ation bein4 the sec/rity to ones

li1e a1ter joinin4 s/ch 4ro/ps5

It is essential in o/r day to day li1e to ha6e an e?tra inco0e so as to pro6ide a basic 1inancial

s/pport to the 1a0ily5 *he reason 1or =C percent o1 respondents to join SHG was the idea o1 an

e?tra inco0e whereas == percent tho/4ht o1 the 1inancial s/pport SHG can pro6ide5

*he decision 0aker in 4ro/p is the Secretary5 *he Secretary takes decision which is bene1icial

1or the 4ro/p and to the 0e0bers5

*he banks pro6ide loans to SHG to 0ake the 4ro/p 0e0bers sel1-e0ployed and 0akin4 the0

sel1-con1ident5 So that a C percent o1 0e0bers responds 1a6or to the loan5

6ery 0e0bers o1 the 4ro/p is an acco/nt holder5 *his will 0ake a 4ood i0pro6e0ent to their

sa6in4s5 In another 6iewpoint3 the banks pro6ide loans only thro/4h the bank acco/nts5 Hence bein4 an acco/nt holder is ine6itable5

'ro0 the data which acco/nts abo/t the loan3 it is clearly seen that C percent o1 the 0e0bers

takes or ha6e taken loan thro/4h SHG5 *his i0plies that the 0e0bers in the 4ro/ps are ea4er to

work and in ret/rn they can ser6e their respecti6e 1a0ilies an earnin4 0e0ber5

69 | P a g e



By attendin4 the awareness classes3 the 0e0bers are /sin4 the loan a0o/nt either to i0pro6e

their a4ric/lt/re or the s0all scale ind/stry or the both5 By doin4 this they are tryin4 to i0pro6e

the 1inancial back4ro/nd and their li1e style5

*he banks are pro6idin4 loans to the SHG so as to help the 0e0bers5 *he interest rate is 6ery

less when co0pared to pri6ate sectors5 $icro1inance is act/ally introd/ced by the 4o6ern0ent to

help the poor5 *he lowest interest rate starts at 9; percent in the pri6ate sectors5

*o be4in a s0all scale ind/stry3 the a0o/nt 4i6en by the banks is really ade2/ate5 *he 0e0bers

who are takin4 the loans 1ro0 the banks ha6e a clear pict/re abo/t the loan a0o/nt and the

interest they ha6e to pay back5 $ore o6er they are co0pelled to work hard 1or the repay0ent o1

their respecti6e loan a0o/nt5

When it co0es to repayin4 the loan a0o/nt3 e6ery 4ro/p3 that is3 cent percent 4ro/ps repay their

loan 0onthly takin4 their con6enience into acco/nt5

$ost o1 the banks dont 0ake any delay in sanctionin4 loans to the 4ro/ps5 "arely banks 0ake

delay d/e to ins/11icient 1/nds5 $ajority o1 0e0bers in SHG are not 1acin4 any di11ic/lties 1or

takin4 loans5 So0e 0e0bers are 1acin4 certain proble0s d/e to lack o1 knowled4e5

&ent percent o1 0e0bers takes personal loans 1ro0 SHG /p to a s/0 o1 9FFFFIN" at an interest

rate o1 9@ percent5 *hey /se the a0o/nt either 1or their childrens ed/cation3 or ho/se repair or

any other lo4ical p/rposes5 It is 6ery help1/l 1or 0e0bers to 4et s/ch loan a0o/nts 1ro0 SHG5

70 | P a g e



&HA!*"-C

S,GGS*I#NS

71 | P a g e



8+ SUGGESTIONS

• Awareness classes sho/ld be pro6ided 1or wo0en to a6oid e4o and clash a0on4 the 0e0bers5

• It 0/st be 0ake s/re that the loan taken 1ro0 bank and other instit/tion by SHG 0e0bers is

bein4 /tiliDed 1or prod/cti6e p/rpose5• Banks sho/ld pro6ide 0ore loans with less interest rate to SHG 0e0bers5

• It wo/ld be con6enient 1or each 0e0ber to attend e6ery 0eetin4 witho/t i1 a per0anent

plat1or0 1or cond/ctin4 0eetin4 is set/p3 re4ardless o1 pri0iti6e 0eas/res o1 cond/ctin4

0eetin4 in 0e0bers ho/ses which are 1ar apart 1ro0 each other that 0ake 0e0bers 1ail to t/rn

/p 1or the 0eetin4s5

• Ins/11iciency o1 loan a0o/nt is the 0ajor reason 1or so0e SHG to work as sick /nits5

• All the 0e0bers sho/ld 0ake it a point to attend all 0eetin4s5

• *he best opinion 1ro0 a0on4 all indi6id/al and opposin4 attit/de and opinions 0/st be selected

1or better 1/nctionin4 o1 SHG5

• It is necessary to pro6ide classes 1or i0partin4 re2/ired in1or0ation and know how to 0e0bers

as 0ajority o1 the0 are illiterate5

SHG /nit 0e0bers sho/ld be enli4htened abo/t the need o1 their participation in 1/nction and

p/blic acti6ities5 *hey sho/ld also be ed/cated abo/t the nat/re o1 their attit/de towards people

in partic/lars5 *hese iss/es sho/ld be disc/ssed in the 0eetin4s5

72 | P a g e



CHAPTER-1

CONCLUSION

1+CONCLUSION

73 | P a g e



Sel1 Help Gro/ps o1 r/ral wo0en can 1or0 the heart o1 co00/nity de6elop0ent acti6ities5 *he

poolin4 o1 0in/sc/le and indi6id/al 1inancial sa6in4s o1 the 0e0bers thro/4h 4ro/p acti6ities

can act as a stron4 back-bone 1or wo0en e0power0ent5 S/pple0ented by the linka4es o1 the

sel1 help 4ro/ps with banks3 thereby enablin4 0icro-credit 1acilities3 the 1inancial power o1 these

r/ral wo0en 4ets s/bstantially increased5

*he present st/dy e6idences the e?istence o1 stron4 linka4es o1 the SHGs with banks5 *he 6ery

reason o1 0e0bers3 as opined by the03 in joinin4 the 4ro/p is the i0pro6ed chances o1

accessibility to loans5 Also the opport/nity to /ndertake econo0ic acti6ities thro/4h 4ro/p

e11orts3 and the conco0itant learnin4 o1 entreprene/rial and technical skill sets act as 0oti6ators

1or 4ro/p 0e0bership5 *h/s3 there e?ists stron4 positi6e relation between the reasons 1or joinin4

the 4ro/p3 and the e?istence o1 bank linka4es5 *he stron4 bank linka4e that e?ists3 can 6isibly

enhance the opport/nity o1 0e0bers to access loans3 /ndertake econo0ic acti6ities3 and de6elop

skills5

*he hi4h incidence o1 bank linka4e and accessibility to 1inance thro/4h SHGs is still not

relie6in4 the r/ral pop/lation 1ro0 the cl/tches o1 0oney lenders and e?orbitant interest rates5 It

points to the i0portant 1act o1 ins/11iciency o1 1/ndin4 thro/4h the bank linka4e por4ra005 *he

lack o1 transparency in the SHG acti6ities3 and inaccessibility to o11icial records 0ay 1/rther

hinder the e11ecti6eness o1 the 0o6e0ent

BIBLIOGRAPHY

<!%"4a5

74 | P a g e



95 Madhusuda# Ghsh, ;<8;, M(+RO&(NAN+) AND R0RAL POV)RT (N (ND(A %HGS'a#5

Li#5age Prgramme, V!. 98, N. *9-

;. M.Ve#5ata Rama#aiah,, +. Ma#ga!a GwriA, R)V()/ O )TH(OP(AN M(+RO (NAN+)

(N%T(T0T(ON% AND TH)(R ROL) (N POV)RT R)D0+T(ON6 A +A%) %T0D ON AMHARA +R)D(T

AND %AV(NG (N%T(T0T(ON *A+%(- ;<88, V!.8, N.8

9. TH) +ONTR('0T(ON O M(+RO&(NAN+) ON TH) GRO/TH O M(+RO&)NT)RPR(%)% (N

0K)R)/) D(%TR(+T, M/AN1A, TAN1AN(A ,;<88, V!.8, N.8

7. Dr. Padmaa Ma#hara#, Dr. Rameshwari Ramacha#dra, Dr.R. Nirma!a De3i, M(+RO

(NAN+) (N%T(T0T(ON% (N (ND(A S A %T0D ON (NAN+(AL P)RORMAN+), ;<88, V!.8, N.8

=. P. 'a!amuruga# et a!. Q (#ter#ati#a! Jur#a! "r Research i# Ma#ageme#t a#d Pharmacy,

V!. 9, (ssue 8, Ja#.&e2ruary ;<87 *(JRMP- (%%N6 ;9;<& <:<8

O#!e re$r"e$

=.www.micr4#a#ce"cus.cm

>. www.micr4#a#cegateway.cm

@. www.micr4#a#ce.cm

B. http6QQe#.wi5ipedia.rg

Ne$paper$

:. The Hi#du

8<. 'usi#ess Times

88.)c#mic Times

B

8;. Micr credit guide!i#e ;<89&;<87

SHG-BANKLINKAGE PROGRAM (MICROFINANCE) IN POVERTY ALLEVIATION

WITH SPECIAL REFERANCE TO ALLAPUZHA DISTRICT

75 | P a g e



95 A4e7

@5 "eli4ion7 %9( Hind/ %@( $/sli0

%;( &hristian %=( #thers

;5 &aste cate4ory7 %9( GN"AL %@( #B&

%;( S& %=( S*

=5 d/cational 2/ali1ication5 %9( Illiterate %@( !ri0ary

%;( Secondary %=( Inter0ediate

%( .e4ree and abo6e

5 #cc/pation5

C5 What is yo/r 0onthly inco0eT "s5

<5 What is yo/r 0onthly e?pendit/reT "s5

:5 $arital stat/sT

%9($arried %@( ,n0arried

%;( .i6orced %=( Widowed

5 'A$IL+ !A"*I&,LA"S7

S+ N!= Na$e Rea'!4 'h hea Se; A6e E%ca'!4 Occ%3a'!4

76 | P a g e



9F5 Ho/sehold siDe

995 Are yo/ li6in4 in own ho/seT

%9( +es %@( No

9@5 *ype o1 ho/seT

%9( "&& %@( *iled %;( *hatched

9;5 How 0any acres o1 land yo/ ha6eT

SHG DETAILS=

95 What is yo/r 4ro/p siDeT

@5 Since how lon4 yo/ are the 0e0ber o1 the 4ro/pT

;5 Who 0oti6ated yo/ to join Sel1 Help Gro/psT

=5 What are the reasons 1or joinin4 SHGsT

5 Who take decisions on day to day 1/nctionin4 o1 yo/r 4ro/pT

C5 .oes banks pro6ide loans 1or SHGT

%9( +es %@( No

<5 Are yo/r 4ro/p an acco/nt holder in the bankT

%9( +es %@( No

77 | P a g e



:5 Ha6e yo/ e6er taken a loanT

%9( +es %@( No

5 $ostly 1or what p/rpose loan is takenT

%9( A4ric/lt/ral p/rpose %@( S0all scale ind/stry

%;( #thers

9F5 "ate o1 interest is to be 4i6en to the loanT

995 Is Bank loan a0o/nt ade2/ate to SHGT

%9( +es %@( No

9@5 How 0/ch loan yo/ ha6e taken 1ro0 the bankT

a) Less than FFFF &) FFFF to <FFF

c) <FFF to 9FFFFF ) $ore then 9FFFFF

9;5 Instal0ent period to repay loan to the bankT

%9( Weekly %@( Bi- Weekly

%;( $onthly

9=5 Stat/s o1 repay0ent

%9( '/lly "e paid %@( !artly "epaid

95 Is there any delay in sanctionin4 o1 loan by banksT

%9( +es %@( No

9C5 .id yo/ 1ace any di11ic/lties at the ti0e o1 4ettin4 loanT

%9( +es %@( No

9<5 .oes SHG pro6ides personal loansT

%9( +es %@( No

78 | P a g e



9:5 How 0/ch a0o/nt did SHG pro6idesT

%9( FFF %@( <FF %;( /p to 9FFFF

95 "ate o1 interest

%9( 9@ %@( @= %;( @= Abo6e

@F5 Instal0ent period to repay loanT

%9( Weekly %@( Bi-Weekly

%;( $onthly

@95 Stat/s o1 repay0ent

%9( '/lly "e paid %@( !artly "epaid

@@5 'or which p/rpose3 yo/ /tiliDe the loan a0o/ntT

%9( &hildrens ed/cation %@( Ho/se "epair %;( $edical *reat0ent

%=( stablish0ent o1 b/siness %( other

@;5 Is credit 1acilities are i0pro6ed a1ter joinin4 SHGsT

%9( +es %@( No

@=5 I1 i0pro6ed3 what are the so/rces o1 creditT

@5 What is the attit/de o1 yo/r 1a0ily while yo/ are 1/nctionin4 with the 4ro/pT

%9( S/pporti6e %@( Non s/pporti6e

@C5 Is there any con1lict a0on4 4ro/p 0e0bersT

%9(5 +es %@(5 No

@<5I1 yes steps taken to resol6e itT

%9( 'ine %@( &o/nsellin4 %;( Healthy n6iron0ent

79 | P a g e



@:5 Are yo/ satis1ied with the 1/nctionin4 o1 yo/r Gro/pT

%9( Hi4hly dissatis1ied % @( .issatis1ied %;(Ne/tral

%=( Satis1ied %( Hi4hly satis1ied

@5GN"AL N,I"+7

IND

E

NO

MONTHLY

INCOME

MONTHLY

EPENDITUR

E

FOOD

EPENDITUR

E

NON FOOD

EPENDITUR

E

MONTHLY

SAVINGS

B'#

"

Q#INI NG

SHG

%IN"(

A'*

"

Q#INI NG

SHG

%IN"(

B'#

"

Q#INI NG

SHG

%IN"(

A'*

"

Q#INI NG

SHG

%IN"(

B'#

"

Q#INI NG

SHG

%IN"(

A'*

"

Q#INI NG

SHG

%IN"(

B'#

"

Q#INI NG

SHG

%IN"(

A'*

"

Q#INI NG

SHG

%IN"(

B'#

"

Q#INI NG

SHG

%IN"(

A'*

"

Q#INI NG

SHG%I

N"(

80 | P a g e



81 | P a g e

shg-bank linkage programme final

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