Microfinance programmes are known for their possible to bring forth income and employment to relieve poorness in developing states. They are considered as an of import attack to poverty relief and sweetening of life criterions, peculiarly of adult females. Furthermore, microfinance has come to be regarded as a auxiliary development paradigm, which widens the fiscal service bringing system by associating the big rural population with formal fiscal establishments through Self-help Groups ( SHGs ) . SHGs are playing a major function in rural India today. The group-based theoretical account of self-help is widely practiced for rural development, poorness extenuation and authorization of adult females. Self-help as a scheme for societal development topographic points accent on autonomy, human bureau and action. It aims to mobilise people, to give them voice and build people ‘s organisations that will get the better of barriers to engagement and authorization. The self-help theoretical account in India facilitates institution-building in the signifier of people ‘s organisations in the signifier of groups, bunchs and federations. The hapless, nevertheless, rarely form themselves. It is an aided self-help procedure where the State, the fiscal establishments and the non-governmental organisations ( NGOs ) play an of import function in mobilising and helping the hapless and the needy. The present paper is a descriptive survey of the SHGs promoted by Gramudyog Hastakala Kendra, an NGO working for publicity of SHGs in Kathua District of Jammu part. A sample of 10 SHGs consisting of 162 members have been taken to analyze the assorted facets of the SHGs viz. educational profile, economic position and occupational form etc. pre and station SHG formation. It is found that most of the members of SHGs are economically weak. The overall findings of the survey suggest that SHG – Bank Linkage Programme has significantly improved the entree to fiscal services for the rural hapless and has considerable positive impact on the socio-economic conditions and the decrease of poorness of SHG members and their families. It has besides empowered adult females members well and contributed to increased assurance and positive behavioural alterations in the post-SHG period as compared to the pre-SHG period.
Cardinal Wordss: Microfinance, Self aid group, recognition, nest eggs
The post-nationalization period in the banking sector, circa 1969, witnessed a significant sum of resources being earmarked towards run intoing the recognition demands of the hapless. There were several aims for the bank nationalisation scheme including spread outing the outreach of fiscal services to ignored sectors ( Singh, 2005 ) . As a consequence of this scheme, the banking web underwent an enlargement stage without comparables in the universe. Recognition came to be recognized as a redress for many of the ailments of the poorness. There spawned several pro-poor fiscal services, supported by both the State and Central authoritiess, which included recognition bundles and plans customized to the sensed demands of the hapless. While the aims were commendable and significant advancement was achieved, recognition flow to the hapless, and particularly to hapless adult females, remained low. This led to enterprises which were establishment driven that attempted to meet the bing strengths of rural banking substructure and purchase this to better function the hapless. The pioneering attempts at this were made by National Bank for Agriculture and Rural Development ( NABARD ) , which was given the undertakings of bordering appropriate policy for rural recognition, proviso of proficient aid backed liquidity support to Bankss, supervising of rural recognition establishments and other development enterprises. In the early 1980s, the Government of India launched the Integrated Rural Development Program ( IRDP ) , a big poorness relief recognition plan, which provided authorities subsidized recognition through Bankss to the hapless. It was aimed that the hapless would be able to utilize the cheap recognition to finance themselves over the poorness line. Besides during this clip, NABARD conducted a series of research surveies independently and in association with Mysore Resettlement and Development Agency ( MYRADA ) , a taking non-governmental organisation ( NGO ) from Southern India, which showed that despite holding a broad web of rural bank subdivisions serving the rural hapless, a really big figure of the poorest of the hapless continued to stay outside the crease of the formal banking system. These surveies besides showed that the bing banking policies, systems and processs, and sedimentation and loan merchandises were possibly non good suited to run into the most immediate demands of the hapless. It besides appeared that what the hapless truly needed was better entree to these services and merchandises, instead than cheap subsidised recognition. Against this background, a demand was felt for alternate policies, systems and processs, nest eggs and loan merchandises, other complementary services, and new bringing mechanisms, which would carry through the demands of the poorest, particularly of the adult females members of such families. The accent therefore was on bettering the entree of the hapless to microfinance instead than merely micro-credit. To reply the demand for microfinance from the hapless, the past 25 old ages has seen a assortment of microfinance plans promoted by the authorities and NGOs. Some of these plans have failed and the acquisition experiences from them have been used to develop more effectual ways of supplying fiscal services. These plans vary from regional rural Bankss with a societal authorization to MFIs. In 1999, the GoI merged assorted recognition plans together, refined them and launched a new programme called Swaranjayanti Gram Swarozgar Yojana ( SGSY ) . The authorization of SGSY is to go on to supply subsidised recognition to the hapless through the banking sector to bring forth self-employment through a self-help group attack and the plan has grown to an tremendous size. MFIs have besides become popular throughout India as one signifier of fiscal intermediary to the hapless. MFIs exist in many signifiers including co-operatives, Grameen-like enterprises and private sector MFIs. Thrift co-operatives have formed organically and have besides been promoted by regional province organisations like the Cooperative Development Foundation ( CDF ) in Andhra Pradesh. The Grameen-like enterprises are following a concern theoretical account like the Grameen Bank. Private sector MFIs include NGOs that act as fiscal services suppliers for the hapless and include other support services but are non technically a bank as they do non take sedimentations. Recently, microfinance has garnered important world-wide attending as being a successful tool in poorness decrease. In 2005, the Govt. of India introduced important steps in the one-year budget impacting MFIs. Specifically, it mentioned that MFIs would be eligible for external commercial adoptions which would let MFIs and private Bankss to make concern thereby increasing the capacity of MFIs. Besides, the budget talked about programs to present a microfinance act that would supply some ordinances on the sector. It is clear from the old that the aims of the bank sector nationalisation scheme have resulted into several outgrowths, some of which have succeeded and some have failed. Today, Self-Help Groups and MFIs are the two dominant signifier of microfinance in India. In late July 2010 SKS Microfinance became the first microfinance establishment in India to travel public by offering its portions through an initial public offering ( IPO ) , and the 2nd pure microfinance establishment globally after Mexican MFI Banco Compartamos in 2007.
Microfinance programmes are good known for their possible to bring forth income and employment and alleviate poorness in developing states. They are considered an of import attack to poverty relief and sweetening of life criterions, peculiarly of adult females. Furthermore, microfinance has come to be regarded as a auxiliary development paradigm, which widens the fiscal service bringing system by associating the big rural population with formal fiscal establishments through SHGs. A figure of impact analysis surveies carried out internationally have clearly established that microfinance programmes contribute to the accomplishment of several facets of the Millennium Development Goals ( MDGs ) . In India, NABARD was the first organisation to detect the phenomenon of microfinance. Ever since that clip the spread of microfinance is steadily turning through the SHGs. However in 1996, NABARD launched a countrywide pilot undertakings to associate the SHGs to the Bankss. In 1998, NABARD tied up with GTZ ( German Society for Technical Cooperation ) Rural Finance Programme to back up the SBLP programme since so. Harmonizing to NABARD, a SHG consists of an ‘average size ‘ of 15 people from a homogenous societal or economic category, all of whom come together for turn toing their common jobs. The SHGs meet on a regular basis and salvage little amounts of money. The groups are promoted either by Bankss or non -governmental organisations ( NGOs ) and are recognition linked through assorted theoretical accounts developed by Bankss. In India, the SBLP has now been in operation for good over a decennary. The NABARD study ( 2005-06 ) suggests that the cumulative figure of SHGs financed by Bankss till March 2006 was about 2.3 million across the state with a rank of 32.98 million individuals. Sing the regional distribution of SHGs, the study suggests that more than half the SHGs ( 12.1 lakh up to March 2006 ) are runing in south India, followed by 3.9 hundred thousand in the E and 2.7 hundred thousand in the cardinal part. However, the north-east has merely approximately 60,000 SHGs. The bing literature on SHG- bank linkage programme reveals an overall image of great promise on the socioeconomic wellbeing of the members ‘ families. Much has happened in this sector during the past decennary and a figure of surveies have already evaluated the outreach and the coverage of SHG programmes, few of which have been reviewed in the undermentioned subdivision. The major findings of the relevant studies have besides been summarized in a manner that it becomes easier to compare the earlier ratings with the present survey.
Reappraisal of Literature
In India, the first study on SHGs was undertaken by NABARD, along with other Indian members of the Asian and Pacific Regional Agricultural Credit Association ( APRACA ) . They conducted an action and research on associating SHGs with the construct of nest eggs and recognition in 1987 and published the result of the research in the signifier of a study study in 1989. The study was carried out in the signifier of instance surveies of 46 SHGs spread over 11 provinces and associated with 20 SHPIs. Of all the SHGs sampled, 17 had nest eggs aggregation and recognition proviso as a major activity. Another 13 were engaged in farming or farm based activities, five were into societal forestry and afforestation, eight were engaged in non-farm activities and three were occupied in diverse businesss.
Based on the instance surveies on nest eggs and recognition of 17 SHGs, the survey reported that when a SHG was promoted by a SHPI, it by and large comprised lone members of the weaker subdivisions. In contrast, whenever a SHG emerged on its ain, it by and large included members of the hapless every bit good as not-so-poor families. Many SHPIs, including Andhra Mahila Sabha ( AMS ) , Kerala Gandhi Samarak Nidhi ( KGSN ) , Nazareth Ashram ( NA ) and MYRADA relied on the resourcefulness of the adult females and concentrated on organizing groups affecting merely adult females. It was easier to organize adult females ‘s groups by supplying them necessary wellness attention and other installations and bit by bit affecting them into other activities.
Puhazhendi, V and Satyasai, K.J.S ( NABARD ) ( 2000 ) conducted a survey for NABARD on SHG-bank linkage programme. The survey assessed the impact of microfinance on socio-economic conditions of 560 family members from 223 SHGs located in 11 provinces ; Rajasthan ( Northern part ) , Orissa and West Bengal ( Eastern part ) , Madhya Pradesh and Utter Pradesh ( Central part ) , Gujarat and Maharashtra ( Western part ) , and Andhra Pradesh, Karnataka and Tamil Nadu ( Southern part ) . The choice of SHG family members was based on multistage stratified random trying method. The figure of SHGs were distributed across the surveyed provinces as per chance proportional to the cumulative figure of SHGs bank-linked as on March 31, 1998 – topic to a lower limit of 10 SHGs from each province. The survey included SHGs that had completed a lower limit of one twelvemonth of bank linkage as on March 31, 1999.
The consequences of the survey suggest that out of the entire sample, 84 per cent belonged to the economically weaker subdivisions, of which agricultural labourers comprised 32 per cent followed by 29 per cent of little husbandmans and 23 per cent of fringy husbandmans. Sing the position on instruction, it was found that 24 per cent of family members of SHGs were illiterate and 26 per cent could merely subscribe their names. About 21 per cent had primary instruction, 23 per cent had secondary instruction and the remainder had higher secondary instruction or something near to it.. The survey found homogeneousness in footings of group members populating in the same small town or holding unvarying socio-economic position. Homogeneity in criterion of life of SHG members constituted about 60 per cent, followed by propinquity of abode reported by 29 per cent. With respect to meetings, approximately 65 per cent of the groups recorded more than 90 per cent of attending during group meetings. The survey found that frequence of monthly meetings was highest ( 54 per cent ) , followed by that of hebdomadal meetings ( 23 per cent ) . Merely about 8 per cent of the groups did non hold regular meetings at all. With respect to societal facets, the survey found that going members of SHGs and tie ining in its activities had significantly contributed to bettering the assurance of the take parting adult females. The adult females admitted that their sense of ego worth was enhanced.
Puhazhendi, V and K C Badatya ( 2002 ) conducted impact survey on SHG Linkage Programme in India. The survey assessed the impact on SHG members in three eastern provinces, i.e. , Orissa, Jharkhand and Chattisgarh. The analysis of the survey was based on primary informations collected from a sample of 115 members of 60 SHGs. A socio-economic impact was arrived at by comparing the pre and station SHG state of affairss of members. The overall findings of the survey suggest that the SHG- bank linkage programme had made a important part to societal and economic betterment of SHG members. About 83 per cent of the sampled SHG members belonged to the SC/ST communities. The survey reported frequence and regularity in meetings among the members. The survey besides reported an addition in family nest eggs and assets for the SHG members after they formed the group. Out of the entire sample, 45 per cent reported an addition in assets after fall ining a SHG. The net incomes of SHG member families increased by 23 per cent, from Rs. 12,319 to Rs. 15,814 after organizing the SHG. With respect to employment, the survey found that employment per family increased by 34 per cent between the pre-SHG and post-SHG state of affairss. There was besides a singular betterment in the societal authorization of SHG members in footings of assurance, as reflected in their decision-making abilities and communicating accomplishments. Sustainability of SHGs was good established in footings of increased value of assets and nest eggs rate, better entree to institutional loans, higher rate of refund of loans, riddance of informal beginnings and impressive societal authorization. The survey reported that members in 80 per cent of SHGs received some signifier of preparation. About 97 per cent of SHGs formed by NGOs received preparation, while merely 50 per of those formed by Bankss got such inputs. 73 per cent of the members found the preparation utile.
MYRADA ( 2002 ) conducted survey on adult females ‘s authorization of SHG members for the southern part ‘s provinces. In all, 13 SHGs were surveyed and it covered four professionally managed NGOs ( DHAN, RASS, CHASS and MYRADA ) , one from each province. The survey found that most of the SHG members were immature ( 26-35 old ages of age ) married adult females in both type of SHGs ( less than one twelvemonth to more than three old ages old ) . About 45 per cent of SHG members were illiterate in the first class of SHGs and 47 per cent in the 2nd group of SHG. In footings of business, 53 per cent of respondents were non – gaining members in the first group and in the 2nd, 66 per cent of the respondents were either the head pay earners or subscribers to the household net incomes. The part of SHG members in their several household income was found higher for older groups as compared to the younger 1s. The portion of SHG members in household income between 50 and 100 per cent was found 17.3 per cent for older groups against 6.8 per cent of younger groups. An of import facet of group formation is stableness. Because of migration, peculiarly of single adult females who move after matrimony to another small town, it was suggested that group leaders focus merely on married adult females for group formation. Apart from stableness, the group leaders reported that SHG groups need the good will of the villagers, control and subject and fiscal stableness.
Nair, Ajai ( 2005 ) examined the potency of SHG federations in supplying sustainability to SHGs through fiscal and organizational support. Specifically, the survey examined issues like ( I ) assortment of services provided by the federations and their benefits to SHGs, ( two ) fiscal variableness of SHGs and SHG federations and cost of advancing them, ( three ) designation of restraints of advancing SHG federations, and, ( four ) policy recommendations to beef up SHG federations. In footings of services provided by SHG federations and thrift cooperation to SHGs, the survey found that the most common service is nest eggs and loan installations.
Ghate, Prabhu ( 2006 ) highlighted the findings of recent surveies on the SBLP-microfinance establishments theoretical account in India and in other states. This study is of import in the context of the unprecedented rise of the microfinance sector in India during the past decennary and the anxiousness of different participants ( like the authorities, NGOs, fiscal establishments and others ) to cognize the pros and cons. The survey reviewed the findings of three of import recent surveies, Parkas and others ( 2005 ) , APMAS ( 2005 ) and EDA Rural System and APMAS ( 2006 ) . All these surveies revealed that SBLP is turning at a higher rate in front of the capacity of SHPIs to guarantee equity. The survey notes that groups formed by authorities bureaus tend to be the weakest and cut downing their portion comparative to those promoted by NGOs and even Bankss could heighten overall programme quality.
Moyle, Dollard and Biswas ( 2006 ) assessed the economic and personal authorization of 100 adult females aged between 16 and 65 old ages, take parting in SHGs from two small towns ( Delwara and Shishvi ) in Rajasthan. Based on qualitative informations, the survey found that after fall ining SHGs, the members achieved both economic and personal authorization in footings of corporate efficiency, pro-active attitudes, self-esteem and self efficaciousness. In instance of personal authorization, 99 per cent of adult females believed that ‘self-help group members are ever able to discourse jobs that affect everyone ‘ , and 91 per cent of adult females believed that ‘if a job arises that people can non work out by themselves, the group as a whole will be able to work out it ‘ . Similar consequences were found in instance of sensed capableness of group members.
EDA Rural Systems and APMAS ( 2006 ) conducted a survey on the SHG-Bank-linkage programme in India, turn toing a broad scope of issues including instances of dropouts from SHGs and internal political relations, and issues of societal harmoniousness and societal justness, community actions, book-keepings, equity, defaults and recoveries and sustainability of SHGs. The survey was based on a primary study of 214 SHGs in 108 small towns in 9 territories of four provinces, two southern ( Andhra Pradesh and Karnataka ) and two northern ( Orissa and Rajasthan ) . The sample of the survey was based on older adult females ‘s groups, largely bank-linked ( with a bank loan ) before March 2000. The survey found that 51 per cent of SHG members were hapless, 55 per cent belonged to the SC/ST class and 66 per cent of SHGs had members of a individual caste.In instance of dropout, 10 per cent of members had dropped out of the working SHGs of above sample, over a 3rd of them for grounds of migrations, decease or unwellness. The dropout rate from the really hapless was 11 per cent and was less for those who were financially better off. On issues related to sustainability and fiscal facets of SHGs, the survey found that the quality of records/note books was good merely in 15 per cent of groups, moderate in 39 per cent and weak in 40 per cent. The government-promoted groups were weakest in record maintaining and were half every bit likely as NGO or bank-promoted groups to hold good or reasonably kept up records.
Overall, the informations reflect comparatively low standard divergence around the mean for the figure of loans and sum borrowed by members. Group leaders by and large have better entree to loans. The survey evaluated the refund of loans by members to SHGs on monthly footing. It was found that 24 per cent of borrowers were more than three months behind agenda on refunds, of whom 5 per cent were more than 12 months behind agenda. Default by 12 months was significantly higher for the really hapless and 8-9 per cent for hapless borrowers, compared to borderline instances at 4 per cent and for non-poor at 1 per cent. Data on portfolio at hazard ( PAR ) for 155 SHGs show that 45 per cent of such groups ( but 66 per cent in Andhra Pradesh ) had defaulted for more than a twelvemonth, amounting to 17 per cent of the portfolio ( but one-third in Andhra Pradesh ) .
Meissner, J ( 2006 ) conducted a survey for the NABARD-GTZ Rural Finance Program analyzing the viability of SHG loaning in a regional rural bank subdivision, the Alwar Bharatpur Anchalik Gramin Bank ( ABAGB ) , in Alwar territory of Rajasthan. The analysis of the survey was based on primary informations collected in August and October 2005. Overall, the survey found that the SHG loaning operations of the subdivision were feasible and sustainable. With respect to the staff cost ( disbursals for staff involved in organizing and advancing new SHGs ) in a peculiar twelvemonth ( i.e. , 2004-05 ) , the survey reported that staff cost was higher but hazard of loan loss ( 1.5 per cent and 0.4 per cent of loan outstanding ) was less. In the instance of normal lending operations, this was merely the opposite -low staff cost and high hazard of loan loss ( 0.9 per cent and 1.5 per cent of loan outstanding ) . However, the survey mentioned that the staff cost calculated over several old ages ( 6 old ages ) was found to be less than that for one twelvemonth ( 1.3 per cent as compared to 1.5 per cent under one twelvemonth ) , but was still more clip and cost-intensive than normal loaning ( 0.9 per cent ) . The importance for the viability of SHG imparting operations lies in the low hazard costs of SHG loaning in comparing to normal minutess.
Ramakrishna, R.V. ( 2006 ) assessed the SHG bank-linkage programme from the primary informations collected from 27 public sector Bankss, 192 regional rural Bankss and 114 concerted recognition establishments in Tamil Nadu, West Bengal, Karnataka, Chhattisgarh and Maharashtra. The analysis of the survey was based on information from the Bankss as on March 31, 2005. The survey reported that commercial Bankss had a major portion of the market at 61 per cent of entire figure of active SHG members and 68 per cent of the entire figure of loans outstanding to these SHGs. As compared to 61 per cent market portion of commercial Bankss, the RRBs ‘ had 30 per cent and concerted Bankss had merely 9 per cent of the portion of the entire figure of active SHG members.
The survey has defined nest eggs outreach in footings of gap of nest eggs account and sum of money deposited by SHGs in their nest eggs account. In the instance of the former, it was found that commercial Bankss had major portion ( 52 per cent ) followed by RRBs ( 34 per cent ) and concerted Bankss ( 14 per cent ) .
In term of the portion of Bankss in nest eggs of SHGs it was reported that RRBs had the major portion of 49 per cent followed by commercial Bankss ( 44 per cent ) and concerted Bankss ( 7 per cent ) . The portion of SHG loans in overall loans and progresss was 0.36 per cent in the instance of commercial Bankss, 6 per cent for RRBs and 0.81 per cent for concerted Bankss. The clip required for a bank to approve a loan was found to be comparatively fast, with an norm of merely 11 yearss for the first loan and nine yearss for subsequent loans. On refunds of loans, 14 of the 27 ( more than 50 per cent ) commercial Bankss had an on-time recovery of more than 90 per cent, which compares favourably with the lower recovery rates for their normal loaning activities.
Significance of the Study
The SHG Bank linkage programme has besides spreaded to the province of J & A ; K. A no of surveies [ NABARD ( 1995 ) , SANGWAN ( 1997 ) , NABARD ( 1997 ) , DATTA and RAMAN ( 2001 ) ] have documented the accomplishment and impact of SHGs in Karnataka, UP, Tamil Naidu and Andhra Pradesh, severally. A comprehensive survey by NABARD ( 2002 ) in 22 territories of 11 provinces from a sample of 560 members of about 220 SHGs has revealed, interalia, addition in income of families involved with SHGs. Engagement of the members in group activities significantly contributed in bettering their assurance and communicating accomplishments. Even some narratives are presented through telecasting, newspapers, etc. but there is no survey documenting success/failure of microfinance in the province of J & A ; K. Therefore the present paper attempts to measure the socio-economic impact of SHG in Kathua territory of Jammu part of J & A ; K.
The present paper aims to analyze the undermentioned facets of SHGs in Kathua territory of Jammu part:
1. To analyze the profile of SHGs.
2. To analyze the societal impact of microfinance during Pre and Post- SHG period.
To analyze the authorization of members of SHG during Pre and Post- SHG period.
The present paper is a descriptive survey of the SHGs promoted by Gramudyog Hastakala Kendra ( GHK ) , an NGO working for publicity of SHGs in Kathua District of Jammu part. GHK has promoted 400 SHGs in entire in the whole Kathua District. The SHGs have been selected by utilizing convenience sampling technique. A sample of 10 SHGs consisting of 162 members has been taken for the present survey. The study has been carried out during Jul-Aug, 2010.
This portion of the paper trades with the analysis and reading of the primary informations with regard to general profile of SHGs, societal impact and authorization of SHG members.
General Profile of the sample SHGs
Table 1 depicts the general information sing the sample members of SHGs. The groups selected for the survey are shacking in seven different small towns of Kathua District, viz. Chandra Chakk, Phalepur, Hira Nagar, Banyadi, kootah More, Gura Baloo and Mugloore.All the SHGs selected for the study are adult females SHGs promoted by GHK and carry oning monthly meetings at the members ‘ abode by rotary motion. In the sample SHGs ; Radha and Shobha group are the oldest groups with the age of 9 old ages & A ; 8 old ages as in Aug, 2010 & A ; Kamal group is the youngest group with an age of 1 twelvemonth & A ; 8 months as in Aug.2010. The mean age of the sample SHGs is found to be 4 old ages and 5 months. It can be seen from the tabular array that Komal group consists of highest members ( 20 ) while Mahila Sangathan and Kamal group consists of lowest members ( 10 ) in a group. Thrift sum per member per month is fixed, which is Rs. 30 in bulk of the instances while for 3 SHGs it is Rs. 50 and for 2 SHGs it is Rs. 100/- . No late fee is being charged by any group in instance of non-payment of monthly thrift on clip. 24per cent is the one-year involvement rate charged to the members of SHGs for taking loan from the principal. Majority of the SHGs have ne’er raised or reduced the monthly nest eggs sum except Radha and Shobha group who had raised it from Rs. 50 to Rs. 100 per member. From the above tabular array, it can be concluded that Shobha group is the best acting group among the sample SHGs because it is non merely the oldest group in the sample but it has added three members in this period and besides raised the thrift sum from Rs. 50 to Rs. 100.
Footing of Forming Groups
As depicted in Fig. 1. about the footing of organizing the groups, it can be observed that 74 members ( 45 per cent ) have formed group on the footing of same caste, 64 members ( 40 per cent ) have formed group on the footing of salvaging, 16 SHG members ( 10 per cent ) have formed the group because of common activity, 8 members ( 5 per cent ) have formed group on the footing of same street.
Attrition rate of members of the SHGs
Fig 2 presents the response of the members sing abrasion in the SHGs. It can be seen that 116 members ( 71 per cent ) of 7 SHGs have responded that no member had left their groups, while 19 members ( 12 per cent ) of 1 SHG have responded that one member of their SHG had left the group, while 14 members ( 12 per cent ) of 1 SHG have responded that two member of their SHG had left the group and 13 members ( 9 per cent ) of 1 SHG have responded that more than two members of their SHG had left the group. Exception here is the Shobha group which has added 3 members since its origin. Therefore it can be concluded that the abrasion rate of the SHG members is rather low.
Average attending in the last five meetings of the SHG members
Fig 3 portrays the response of the members sing mean attending during last five meetings. It can be seen that the mean attending in the last five meetings of 81 SHG members ( 50 per cent ) comes out to be between 90-100 per cent, for 73 members ( 45 per cent ) between 80-90 per cent & A ; for 8 members ( 5 per cent ) between 70-80 per cent. All the groups maintain an attending registry. Average attending of all the sample SHG members is more than 80 per cent.
Community-wise distribution of sample members
Fig 4 depicts the distribution of the sample SHG members on the footing of Community. It can be observed that 40 SHG members ( 25 per cent ) are from Schedule Caste ( SC ) , 92 members ( 57 per cent ) are from Other Backward Class ( OBC ) , 2 SHG members ( 1 per cent ) are Schedule Tribe ( ST ) , 18 members ( 11 per cent ) are from general class and 10 members ( 6 per cent ) are in the others class which consists of minorities ( Sikhs and Muslims ) . So OBCs constitute the major ball of sample SHG members.
Age of SHG members
Fig 5 shows the distribution of the members on the footing of age of the SHG members. It can be seen that 15 members ( 9 per cent ) are below 18 old ages of age, 44 members ( 27 per cent ) are between 19-30 old ages of age, 86 members ( 54 per cent ) are between 31-50 old ages of age and 17 members ( 10 per cent of entire ) are above 50 old ages of age. Therefore, it can be concluded that bulk of the members are above 30 old ages of age.
Occupational form of the SHG members
Fig 6 presents the distribution of the sample SHG members on the footing of occupational form. It is found that 24 members ( 15 per cent ) trade in farm activities, 38 members ( 23 per cent ) are Agricultural laborers, 56 members ( 35 per cent ) are homemakers, 24 members ( 15 per cent ) trade in services which include anganwadi assistant, school drudge, etc and 20 members ( 12 per cent ) trade in other activities which is shawls fabrication. So housewives signifier the largest proportion followed by agricultural laborers.
Housing Position of the SHG members
Fig 7 portrays the response of the members into two classs on the footing of Kuchcha house ( Mud house ) and Pucca house ( Cemented house ) . It can be concluded that 88 members ( 54 per cent ) are holding Pucca house while 74 SHG members ( 46 per cent ) are holding Kuchcha house.
Educational Status of the SHG members
Fig 8 shows the distribution of the members on the footing of their Educational position. It can be concluded that 44 SHG members ( 27 per cent ) are illiterate, 34 members ( 21 per cent ) can subscribe, 14 members ( 9 per cent ) have studied upto 5th criterion, 34 members ( 21 per cent ) upto 8th criterion, 14 members ( 9 per cent ) upto tenth criterion, 20 members ( 12 per cent ) upto 12th criterion and 2 members ( 1 per cent ) are alumnus.
Family Size of the SHG members
Fig 9 depicts the distribution of the sample SHG members on the footing of their household size. It can be observed that 31 members ( 19 per cent ) have 2-4 individuals in their household, 50 SHG members ( 31 per cent ) have 5-6 individuals in their household, 34 members ( 21 per cent ) have 7-8 individuals in their household, 31 members ( 19 per cent ) have 9-10 individuals in their household and 16 members ( 10 per cent ) have more than 10 individuals in their household. Therefore, it can be concluded that bulk of the members are holding more than 6 members in their several households.
Land keeping by the SHG members
Fig 10 presents the distribution of the sample SHG members on the footing of their Land keeping. It can be seen that 108 SHG members ( 67 per cent ) are landless, 38 members ( 23 per cent ) are holding land less than 2.5 hectares, 13 members ( 8 per cent ) are holding land between 2.5 and 5 hectares and merely 3 members ( 2 per cent ) are holding land more than 5 hectares. So it can be concluded that the bulk of sample SHG members are landless.
Economic Status of SHG members
Fig 11 portrays the response of the members on the footing of economic position. It can be concluded that 62 SHG members ( 38 per cent ) come in Above Poverty Line ( APL ) class while 100 SHG members ( 62 per cent ) come in Below Poverty Line ( BPL ) class. Therefore bulk of the sample SHG members are low economically.
Social Impact and authorization of members
Huge subdivisions of the rural hapless are even now deprived of the basic comfortss, chances and oppressed by societal imposts and patterns. Several programmes were implemented by assorted authoritiess and non governmental organisations to elate them both economically and socially. SHG programme is one such effort but with a difference as it follows group attack. It has been an recognized premiss that adult females were non given adequate chances to affect themselves in the determination doing procedure of the household every bit good as in the society. Hence, adult females were the chief mark groups under SHG programme. When infused with assurance and sense of belonging to the group, it has been found that adult females frequently would demo better consequences than work forces.
The SHG programme provides equal range for the rural families, particularly adult females, to assist in developing self worth and societal behaviour through a series of preparations and group meetings organized by the NGOs and Bankss. An appraisal of the impact of SHGs on societal life of the members by comparing the pre- and post-SHG state of affairss was carried out.
Communication Level of Members
Table 2 presents the alterations that occurred in the communicating degree of the members during pre and station SHG period. It is found that there has been 48 per cent addition in SHG members, who can now freely talk in the meetings while there has been a lessening of 17 per cent and 31 per cent members, who sometimes negotiations or hesitates to speak. It can be concluded that Microfinance motion is holding a good impact on members, in their ability to show their feelings and has made people more confident to show themselves.
Self Confidence among Sample Members
The group formation brought out the concealed endowment and leading qualities among the members. Table 3 presents the proportion of members demoing positive responses to assorted facets of assurance. It can be seen that there has been an addition of 45.6 per cent in SHG members with regard to confidence edifice factors. Therefore, it can be concluded that after fall ining the SHG the members have improved their position in household, acquiring more respect in society, go helpful in household finance and sometimes helped others excessively.
Change in Family Violence
Family force being a sensitive subject was hard to be ascertained from the members particularly adult females. Fig. 12 depicts that household force reported is about by 29 per cent of sample families. It has been seen that the most of import component in force is verbal maltreatment. Engagement with SHG has reduced this force in 25 per cent instances particularly due to decrease in economic troubles. In most of instances the members revealed that their hubbies should besides be involved in SHGs.
Frequency of Interaction with Outsiders
Table 4 presents the alterations that occurred in the frequence of interaction with foreigners during pre and station SHG period. Members by and large, got lesser chance to interact with bankers, Government functionaries, NGOs and others in the Pre-SHG period. It can be seen that in the Pre-SHG period 51 per cent of the members were non interacting with functionaries whereas after tie ining with SHGs, 91 per cent members had interacted with the foreigners and out of entire 44 per cent have interacted more than 4 times with foreigners. This interaction helped them to joint their jobs and improved their assurance.
Status of Access to Amenities
Since SHG programme has economic as good societal deductions, it is necessary to measure the assorted dimensions of the programme. Lack of substructure installations, entree to comfortss like wellness, sanitation, instruction, market, H2O supply, affect the economic and overall development of the members. Table 5 presents the position of entree to above installations for the sample members. It can be seen that there has been an addition of 40.53 per cent in SHG members in footings of their position of entree to comfortss factors. Therefore, it can be concluded that after fall ining the SHG the members have improved in acquiring entree to comfortss like medical, sanitation, instruction, market, H2O supply, conveyance.
Overall Utility of SHGs
The purpose of the SHG programme has been to supply microfinance, i.e. , recognition plus related services and besides concentrate on authorization of the members with particular accent on adult females. However the perceptual experiences and outlooks of the people who joined the SHG programme might hold been rather different. Table 6 depicts the sentiment expressed by the sample members about the public-service corporation of SHGs. It can be seen that 26 per cent members feel that SHGs have inculcated a wont of salvaging in all the members, 10 per cent members revealed that it is an easy manner of acquiring bank loan, 37 per cent members as a beginning of ingestion loan, 16 per cent members as a beginning of production loan and merely 7 per cent & A ; 4 per cent members as a nexus to other govt. bureaus and as a beginning of making consciousness severally. So it can be concluded that highest proportion of SHG members consider it as a beginning of ingestion loan.
The survey has indicated that even though the members have joined SHGs for assorted grounds they work towards one common end, which is seeking a better criterion of life through a better organisation that works for their benefits. Hence it is suggested that the policy contrivers might redouble their attempts to do the SHG motion non merely a successful but besides a sustainable vehicle in the procedure of rural development.
The SHG motion has caught the imaginativeness of the rural hapless as purveyors of microfinance. Their fast spread might throw unfastened administrative, fiscal and bureaucratic jobs. Hence a regular rating of the strengths and failings of SHGs is strongly recommended. This would guarantee that this of import programme, which had kindled so much hope in carry throughing the aspirations of the rural hapless, did non roll from its hired class of supplying microfinance for rural development.
This is a micro degree survey confined to one territory of J & A ; K. Hence it is suggested that a broader survey at the province degree with appropriate scientific methods be undertaken in which comparing with non-target or control groups forms an of import constituent for a comparative impact assessment analysis of SHGs as purveyors of microfinance.
In amount, it could be concluded that the rural people have been immensely benefited by microfinance. It has helped them in their socio-economic upliftment. The rural hapless now feel that they can besides be spouses in the procedure of rural development by fall ining the SHG motion. The preparation of the members by the NGOs had increased their assurance, restored self worth and improved their societal concern about the neighbors. This survey has besides indicated that even though the members have joined the SHGs for assorted grounds, all of them have one common end, which is seeking a better criterion of life via a better organisation that works for their benefits. Hence, it could be concluded that the SHGs could function as an alternate instrument of fiscal intermediation for the hapless. Besides, the microfinance services offered by them have helped to force back.
Fig. 1: Footing of Forming Groups
Fig. 2: Abrasion rate of members of the SHGs
Fig. 3: Average attending in the last five meetings of the SHG members
Fig. 4: Community-wise distribution of sample members
Fig. 5: Age of SHG members
Fig. 6: Occupational form of the SHG members
Fig. 7: Housing Position of the SHG members
Fig. 8: Educational Status of the SHG members
Fig. 9: Family Size of the SHG members
Fig. 10: Land keeping by the SHG members
Fig. 11: Economic Status of SHG members
Fig. 12: Change in Family Violence
Table 1: General Profile of the sample SHGs
Name of SHG
Date of Formation
Age of SHG
Thrift Amount per Group per Month
2 Years & A ; 7 Calendar months
Rs. 300 ( Rs. 30/- member )
1 Year & A ; 8 Calendar months
Rs. 300 ( Rs. 30/- member )
3 Old ages
Rs. 600 ( Rs. 30/- member )
4 Years & A ; 3 Calendar months
Rs. 600 ( Rs. 30/- member )
14 ( Three Left )
4 Years & A ; 11 Calendar months
Rs. 700 ( Rs. 50/- member )
13 ( Two Left )
9 Old ages
Rs. 1300 ( Rs. 100/- member )
17 ( Added Three )
8 Old ages
Rs. 1700 ( Rs. 100/- member )
4 Old ages
Rs. 950 ( Rs. 50/- member )
2 Years & A ; 10 Calendar months
Rs. 1000 ( Rs. 50/- member )
19 ( One Left )
4 Old ages
Rs. 570 ( Rs. 30/- member )