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PROJECT ON
“ A STUDY OF SHG – NABARD PATNERSHIP TO
EVOLVE POOR’S LIFE STYLE ”

Submitted to
Dr. Homi Bhabha State University for partial completion

of degree of Bachelor of Commerce (Banking and

Insurance)

Under the Faculty of Commerce By

ANVESH PULSHETTY

TYBBI-B

Roll no:

Under the Guidance of

Dr. JHARNA KALRA

SYDENHAM COLLEGE OF COMMERCE

ANDECONOMICS, B-ROAD, CHURCHGATE,

MUMBAI-400002

September 2023
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INDEX

Sr .no TOPIC

1. Introduction

2.
Literature review

3. Problem of the study

4. Objective

5. hypothesis

Research design
6.

7. Data interpretation

8. Findings & suggestion, recommendations

9. References
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INTRODUCTION

Self-help groups (SHGs) play today a major role in poverty alleviation in rural India.
Self-help as a strategy for social development places emphasis on self-reliance, human
agency and action. It aims to mobilize people, to give them voice and build peoples
organizations that will overcome barriers to participation and empowerment. The SHG
system has proven to be very relevant and effective in offering women the possibility to
break gradually away from exploitation and isolation. Almost all major donor agencies
support SHGs in India in one way or another and many success stories are available,
describing how membership in a SHG changed the life of a particular individual or group
for the better. Many NGOs are promoting the SHG mechanism and linking it to various
other development interventions.

Self Help Group is about people coming together with others who are affected by
a particular issue to support each other and to work together to change the disadvantage
affecting them. SHGs have another very important role to play particularly in the transfer
of technology to user group population. It has been found by the members of SHGs that
they offer them organizational base, large resources and access to modern technology
leading to employment and income generation. Thus, SHG movement among the rural
poor in different parts of country is emerging as a very reliable and efficient mode for
technology transfer. However, it is strongly felt that the pace of transfer and
popularization of technologies must be accelerated so that even the small farmer can
benefit from new technologies.

SHG is group of rural poor who have volunteered to organize themselves into a group
for eradication of poverty of the members. They agree to save regularly and convert their
savings into a common fund known as the group corpus. The members of the group agree
to use this common fund and such other funds that they may receive as a group through a
common management.
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Generally a self-help group may consist of 10 to 20 persons. However, in difficult areas

like deserts, hills and areas with scattered and sparse population and in case of minor
irrigation and disabled persons, this number may be from 5-20. The dissicult areas have
to be identified by the state level committee and the above relaxation in membership will
be permitted only in such areas.

The group should devise a code of conduct to bind itself. This should be in the
form of regular meetings, functioning in a democratic manner, allowing free exchange of
views, participation by the members in the decision making process.

The group should be able to draw up an agenda for each meeting and take up
discussions as per the agenda. The members should build their corpus through regular
savings. The group should be able to collect the minimum voluntary saving amount from
all the members regularly in the group meetings. The savings so collected will be the
corpus fund. The group corpus find should be used to advance loans to the members.
The group should develop financial management norms covering the loan sanction
procedure, repayment schedule and interest rates.

The group should maintain simple basic records such as minutes book,
Attendance register, Loan ledger, General ledger, Cash book, Bank passbook and
individual passbooks. The sample proforma for maintenance of above records by the
group is in the Annexure 2 for guidance. These could be used with necessary
changes/modifications wherever required. 50 percent of the groups formed in each block
should be exclusively for the women. In the case of disabled persons, the groups formed
should ideally be disability-specific groups are not available, a group may comprise of
persons with diverse disabilities or a group may comprise of both disabled and non-
disabled persons below the poverty line.

The joint liability of the group enables the poor to overcome the problem of collateral
security and also has an in-built mechanism of peer monitoring leading to better loan
recoveries and productive credit utilization.

The SHGs provide the benefit of economies of scale, cost effective services, collective
learning, democratic base of platform for dialogue and co-operation. The functions of
SHGs are based on co- operations rather than competition. It follows the principle of
“contribute according to our ability and extract according to your need”.

The origin of SHGs could be traced to mutual aid in Indian village community
co-operatives, which are formal bodies, whereas SHGs are informal groups, which
encourage savings and promote income-generating activities through small loans.
The experiences available in the country suggest that SHGs are sustainable, reliable,
stimulates savings and in the process help borrowers to come out of vicious circle of
poverty. These groups are called as “solidarity groups” as they provide monetary as well
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as moral support to individual members in times of difficulties. Zaman pointed out, that
self-help groups have played valuable roles in reducing the vulnerability of the poor,
through asset creation, income and consumption smoothing, provisions of emergency
assistance and empowering and embroidering women by giving them control over assets
and increased self-esteem and knowledge.
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NABARD

National bank for agriculture and rural development (NABARD) is an apex

development bank in India. It has been accredited with matters concerning policy,
planning and operations in the field of credit for agriculture and other economic activities
in rural areas in India. NABARD was established by an act of parliament on 12, July,
1982 to implement the National Bank for Agriculture and Rural Development Act 1981.
It replaced the Agricultural Credit Department (ACD) and rural planning and credit cell
(RPCC) of Reserve Bank of India, and Agricultural refinance and Development
Corporation (ARDC). It is one of the premeire agency to provide credit in rural areas.

ROLE OF NABARD

• Serves as an apex financing agency for the institutions providing investment and
production credit for promoting the various developmental activities in rural
areas.

• Takes measures towards institution building for improving absorptive capacity of

the credit delivery system, including monitoring, formulation of rehabilitation
schemes, restructuring of credit institutions, training of personnel,etc.

• Co-ordinates the rural financing activities of all institutions engaged in

developmental work at the field level and maintains liaison with Government of
India, state governments, Reserve Bank of India and other national level
institutions concerned with policy formulation.

• Undertakes monitoring and evaluation of projects refinanced by it.

• Acts as a coordinator in the operations of rural credit institutions

• Extends assistance to the government, the Reserve Bank of India and other
organizations in matters relating to rural development.

• Offers training and research facilities for banks, cooperatives and organizations
working in the field of rural development providing assistance to eligible
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institutions in agriculture and rural development Acts as regulator for cooperative

banks and RRBs.
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LITERATURE REVIEW

➢ This study is based on the review of some relevant studies. The studies reviewed
are excellent source to understand the process of change, though they do not
provide precise estimates of impact assessment parameters. Formation, functioning
and impact are the broad issues examined in the studies.

➢ Sarkan (2001) pointed out on his study that, SHG is the useful tool in building the
capacity of the poor management of sustainable self employment opportunities,
besides providing other financial services like savings, housing consumption
credit, insurance cover etc., through NABARD. The nation policy on SHG should
emphasize on encouraging initiatives and participation of different type of
institution in microfinance, bring the microfinance activities, irrespective of the
type of institution involved, with in the regulation and supervision of completed
authorities, creating policy environment.

➢ Rao (2002) on his study “women self help groups (SHGs) and microfinance
schemes” he has pointed out that micro provide credit access to poor with no
collateral obligation. It encourages savings and promote income, generating
activities, loans and provided at the market driven rates of interest and poor
pressure is used in repayment,microfinance is carried out through self help group
where poor come together through their saving and loans with the help of
NABARD.

➢ Joshi (2002) on his study he has pointed out that the micro credit programme
extend loans to poor people for self-employment projects that generate income
with the help of NABARD, allowing them to care for themselves and their
families, to their clients in addition to credit for self employment. The rural areas
the poor have been dependent on money lenders for their financial needs, either
marriage in the family, illness or any other emergency need, money lender always
exploit the situation.

➢ Kamal Vatta (2003) on his study SHG and poverty alleviation he has pointed that
the microfinance involves financing for SELF HELP GROUPS which are small,
informal and homogeneous groups, of the not more than 20 members. The
members have poor risk taking ability, no collateral to other and have limited
earning opportunities. The working fund grown with time and group can also
approach financial institution for credit. The group keeps taking decisions as in the
past but with more resources.

➢ NABARD and SHGs, it is clearly understood that the SHGs are tool to promote
rural savings and gainful employment. Through this, the rural poverty is reduced
considerably. Therefore women members are economically independent and their
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contribution to household income has also increased. The present study is also
focusing the economic improvement of women after joining SHGs.
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OBJECTIVE OF THE STUDY

✓ To study the social conditions of members of SELF HELP GROUPS.

✓ To study the economic conditions of members of SELF HELP GROUPS.
✓ To analyze the impact of microfinance on ERADICATING RURAL
POVERTY.
✓ To study the SELF HELP GROUPS performance in providing microfinance
services to the members.
✓ The National Bank will be an apex organization in respect of all matters
relating to policy, planning operational aspects in the field of credit for
promotion of Agriculture, Small Scale Industries, Cottage and Village
industries, Handicrafts and other rural crafts and other allied economic
activities in rural areas.
✓ The Bank will serve as a refinancing institution for institutional credit such
as long-term, short-term for the promotion of activities in the rural areas.
✓ The Bank will also provide direct lending to any institution as may
approved by the Central Government.
✓ The Bank will have organic links with the Reserve Bank and maintain a
close link with in.
✓ Preparing of potential linked credit plans for identification of exploitable
potentials under agriculture and other activities available for development
through bank credit.
✓ Refinancing banks for extending loans for investment and production
purpose in rural areas.
✓ Involvement in implementation.
✓ Participatory planning.
✓ Inculcating culture of self-help.
✓ Ensuring sustainability.
✓ Local resource contribution.
✓ Promote sustainable Agriculture & Rural development.
✓ Recognizing the value of Agricultural Biodiversity.
✓ Promote AWARNESS & Education Activities.
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PROBLEMS OF STUDY
Poverty and unemployment are the twin problems faced by the developing countries. The
SHGs are informal groups formed on a voluntary basis, for providing the necessary
support to their members for their social and economic emancipation. The distinguishing
feature of the SHGs is creating social and economic awareness enables the members to
lead their life in a sound hygienic environment and pursue a better living. The woman
members involve themselves more in taking decisions regarding the education of their
children, the investment of the family, managing the economic assets of the family and
bringing up cohesion among the members of the family and others for a better living.
On the economic point of view both men and women work shoulder to
increase the income of the family. Every member of the SHGs has felt the need for more
involvement in economic activities. The spirit for social and economic upliftment of
members is the significant contribution of each and every SHG. There is a general
tendency to consider the SHGs as a panacea for all the ills of the rural community.
Generally, the problem arises within a SHG because of the presence of
women with diverse nature and habits within a single group who disagree over various
issues. As a result, that group as a whole face problems in organising the rules and
managing the activities of the group that could have led to their common benefit. The
major problems faced are the passive attitude of the group members, difference in
opinion among the group members, problems arising from constant late or no repayment
of loans by a particular member and other personal problems.
Usually, the groups with capable leaders are able to co-ordinate and control
these problems efficiently such that these problems do not hamper the activities of the
group. They convince the members so that mutual understanding is increased and
build up a uniform financial discipline within the group without facing any difficulties.
The role of NGOs in solving these petty issues within a group is immensE

• Lack of access of people to government

• Government programmes that have little relevance to rural communities
• Inappropriate design of some government programmes and schemes
• Low quality of human resources at the implementation levels of government
• Lack of recognition among government personnel that they have a stake in the
poor’s development.
• Lack of awareness of general public about the activities
• Issues of transparency
• Narrow perception towards initiatives
• Lack of consensus on implementing issues
• Non-availability of clear guidelines
• Need to build local capacities
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• Visibility factor.
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1. Ignorance of Members/Participants:

Even though the authorities take measures for creating awareness among the group
members about the schemes beneficial to them, still majority of the group are unaware
of the schemes of assistanc
2. Inadequate Training Facilities

The training facilities given to the members of SHGs in the specific areas of product
selection, quality of products, production techniques, managerial ability, packing, other
technical knowledge ate are not adequate to compete with that of strong units.

3. Problems Related with Raw Materials:

Normally each SHG procures raw materials individually from the suppliers. They
purchase raw materials in smaller quantities and hence they may not be able to enjoy the
benefits of large scale purchase like discount, credit facilities etc.

Moreover, there is no systematic arrangement to collect raw materials in bulk quantities

and preserve them properly. There is no linkage with major suppliers of raw materials.
Most of the SHGs are Ignorant about the major raw material suppliers and their terms and
conditions. All these causes high cost of raw materials.

4. Problems of Marketing:

Marketing is an important area of functioning of the SHGs. However they face different
problems in the marketing of products produced by them.

Following are the major problems relating to marketing.

(a) Lack of sufficient orders.

(b) Lack of linkage with the marketing agencies.

c) Lack of adequate sales promotion measures.

(d) Lack of permanent market for the products of SHGs.

(e) Absence of proper brand name.

(f) Poor/unattractive packing system.

(g) Poor quality of products due to the application of traditional technology, resulting In
poor market,
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(h) Stiff competition from other major suppliers.

(i) Lack of a well defined and well knit channel of distribution for marketing.
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5. Lack of Stability and Unity Especially among women SHGs:

In the case of SHGs dominated by women, it is found that there is no stability of the units
as, many married women are not in a position to associate with the group due to the shift
of their place of residence. Moreover, there is no unity among women members owing to
personal reasons.

6. Exploitation by Strong Members:

It is also observed that in the case of many SHGs, strong members try to earn a lion’s
share of the profit of the group, by exploiting the ignorance and illiterate members.

7. Weak Financial Management:

It is also found that in certain units the return from the business is not properly invested
further in the units, and the funds diverted for other personal and domestic purposes like
marriage, construction of house etc.

8. Low Return:

The return on investment is not attractive in certain groups due to inefficient

management, high cost of production, absence of quality consciousness etc.

9. Inadequate Financial Assistance:

It is found that in most of the SHGs, the financial assistance provided to them by the
agencies concerned is not adequate to meet their actual requirements. The financial
authorities are not giving adequate subsidy to meet even the labour cost requirements.

10. Non-co-operative Attitude of the Financial Institutions:

The Financial Institutions do not consider SHGs seriously while providing finance and
other help.

11. Inadequate and ill-trained staff to meet the challenges:

The attitude of the staff of the rural development department is not encouraging. They are
not well trained to accept the challenges and equip the SHGs self-reliance.

12. Inadequate Support from Line Department:

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For obtaining assistance and support, the group members have to approach the line
officers. However the line officers are not co-operative with the SHGs. This will hamper
the very objective of the schemes.
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Research design
1. Methodology: 4.1A

During the process a detailed study was conducted to understand the genesis Self Help Group-Bank
Linkage model of Microfinance and the factors impacting the empowerment of the rural poor. The
factors effecting the functions of SHGs, NGOs and Banks in Raigad District.

a) The Secondary Data Collection:

The survey involved with review of literature and publications reports of government bodies like RBI,
NABARD, Planning Commission, DRDA, Public Sector Banks, Local Panchayats and the research
reports and case studies from various Microfinance Institutions and NGOs.

b) The Primary Data Collection:

Involves required discussions with experts from Bankers, SHGs, NGOs who has been involved with
SHG-Bank Linkage Program, related activities and with personnel related/non related with SHG-Bank
Linkage using direct interview methodology, email and questionnaires.
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c) The Field Survey:

A Pilot study was conducted with a sample 100respondents covering all the classes from SHG-non
SHG. A good rapport was first established with the respondents with the help of senior bankers and
academicians already associated with NGOs and SHG activities, especially from those have deep
understanding of the tribal habitability and their livelihood practices. The questionnaire is designed
in such a way to obtain information of socio, economic, and cultural activities from individuals and
no.of accounts and NPAs Bankers.

The analysis on data collected for pilot study was analysed to find out the suitability of the
questionnaire and the information collected. Consequently the questionnaires were modified with
consultancy with the experts from NABARD, Guide and other subject related experts.

i) Type of Questionnaires:
To achieve the purpose three different questionnaires for the study of 1) Individual those not
involved in SHG activities or not aware, 2) Those involved in SHG and Bank Linked and 3) Banks
were prepared.

ii) Questionnaire Design:

where questions are pointers and open ended so as to facilitate a discussion, to understand the issues
involved in SHG formation criteria, members socio-economic background, bankers role in the SBLP
operations and its impact on their development. These tools are targeted to obtain in-depth
understanding of the concept of “SHG-Bank Linkage Program” its operational conditions at
sample/targeted area.

d) The Data Acquisition stage:

This stage is a combination of collecting data from the contact points such as NGOs, Local
Panchayats, District Collector, Welfare Officers, Lead Bank Officer of the respective Banks (Bank of
India).

e) The Data Analysis:

This would involve analyzing the data collected and would also include ensuing the quality of data
also.
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2. Sample Design:
The structured questionnaires were administered to the following samples: 4.1

S.No Organisation Total Sample Targeted sample Actual Collected

01. SHGs
a) Visakhapatnam,
Raigad, & Thane, 2500 400 400

02 Individuals 7000 4200 3072

03. Bankers, Chairman of the SHGs 450 124 123

Total 13900 4724 3595

3. The criteria used for sample selection:

Though the SHG activityhelp economic empowerment of women, the change in their familial and social
status and sense of organizational bonding, the awakening of self confidence and self-respect, social
and political awareness; is a slow process and to achieve it, a member should have sufficient
experience of well established and well run SHG.

Hence the following criteria were used for sample selection(as per NABARD guidelines for suitable
SHGs):

1) The SHG should be 2 to 3 years old.

2) The sample should be representative of the entire district. Hence the study tried to cover more
Talukas & Tahsils from the district.

Secondary Research:
The secondary data were collected from the Annual Reports and administrative guidelines of the
Ministry of Rural Development, Government of India as well as from the classified data available
with the Offices of the states and SGSY coordinating departments of the districts of Visakhapatnam,
Thane and Raigad.
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Data interpretation
Case study
Development economists like Bang et al (2002), Godbole (2002) and Patel (2003) as well as
newspaper reports have highlighted the problem of child malnutrition and starvation deaths in rural areas
due to abject poverty. Acharya and Ghimire (2005) and Kabeer (2005) define economic poverty as lack
of income necessary to satisfy basic needs like food, clothing and shelter. Human poverty includes
reduced capabilities such as illiteracy, malnutrition, poor maternal health, lack of access to medical
services and death from preventable diseases.

semi-urban or urban areas for enabling them to raise their income levels and living standards.
Chiranjeevulu (2003), regards SHGs as a model for “harvesting women’s collective strength for poverty
alleviation”. Millions of poor women, struggling to make a living through home-based enterprises or
tiny initiatives in the informal sector, desperately need small amounts of credit to break their dependence
on middlemen. The availability of credit without collateral on easy terms has enabled these enterprises
to survive.

Bernardshaw (1999), Sarangi (2003) and Tripathy (2004) have highlighted the fact that women-led
SHGs as a medium of microfinance is gaining momentum in the endeavour to alleviate poverty of the
marginalised sections and tribals and empowerment of women. The credit needs of the rural poor are
determined in a complex socio-economic milieu where it is difficult to adopt a project-lending approach
as followed by banks and where the dividing line between credit for ‘consumption’ and ‘productive’
purposes is blurred. Under the circumstances, a non-formal agency of credit supply to the poor in the
form of an SHG of the poor could emerge as a promising partner of the formal agencies. Kannabiran
(2005), optimistically points out that the feminisation poverty, a serious concern so far is now giving
way to the feminisation of microcredit.

Credit targeted to women was more likely to benefit a whole family whereas in the case of men it is
not so. Women make productive use of credit for self-employed micro-enterprises and are prompt in
repayments, with average repayment rates above 90 per cent, much better than recoveries under normal
lending. They are also more responsive to peer pressure and hence the default rate in payment among
women is almost nil. Women are not only much better borrowers than men but they also exhibit a whole
range of human skills.

However, historically access and terms of credit have discriminated against women. The
marginalisation of rural women with respect to credit was causative in the emergence of SHGs. The
micro -credit programme for women through SHGs plays a significant role in improving the standard of
living and family welfare (Usha, 2003). Studies conducted by Muthayya (1980), Misra (1994),
Sithalakshmi and Jothimani (1994), Mishra (1999), Steele et al., (2001), Swaminathan (2002),
Chiranjeevulu (2003), Sarangi (2003) and Kabeer (2005) have highlighted the fact that it has a positive
impact on economic growth and the social status of women.
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Das (2000) has highlighted the significance of Mahila Mandals - the traditional local organisations of
women in gender politics in Thane district. Mahila Mandals are groups of women that seek to build a
collective of women for joint action and provide forums to articulate the practical problems of village
women. Studies conducted by Sithalakshmi and Jothimani (1994), Usha (2003) and Narasaiah (2004)
have pointed out that women’s income tends to be consistently utilised for expenditure on health and
nutrition which benefit the whole family.

Microfinance as a tool for empowerment of the poorest of the poor was pioneered by Bangladesh’s
visionary banker Professor Muhammad Yunus founder of the Grameen Bank an endeavour for which he
was awarded the 2006 Nobel Peace prize. Microfinance a buzzword in almost all the developing
countries refers to provision of small amounts of finance to the poor, especially women in rural areas
with flexible repayment facilities at reasonable rates of interest. It envisages mobilising thrift and
supplementing it with a loan from financial institutions. Lieten (1998) has rightly quoted Grameen Bank
director Muhammad Yunus, “Small credits to individual families, mostly women, as members of a
control group, are supposed ‘to refer poverty back to the museum.”

A Self-Help Group (SHG) is a group that consists of about 10 to 20 persons of a homogenous class
who come together with a view to address common problems. Voluntary savings are collected on a
regular basis and the pooled resources are used to make small interest bearing-loans to members. In the
dark environment of credit indiscipline, Women’s Thrift and Credit Societies have emerged as torch
bearers of thrift and self-reliance (Parthasarathy, 2003). In performing this function, they also emerge as
training grounds for economic democracy of women.

SHGs have become a powerful source for identification of problems and intervention. Regular
meetings of the SHGs serve as a useful forum to women who otherwise live in isolation. Besides
focusing on entrepreneurial development of the beneficiaries and the village as a whole, the groups
undertake the responsibility of delivering non-credit services such as literacy. Adult education hopes to
remedy the educational deprivation of the adult population in order to develop their full potential and
make the development process sustainable.

Women’s SHGs are spreading a silent revolution in terms of economic and social empowerment
across poverty-stricken swathes of rural India (Roy, 2006). Jawaharlal Nehru has rightly stated, “The
greatest revolution in a country is one that affects the status and living conditions of its women”
(Thenmozhi et al, 2002). Remedios (2006) quotes Patankar-Mhaiskar who characterises the SHG
movement of tribal women as a revolution of sorts. The study substantiated the view that the normally
submissive and weaker sections suddenly begin to feel empowered. Small economic activities may not
even make a dent on the economy of the State but they work wonders for the rural woman who is
otherwise at the mercy of her environment.

The main objective of the study is to examine the impact of SHGs as a poverty-alleviation tool. It
aims at exploring the impact of SHGs on standard of living and family welfare.
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Inorder to examine the impact of SHGs on poverty-alleviation, Talasari taluka in Thane district of
North Maharashtra, India was chosen. The improvement in employment, income, quality of diet,
housing structure and female literacy through SHGs were explored.

The study is based on both primary and secondary data. Secondary data was collected from relevant
articles, reports, Economic Surveys of India and Maharashtra, Block Development Officers’ records
from the Panchayat Samiti and bank records. An extensive literature review, a series of discussions and
a pilot visit were instrumental in preparing two detailed questionnaires. The questionnaires were
bilingual i.e. the questions were worded in English and Marathi as the population covered was
predominantly Marathi-speaking. The first questionnaire was aimed at obtaining information about the
SHG as a whole while the second one tried to obtain information about individual members. The
questionnaire relating to individual members was divided into three parts. The first part dealing with
personal details of members, Part A dealing with the details of members before joining the SHG and
Part B with the details of respondents after joining the SHG.

Secondary data pertaining to SHGs was collected between October and December 2003. A pilot
survey was undertaken in May 2004 to test the questionnaires in the village of Karazgaon in Talasari
and accordingly the questionnaire was modified to accommodate relevant entries. Primary data was
collected in the period between October 2004 to May 2005 through the interview method, structured
questionnaires and observation. Due to the homogeneous nature of the population Simple Random
sampling was used. The questionnaires were directly administered by the researcher by door-to-door
visits to the dwelling units of the respondents. In many cases data was collected from respondents at
their workplaces such as fields, flour mills, retail shops, vermiculture – compost pits or at the Gram
Panchayat where they had gathered. Actual observation of their lifestyles corroborated the veracity of
the data collected through the questionnaire.

Primary data was collected from 39 female SHGs out of the then existing 85 female SHGs and the sub-
sample consisted of 201 female respondents. Thus the size of the sample was 45.88 per cent of the
universe.

Number of Members
No. of
Sr. No. No. of members SHGs
30
1 10 (76.93)
09
2 Between 10 - 20 (23.07)
39
Total (100.00)
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More than three -fourths of the SHGs viz. 30 (76.93 per cent) had 10 members while 9 (23.07 per
cent) had between 10 to 20 members.

Age Profile of Members

Sr. No. Age category No. of respondents
1 18-25 32 (15.92)
2 25-35 101 (50.25)
3 35-45 44 (21.89)
4 Above 45 24 (11.94)
Total 201 (100.00)

Around half the respondents i.e. 101 (50.25 per cent) were between 25 and 35 years of age. A
sizeable number of respondents viz.24 (11.94 per cent) were from the age category above 45. This age
group was generally considered to be less productive both by Bank personnel and members.

Marital Status
Sr. No. Marital Status No. of respondents
1 Unmarried 02 (00.99)
2 Married 193 (96.02)
3 Widowed 06 (02.99)
Total 201 (100.00)

Out of the 199 married respondents, the maximum number of respondents viz. 97 (48.75 per cent) had
three to four children, 57 (28.64 per cent) had upto two children, 40 (20.10 per cent)
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Findings & suggestions

The following suggestions are offered to minimize the above

mentioned issues of SHGs:
1. Information about locally available materials and their varied uses should be disseminated
to SHGs. Proper encouragement and training should be given to them to make innovative
products by using these materials. In order to have a knowledge base about the availability of
materials, in panchayat levels, surveys can be conducted under the auspices of local
authorities.

2. In order to solve the various problems relating to marketing of SHGs, the state level
organisations should extend the activities throughout the state instead of limiting its
operations in a particular area.

3. Various SHGs functioning in a particular panchayat area can form a co-operative society.
This society may be entrusted with the task of marketing the products of different SHGs
under a common brand name. Further, the society can undertake sales promotion activities
and procure rare raw materials for the benefits of member SHGs.

4. Non-Government Organisations (NGOs) can play a significant role in empowering women

entrepreneurs by providing basic education, motivation training, and financial help and so on.

5. All the members in the SHGs may not have the same caliber and expertise. NGOs can
identify the inefficient members of the group and can impart proper training to them in order
to make them competent. For this purpose, short term training programmes can be arranged at
the panchayat level.

6. Frequent awareness camps can be organised by the Rural Development department

authorities to create awareness about the different schemes of assistance available to the
participants in the SHGs.

7. Lastly, arrangements may be made by the financial institutions for providing adequate
financial assistance to the SHGs strictly on the basis of their actual performance without any
discrimination of caste, politics etc.

In the emerging changes in the values and attitudes of the members of the SHGs are a clear
manifestation of socio-economic empowerment interventions yielding relatively quicker
results. each other and promote all-round development of the children, the women, the
households and the communities.
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References

INTERNET SITES

www.nabard.com
www.shg.com
www.wikipedia.com

BOOK

Poverty eradication and self-help groups – Dr. V. Neelamegam, Dr. R. Dhanasekar

National Bank for Agriculture and Rural Development(NABARD) – T. Balakrishnan
NABARD & its uses in agriculture – Vinod Gokhale

Signature of Student Signature of Guide

ANVESH PULSHETTY DR. JHARNA KALRA
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