CHAPTER 1

INTRODUCTION

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INDUSTRY SCENERIO

There are about1.39 billion people in India and half of the population are still under
poverty. Government and NGOs responded with planned and promised to work together
the realization of the situation. With this regard microfinance is formed to provide financial
Services to the poor and its primary aim is to alleviate the poverty. UNO celebrated year
2005 as a year of microcredit worldwide as effective mean against Hunger and Poverty
mainly in developing countries. Microfinance mean services to provide micro credit. This
micro credit is a very effective means against hunger and poverty mainly in developing
countries.

Micro financing is a form of giving credit to giving short term loans to the individuals and
working capital loans to micro entrepreneurs. Poverty level of a country is measured by
economic development. The economics with positive growth rate of gross national product
were measured by their poverty. Micro finance is not a new development, many
developing and developed countries have long history of micro finance. 18th and 19th
century many European countries have evolved as informal banking for poor. Europe leads
the foundation of microfinance and self-help groups. History it is seen that self-help group
leads to financial innovation legally banking and conductive regulation and creating mass
micro finance movement. But the commercial banking brought it down because of their
low production of loan. After that many groups formed and started to lend interest free
loans and during repayment many processes were formed.

In India, micro financing is been formed in 1980’s as solution for poverty and to empower
women. Micro finance face lot of challenges in India (like accessibility in rural area).
Micro financing is a non –formal banking service provided to those who can’t access the
financial support from the formal banks.
The individuals have to keep some asset as collateral to get the financial loan. If they don’t
have the asset, I will become hard for them to get the financial help. So, in this case
microfinance helps in getting the financial helps to the individual. They are targeted at
low income and unemployed fraction of the population. Many institutions are there who
helps the micro finance group in getting loan and starting the bank account, some other
micro financial helps.
The post-nationalization period in the banking sector witnessed a substantial amount of
resources being earmarked towards meeting the credit needs of the poor. There were

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several objectives for the bank nationalization strategy including expanding the outreach of
financial services to neglected sectors. As a result of this strategy, the banking network
underwent an expansion phase without comparable in the world. Credit came to be
recognized as a remedy for many of the ills of the poverty. There spawned several pro-poor
financial services, support by both the State and Central governments, which included
credit packages and programs customized to the perceived needs of the poor. While the
objectives were laudable and substantial progress was achieved, credit flow to the poor,
and especially to poor women, remained low. This led to initiatives that were institution
driven that attempted to converge the existing strengths of rural banking infrastructure and
leverage this to better serve the poor. The pioneering efforts at this were made by National
Bank for Agriculture and Rural Development (NABARD), which was given the tasks of
framing appropriate policy for rural credit, provision of technical assistance backed
liquidity support to banks, supervision of rural credit institutions and other development
initiatives. In the early 1980s, the Government of India launched the Integrated Rural
Development Program (IRDP), a large poverty alleviation credit program, which provided
government subsidized credit through banks to the poor. It was aimed that the poor would
be able to use the inexpensive credit to finance themselves over the poverty line.
Also, during this time, NABARD conducted a series of research studies independently and
in association with MYRADA, a leading non-governmental organization (NGO) from
Southern India, which Showed that despite having a wide network of rural bank branches
servicing the rural poor, a very large number of the poorest of the poor continued to remain
outside the fold of the formal banking system. These studies also showed that the existing
banking policies, systems and procedures, and deposit and loan products were perhaps not
well suited to meet the most immediate needs of the poor. It also appeared that what the
poor really needed was better access to these services and products, rather than cheap
subsidized credit. Against this background, a field was felt for alternative policies, systems
and procedures, savings and loan products, other complementary services, and new
delivery mechanisms, which would fulfill the requirements of the poorest, especially of the
women members of such households. The emphasis therefore was on improving the access
of the poor to microfinance rather than just Micro-credit. To answer the need for microfinance
from the poor, the past 25 years has seen a variety of microfinance programs promoted by the
government and NGOs. Some of these programs have failed and the learning experience from them
has been used to develop more effective ways of providing financial services. These programs
vary from regional rural banks with a social mandate to MFIs. In 1999, the Government of India
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merged various credit programs together, refined them and launched a new program called
Swaranjayanti Gram Swarozagar Yojana (SGSY). The mandate of SGSY is to continue to provide
subsidized credit to the poor through the banking sector to generate self-employment through a
self- help group approach and this program has grown to an enormous size.

THEORETICAL BACKGROUND

In India, the first initiative to introduce microfinance was the

Self-Employed Women’s Association (SEWA)

This group was established SEWA Bank in 1974 in Gujarat. Since its establishment, they are
providing the financial services whoever wish to grow their own businesses in rural areas. One
of the successful initiatives is “Kudumbashree’’ the Kerala state’s poverty Eradication
Mission that was launched in 1998. Kudumbashree is a female-led community
organization who join together for the welfare of themselves. NHG (Neighborhood
Groups) helps women work on a variety of issues like health, agriculture etc. They collect
income and lend microcredit to the needed under the scheme. Small scale initiatives are
promoting financial independence in underprivileged areas. These microfinance groups
help the women to become independent and empower themselves and uplift themselves
with their family.

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The main objective of the micro finance should be promoting the social and economic development
at the grassroots level through empowering women and increasing the household income.

Does not reach the deserving poor

The microfinance delivery models fail to fail to focus on people who are below the poverty
level as they are deemed to be risky. Selecting the beneficiaries for the scheme should be
economically stable individual. The poor are too risk – averse to borrow. The benefits
should be only to a limited extent from then micro finance schemes.

Limited spread in the poorer stated

Micro financing program is low in those states where a large percentage of the population
lives in the poverty. Places like Chhattisgarh, Jharkhand, Madhya Pradesh etc. are lagging
behind in implementation of microfinance schemes. The main reason of the delay is the
less support from the state government, local culture and practices and concentration of
MFIs in these states.

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High interest rates
Borrowers are interest-sensitive, so the capacity of borrowing decreases with an increase in
interest rates. Many MFIs charge more interest from the poor who don’t borrow the loan. Due
to informal way of financial service provided to people, the groups have right to fix the interest
rate. No other official can interfere in their business. These group even charge high transaction cost
which is more than a bank charges. There is no control on these institutions or groups.

Current Scenario of microfinance and self-help groups in India

The word 'Microfinance' was not a new concept. Earlier people either saved their money or
took loans from individuals or groups in order to meet their requirements like for new
farming venture or for starting a small business. The main aim was to promote
development, pay off debts and to get a higher standard of living. Microfinance is an
important resource for the facilitation of services to the poor, rural, underdeveloped
population of the country.
In the present scenario, the World Bank states that there are over 10,000 Microfinance
Institutions available for the developing countries but the sad reality is only 5% has
reached to the poor for the potential market. In 2004, Reserve Bank of India (RBI)
granted banking license to Kotak Mahindra Bank and Yes Bank. In 2014, after a decade
RBI issued banking license to Bandhan and IDFC. The Kolkata based Bandhan contributed
a lot in providing microfinance to the rural population and IDFC had already established in
lending microfinance. As per 2016-17 statistics by NABARD, Self-help groups has shown
a big jump to 85.77% from79.03% in 2015-16 and 76.97% in 2014-15. The highest
number of Self-help groups with savings linkage was shown in the year 2016-17.

Microfinance assists in the welfare of the poor section of the society by providing means
of saving money, insurance and borrowing money. The larger part of microfinance
beneficiaries are the women. As the women are getting monetary funding, they are getting
empowered and they in also indulge in economic activities. They make their independent
decisions and hence increase their status in the society.

In the present scenario, women's self-help groups have shown a positive response in the
development of the society. During the COVID-19 pandemic several Self- help groups
have showcased their worth in fighting the coronavirus. So far, Women Self-help groups
have produced more than 19 million masks by some 20,000 SHGs across 27 Indian states.
Other than that, they are meeting shortfalls in masks, sanitizers and protective equipment,
running community kitchens, fighting misinformation and even providing banking and
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financial solutions in the communities. In the last twenty years women Self-help groups
have grown from credit and small savings groups to one of the largest departments for the
poor. In the current situation, about 67 million women are part of 6 million Self-help
groups.
Over the past two decades of the Bank’s association, India’s SHG movement has evolved
from small savings and credit groups that sought to empower poor rural women, into one
of the world’s largest institutional platforms of the poor. Today, 67 million Indian women
are members of 6 million SHGs.
The Self-help groups of women are getting immense support from the Government of
India. The introduction of National Rural Livelihood Mission (NRLM) which is co-funded
by the World Bank. NRLM has successfully managed to get Self-help groups across 28
states and 6 Union Territories of the country which makes it to reaching to 67 million
women. The recent statistics show that women have saved 1.4 billion dollars and has also
got about 37 billion dollars from the commercial banks.
In Kerala, the Kudumbashree women about 4.4 million in number completed the challenge
by running a large kitchen to provide food to the people in quarantine as well as to the
bedridden people. Presently 1,300 kitchens are being ruled by this network to provide the
best catering services. The kudumbashree self-help group women also engaged in 'Break
the chain campaign' and promoted handwashing, social distancing. They also engaged in
social campaigns by phone messages.
In Bihar, the state's SHG platform named Jeevika is providing health education about handwashing,
quarantine and self-isolation by songs, videos, leaflets, phone messages.

In Jharkhand, where large numbers of people migrate to other states to work, they are
running a dedicated helpline for returning migrants and other vulnerable families as well as
they are also assessing the population to identify the poverty, hunger and starvation so that
rapid advancements can be made to curb them.
To conclude, Microfinance plays an important role in social, economic, psychological
development of India. It aids 8n rural development especially the Self-help groups.
Microfinance also leads to more women participation, increase confidence, more skill
development, courage, improvement of women status, abundant welfare activities, rise in
the standard of living and great deal of relief is seen through microfinance.

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 CHAPTER 2

REVIEW OF LITERATURE AND RESEARCH DESIGN

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2.1 REVIEW OF LITERATURE

Noreen Sara and Khan Ali Ejas Rana performed case study on 2011 on microfinance and
women empowerment of District Bahawalpur, Pakistan based on the primary data from
2002 to 2009. The samples were the urban and rural females who have microfinance aid.
Sample size was 6000. The data for the case study was collected by door-to-door visit and
we're interviewed by administering a structured interview taking one respondent at a time.
The sample respondents were illiterate. Multiple linear regression analysis technique was
used to traverse determinants of empowerment of women. The interview medium was
Urdu. Using series of modules determinants of women empowerment were constructed.
The case study concluded on assessment by multivariate regression technique.
The common difficulty faced which disrupted ordinary least square was heteroscedasticity.
The model one results explained that women empowerment is positively related to age,
number of sons, father's assets, and amount of loan availed and is negatively related to
current marital status of the women. The results elaborated the fact that age of women
positively affects the empowerment of women at household level. Second model results
described with sample of female loanees has shown positive relation to the number of
children and amount of loan availed and negative relation to current marital status in terms
of women empowerment. It contradicts with model one in which education of husband or
head of family or father had increased impact on women empowerment and decreased
impact on the current marital status of the women. The results of the third model proved
that empowerment of the women is directly proportional to the age of women and father's
assets and negatively associated with the present marital status. The study concluded
based on the results that amount of loan subject to loan which is utilized by women must
be increased as well as through inspection must be done to understand that loan amount is
used by women of family members this all will contribute to women empowerment.
Hashemi M. Syed, Schuler Ruth Sidney and Riley P. Ann performed ethnographic
research about rural credit program and woman empowerment in Bangladesh in six
villages during 1991-1994 to estimate the difference occurring in woman role, status and
the norms related to reproduction. The total

sample size was 1300 married women under the age of 50. Method of data collection was
through participant observation and informal interviews credited with varieties of
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structured instruments. Four separate samples were drawn using random multistage cluster
design so that the villages from all the four geographic locations are present. Four
operational measures of survey variables were used such as empowerment indication,
indicator of contribution to the family support, exposure to credit programs and lastly the
control variables. The study concluded that the success of Grameen bank, BRAC and other
similar programs in Bangladesh provocateuse the innovation that is primarily socio-
cultural rules that prevents women from seeking paid employment. Employment of women
can be made on higher aspects by increasing women's consciousness about gender and
class relations and structuring them in more involvement for their rights. The existing
scenario proves that Grameen model is more effective in terms of reaching in bigger
scales to poor women as well as it's increased output for the women empowerment.

Kasnathan and Hunt in 2002 described on the importance of improvising income generated
activities. Data was collected from four non-government organizations, three present in
Bangladesh and one from India. The results of the study found that women receiving credit have
low control to market which in turn causes no access to control loans. Furthermore, the factors like
female education, marriage practice, mobility, violence against women, self-respect laid an
importance from micro- credit.

Malhotra et.al performed a study in 2005 based on conceptualization and operations in

terms of employment. The study threw light on the economic, social, familial,
psychological, legal and political aspects of women's job. The study concluded that
empowerment of women is a group work to be completed by individual women itself, the
government and the other institutions.
Cheston and Kuhh in 2002 described that ability to change power relation and women
empowerment through microfinance. The study found that microfinance contributed to
women empowerment but does not have its role in all areas of empowerment of women.
The empowerment indicator and measurement techniques were elaborated and discovered,
the relation between microfinance program, empowerment, family planning and cultural
norms. The study concluded

telling about impact on political empowerment and rights of women from microfinance.
Nosheen and Chaudhary described that for the development of the under- developed
nations women empowerment plays a vital role. Using regression analysis researchers
explored women empowerment keeping in mind it's multinational concept. Sample
collection was done from rural and tribal areas of Southern Punjab. Four parameters were

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made for cumulative index analysis. Women had less knowledge about basic facilities
which proved the results that there is a successful impact by age, marital status, views on
empowerment of women.
In 2007, Rehmann and Khan discussed about microfinance in Bangladesh. They
discovered how poor people improved their living standards through microfinance.
Conclusion was made that improvisation of collateral loan is applicable for poverty
eradication, health status improvement, education, legal rights, sanitation and other living
standards. The housewives must be provided with good scopes for self-employment for
better security, autonomy, self- confidence and status improvisation within the house
which leads to women empowerment.
The earliest studies which was most cited about microcredit and poverty eradication
was done in 1976 by Hulme and Mosley. The authors completed the study by
implementing control group approach while checking for deviation in the earning of
household villages benefitted through microcredit program and changes to similar homes
without non- program. Sample was collected by taking survey between 1988 and 1992in
countries including Bangladesh and Indonesia. In control group average increase was
found by 10-12% in Indonesia while around 30% increase was found in Bangladesh.
In 1991 and 1992 Bangladesh Institute of Development studies and World Bank performed
empirical study amount 1798 household from 87 villages from the rural Bangladesh. This
Quasi- experimental study found on three major microfinance institutions: Grameen Bank,
Bangladesh Rural Advancement Committee, Bangladesh Rural Development Boards. After
controlling factors like household characteristics double- difference approach was used
between eligible and non-eligible homes. The study showed a positive impact especially
on female loaners by increasing household consumption through microcredit program.
Banarjee, Duflo, Glennerster and Kinnan conducted studies, randomised evaluation
approach was used for the study. The sample size was 104. Randomly
52 villages were confirmed and were invited for the opening of Spandana microfinance
branch. Study was conducted on 6850 households after teaching about microcredit to the
village households. The results showed a successful impact on new start-up businesses as
well as rise of the old business due to the microcredit facility newly emerged in the area.
Kabeer evaluated the relationship between microcredit and women empowerment in
2001. He completes the study by interviewing the samples both male and female from two
provinces in Bangladesh. She argued that testimonials given by the women would prove
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more beneficial than the survey method which categories on the given information rather
than going to depth view. The study concluded on the fact that women of given microcredit
had higher self-esteem and higher capital it will also lead to more working hours which
will finally cause increase in the total household income and more contribution by the
women in the house leading to more independency and better decision-making powers in
the hands of women causing a successful empowerment of women.

2.2 STATEMENT OF PROBLEM

In India, microfinance plays a vital role in providing financial service in backward areas
and to poor. But the main problem society face is whether they are really helping the
society and is there any improvement in living standards, women have any benefit from the
microfinance. Rural women play a key role in supporting their households but when it
comes to their personal development, they face many challenges. Major problems that are
observed are:

• Lack of awareness.

• Not updated on new policies and schemes.

• Improper regulations.

• Lack of adequate loan or equity capital to increase loan-able funds.

• Insufficient support from the government.

2.3 NEED OF THE STUDY

Micro financing is the way of financing the poor with minimal interest. In India, micro finance
is the one of the best ways of raising fund without any involvement of bank or government.
This study is conducted to whether women can generate self-employment or not and how they
arrange the money for deposit. And it also helps us to know the participation of microfinance
in reducing poverty in India. This study helps in analysing microfinance assists the poor by
raising income, providing access to education and self-empowerment.

2.4 OBJECTIVE

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  To study whether the women got benefited by micro financing.

 To study the allocation and advancing the micro finance fund by the Self
Help Group.

 To study the improvement in SHG scheme.

 To understand the concept and delivery models of micro financing.

 To analyze whether micro finance helps in poverty alleviation.

2.5 SCOPE OF THE STUDY

The study is conducted at rural area of BALUSSERY, KOZHIKODE, KERALA. This

study is to know about the women in the Balussery area are benefited by micro finance.
And to know about the schemes, that are helpful to the women to uplift their lively hood.

2.6 OPERATIONAL DEFINATION OF THE CONCEPT

Microfinance:

Microfinance is an economic development approach that involves providing financial

service, through institutions, to low –income clients, where the market fails to provide
appropriate services. Services like credit saving and insurance services, training and
education, organizational support, health and skills in line with their development
objectives.
Micro-credit:

It is the service or credit given to the poor borrowers who can’t take loans from the
traditional banks. Mostly small loans taken by the entrepreneurs who are poor. In
developing country, the micro credit is taken by the poor people to engage in self-
employment projects.
Micro finance institutions (MFIs):

Micro finance institution is an organization, who provide micro credit loans and other
financial service to poor borrowers for income generating and self-help employment

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activities. These institutions are usually Non-Government Organization (NGO).

SHG

A self-help group (SHG) is a committee of financial institutions that usually consist of 10

to 20 local women or men between the age group of 18 to 40. For a few months, members
also make small periodic savings contributions until there is enough money in the
community to start lending. For some cause, funds could then be lent back to the members
or to those in the village. In India, several SHGs are correlated with banks.

2.7 RESEARCH

The study is conducted at rural area of BALUSSERY, KOZHIKODE, KERALA. This

study is to know about the women in the Balussery area are benefited by micro finance and
also to know whether their standard of living has increased or not.

2.7.1 METHODOLOGY

The tool of analysis which we have used for analysis of data is percentage analysis.
Percentage analysis is the method to represent raw streams of data as a percentage for
better understanding of collected data and Chi-squared test is also done.
For pictorial representation of various Tables, Bar Graph and Pie chart as being used for
the study.
2.7.2 DATA COLLECTION

The research design for the study exploratory and analytical. Data was collected from
Primary and Secondary sources. Secondary sources of data include research articles
published in journals, research reports of various institutions. Primary data was collected
by issuing questionnaire to the selected people.

2.8 LIMITATIONS

 Limited time was available for collection of data.

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 The sample is collected only from one taluk. Hence it may not represent
the whole population.

 Lack of response from the respondent side.

 Difficulty in finding the resources.

CHAPTER 3

PROFILE OF THE MICROFINANCE

INDUSTRY

15
3.1 ORIGIN

The concept of micro financing is much older. During 15 century, informal financial
institution in Nigeria was formed. It was established in Europe during 18th century due to
enormous increase in poverty during European war. In 1720, the first loan fund was
targeted poor people in Ireland by the author Jonathan swift. After the law passed in 01823
which allowed charity institution to become formal financial intermediary. The
government had introduced a cap for interest rate in 1843. They had provided 20% of
financial service to Irish household. Friedrich Wilhelm Raiffeisen created credit
cooperative in Germany in 1847 and served like 1.4 million people in Germany by
1910. He created this institution with an objective to control the money for economic
improvements and to improve the moral and physical value of people. The Dutch colonial
administrators constructed a Cooperative Rural banking system in Indonesia based the
Raiffeisen model which is known as bank Rakyat Indonesia, which is the largest MFI in
the world.

3.2 EVOLUTION OF MICROFINANCE IN INDIA

Since 1950, governments and international donors have been assessing subsidized credit
for smaller holder farmers in developing countries. They have started with increase in
agricultural productivity development financial institutions to give credit to the farmers.
Unfortunately, the failure of state in implementing credit scheme was found. In 1960 and
1970 the middle- and upper-class farmers benefited in increasing agricultural productivity
through intensive use of inputs but poor remained poor only. Main reason for state failure
of credit provision were political interference in between the fund allocation and failure to
collect the loan from customers and lack of institution. Microfinance began to develop as
an industry since 1990. In 2000s the objective of the microfinance to meet the requirement
or satisfy the demand in large scale.

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3.3 COMPETITORS OF MICROFINANCE
3.3.1 BELSTAR INVESTMENT AND FINANCE PRIVATE LIMITED

Belstar is non-banking financial company, which is subsidiary of Muthoot Finance

Limited. The company has successfully changed into profitable and potential microfinance
institution with low interest rate.

Logo of Belstar Investment and Finance LTD

3.3.2 JANA SMALL FINANCE LTD.

This bank is scheduled as commercial bank and established in Bangalore in 2008. It is

globally recognized as one of the most innovative financial institutions.

On September 2019, the bank had 270 outlets, 298 asset centres, 120 ATMs. Out of total
outlet 43% is in semi urban and rest is in rural area.

Logo of Jana Small Finance Bank

3.3.3 UJJIVAN SMALL FINANCE BANK

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Ujjivan Small Finance Bank (USFB) commenced their business as a in 2005 with mission
to provide financial help to the economically active poor. This is one of the dominating
small finance banks. The main focus of this bank to service the unserved and underserved
segments across the country. They are more focused in strengthening their services
digitally so that they can cover every corner of the country. As a responsible bank, they are
investing in community development and in other initiatives. From February 1, 2017 the
RBI gave license to USFB to commence its banking operation. They 55 lakh customers,
575 branches and 477 ATMs across 244 districts. They provide internet banking, mobile
application, Phone banking, 24*7 access to full service of the bank.

Logo of Ujjivan Small Finance Bank

3.3.4 SATIN CREDITCARE NETWORK LTD.

They launched its operation as a benefactor of individual and small business loans and
saving service to urban lender in 1990. They were converted into NBFC-MFI in November
2013. T There first IPO was during fiscal year of 1997. They were Delhi Stock Exchange
(DSE), Jaipur Stock Exchange (JSE) and Ludhiana Stock Exchange (LSE). They were
listed in NSE on August 26 and in BSE on October 20 during 2015. Satin credit care
incorporated Satin Housing Finance LTD. There primary business is based on the Joint
Liability Group model which allows us to provide collateral –free, microcredit facilities to
economically active women in both rural and semi urban areas.

Logo of Satin Creditcare Network LTD

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3.3.5 BSS MICROFINANCE LTD

BSS Microfinance Limited (Company) introduced microfinance as a Trust in 1998 by

taking over from Bharatha Swamukti Samasthe Trust which is an MFI started in 1997.
Later the Trust activities were moved over to the Company in April 2008. In the present
scenario the Company is carrying on its duties as a Business Correspondent of Kotak
Mahindra Bank Limited. The company provides microloans to the poor women in order to
provide an aid and create a source of income. The Vision of BSS is ' To see an India
where every child, woman and man can be the best that God meant for him or her to be,
without the burden of poverty'. Mission of this organization is to do large scale poverty
alleviation by providing micro-finance services to poor women, and through them to their
families, facilitating increased earnings, better money management, and life quality
improvement. BSS has spread its network to five states namely, Karnataka, Maharashtra,
Madhya Pradesh Tamil Nadu and Bihar.

Logo of BSS Microfinance LTD

3.3.6 Fusion Microfinance

Joint Liability Group lending model of Grameen- Fusion Microfinance is a registered

NBFC-MFI set up in the year 2010. Fusion Microfinance targets the unbanked women
living in rural and semi-urban areas and provides financial services to women
entrepreneurs. They also provide financial literacy services. The vision of Fusion
Microfinance "Fusion microfinance has a social vision and

business orientation aims to provide underprivileged women with economic opportunities

19
to transform the quality of their lives." Fusion Microfinance strives on a mission to get "A
self-sustainable financial institution which leverages the distribution network to channel
other products and services." Fusion generates value and equality growth for all its
stakeholders as well as keeping the main focus on the clients.

Logo of Fusion Microfinance

3.3.7 Future Financial Services Pvt Ltd

Future Financial Services Private Limited is a private organization found on 1996, October 14.
It is a private company registered at Registrar of Companies, Bangalore. The 24-year-old
organization has authorized share capital income Rs. 250,000,000 and its paid-up capital is Rs.
119,117,680. The current status of the company is integrated and the organization introduces
other financial intermediation other than that conducted by monetary institutions.

Logo of Future Finance service PVT LTD

3.3.8 Asirvad Microfinance Pvt Ltd

An IIT & IIM alumni Shri. S.V. Raja Vaidyanathan and his family members founded a NBFc
printed named Asirvad Microfinance Limited. In February 2015, Asirvad became a subsidiary
of Manappuram Finance Ltd. Asirvad Microfinance indulges in giving micro finance loans to
women population who are from poverty-stricken households. The mission of Asirvad
Microfinance is to organize groups of committed poor women and provide innovative
financial services in a sustainable manner with a view to Alleviate poverty through viable
income generation activities. Asirvad Microfinance has adopted a vision to empower the

20
members at the bottom of the pyramid by providing financial assistance. The organization has
esteemed values like, A - Acceptance. S - Support. I-Integrity. R - Resilience. V - Viable. A-
Adaptable. D- Dependable. Presently, it has a network of branches across 22 States in India.

: Logo of Asirvad Microfinance Limited

3.3.9 Mudra Microfinance

Mudra Micro Finance is a microfinance organization with a vision to be a new generation
Nidhi company that is committed to ensure maximum value to its members thereby improving
the standard of life of the society we serve. The company works to make its mission which is
to make financial services easily available; to promote poverty alleviation through the
development of a strong, sustainable economic infrastructure successful. Mudra Microfinance
covers lot of activities like Community, Personal Service and Social Activities, transport
vehicle facilities, Food products sector, Business loans for shopkeepers and traders, textile
products sector, agriculture and allied activities, equipment finance scheme, microcredit
program.

Logo of Mudra Microfinance

MARKET SHARE

Banks continued to lead, with 40 per cent of the industry's market share, followed by
NBFC-MFIs with 32 per cent, small finance banks with 18 per cent, NBFCs with 9 per
cent, while not-for-profit MFIs' share was 1 per cent.

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SWOT Analysis
STRENGTHS
 Introduction of services like savings, credit cards to the poor
underprivileged people.

 Decreasing poor people participation for loans among moneylenders and

informal organization.

 Creating more jobs and income through small companies.

 Classification of non-farm activities.

 Providing easy finances to increase the rural economic productivity.

 Engaging in wide range of services like saving, credit, insurance, training,

counselling etc.

 Creating strong foundation with the help of technical support, skill

development, training etc.

 Raise the standard of living.

 Promoting women empowerment by saving mobilization and capacity

building.

 Building stronger SHGs or community groups by enabling more

leadership qualities among the members.

 Discovering and creating more networks between banks and marginalized

citizens including women.

WEAKNESS

 Regional conflicts in providence of credit across the country.

 Bigger administrative cost/high repayment structure/increase rate of

interest

 Over lending and increase in debt.

22
 Decrease knowledge about finance among the people.

 Lack of co-operation and co-ordination among the loaners for e.g.,

Dropout and migration of people.

 Lack of proper regulatory organization or legal firms to check the

functioning of MFIS

 More conflicts among MFIs to get established in the market.

THREATS

 Rise of more competitions among MFIs.

 MFIS increase need to get established in the market leads to unnecessary

lending of loans to the non-essential projects, unproductive firms.

 Multiple loans to the same person/ organization ultimately lead to

unrecovered of loans causing in debt.

 SHGs peer pressure groups are not used for loan recovery.

OPPORTUNITIES

 Large population and communities in India are still not involved.

 Inculcating Banks support to the programed

 Increasing the scope of services from financial to non-financial and others

 Supporting and providing aid to members to invest in asset creation,

increasing the range of the job and improve their risk bearing capacity.

23
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATIONS

24
4.1 QUESTIONNAIRE DESIGN:

The primary data required for the research was collected using a questionnaire.
The questionnaire was designed on the basis of Likert scale. The questionnaire
was designed so as to obtain the views and perception of the customers. The copy
of the questionnaire is also placed at annexure. The sampling method used is
random sampling. The primary data is collected from 100 customers.

For the analysis of the questionnaire Chi-squared test, table pie charts and graphs
are used. This will help to get the exact information from the responses of the
customers. The number of responses for each question is identified and a
percentage of responses ratios are also calculated and is displayed in the table. The
interpretation from the data collected using the questionnaire is also discussed
below.

4.2 ANALYSIS AND INTERPRETATION OF DATA:

A total of 100 responses were collected through the questionnaire which is taken
into consideration for analysis.

25
4.2.1 ON THE BASIS OF AGE

Age Percentage of respondents

20-30 23

31-45 33

46-60 37

Above 60 6

Table 4.1: on the bases of age

26
 Age of the respondents

6%
23% 20-30
31-45
46-60
37% ABOVE 60

33%

Figure 4.1: on the bases of age

INFERENCE

23% of respondents comes under 20-30 age group, 33% of respondents comes under 46-60
and 37% of respondents comes under 46-60 age group but only 6% of respondents comes
under above 60 age group.

4.2.2 ON THE BASIS OF OCCUPATION

Occupation Percentage of respondents

Self Employed 13
Housewife 29
Working 23
Currently not working 34

Table 4.2: Occupation of respondents

27
 occupation of respondents

CURRENTLY NOT
WORKING
34

WORKING
23

HOUSEWIFE
29

SELF EMPLOYED
13

0 5 10 15 20 25 30 35 40

PERCENTAGE OF RESPONDENTS

Figure 4.2: Membership subscription of respondents

INFERENCE

29% of the respondents are housewife and 23% of them are working but 13% are
self-employed and 34% are currently unemployed.

4.2.3 MEMBERSHIP SUBSCRIPTION

Membership Subscription Percentage of respondent

100 22
500 45
1000 22
1000-2000 10

Table 4.3: On the bases of membership subscription with respondents

28
 Percentage of respondents
50
45
45
40
35
30
25 22 22
20
15
10
10
5
0
100 500 1000 1000-2000

PERCENTAGE OF RESPONDENTS

Figure 4.3: Occupation of respondents

INFERENCE

In this pie chart, 22% of the respondents pay INR 100, 45% of the respondents
pay INR 500, 22% of the respondent pay INR 1000. 10% respondents pay 1001-
2000.

4.2.4 TO STUDY WHETHER REGISTERED SHG IS BETTER

THAN NON-REGISTERED SHG

Better or not better Percentage of Respondents

Yes 100
No 0
Table 4.4: Do Registered SHG is better than Non-Registered SHG

29
 wheather registered shg is better than non-reg-
istered shg

100

yes no

Figure 4.4: Do Registered SHG is better than Non-Registered SHG

INFERENCE

100% of the respondents have voted that registered SHG are better than non-
registered SHG.

4.2.5 ON THE BASIS OF RATE OF INTEREST

Interest rate on Loan Percentage of Respondents

2 13
4 35

5 44
10 7
30
 Table 4.5: Rate of interest

Rate of interest
50
interest rate
45 50 44

40 45
35
35 40
30
35
25
30
20
25
15 13
10 20
7
5 15
0 10
2 4 5 10
5
PERCENTAGE OF RESPONDENTS
2 4 5 10

Figure 4.5: Rate of interest

INFERENCE
In different group, the loans are allotted in different interest rate to their members. 13% of the
respondents says that they get the loan at 2% interest rate, 35% of respondents at 4% rate,
44% of respondents at 5% and only 7% respondents at10% rate.

4.2.6 ON THE BASIS OF DISPERSAL OF MICROFINANCE FUND

Dispersal of Microfinance Percentage of Respondents

Give whole cash in your hand 22
Transfer the money to your 34

Account
Give money in installment bases 30
The group take loan from bank and 13

31
 allot you
Table 4.6: Dispersal of money to the respondents

Dispersal of microfinance fund

the group take loan from bank and 13

allot you

Give money in instsllment basis 30

Transfer money to your account 34

Give whole cash in your hand 22

0 5 10 15 20 25 30 35 40

percentage of respondents

Figure 4.6: Dispersal of money to the respondents

INFERENCE
The main reason for the diversion on loan payment is they use the money for purchase of
purchase vehicle, like you can see 37% of the respondents had spent the loan money on
purchase of personal vehicle, 35% on purchase repair of the asset, 27% in overcoming the
marriage expenses and only 3% are other reasons (like lending that amount to other person,
spending that money in unproductive way etc.).

4.2.7 ON THE BASIS OF PAY BACK OF LOAN AMOUNT

Whether respondent payback loan or Percentage of Respondents

not

Yes 68
No 32

Table 4.7: Does the respondents pay back loan amount

32
 Pay back of loan amount

No 32

Yes 62

0 10 20 30 40 50 60 70

percentage of respondents

Figure 4.7: Does the respondents pay back loan amount

INFERENCE
68% of the respondents pay back the loan but 32% of them don’t pay back.

4.3.8 ON THE BASIS OF DIVERSION FROM LOAN

PAYMENT

Diversion from loan payment Percentage of respondents

For marriage 24
For repair of asset 35
For purchase of personal vehicle 37

33
 Other reasons 3
Table 4.8: Diversion from loan payment

Diversion from loan payment

OTHER REASONS 3

FOR PURCHASE OF PERSONAL VEHICLE 37

FOR REPAIR OF ASSET 35

FOR MARRIAGE 24

0 5 10 15 20 25 30 35 40

PERCENTAGE OF RESPONDENTS

Figure 4.8: Diversion from loan payment

INFERENCE

The main reason for the diversion on loan payment is they use the money for purchase of
purchase vehicle, like you can see 37% of the respondents had spent the loan money on
purchase of personal vehicle, 35% on purchase repair of the asset, 27% in overcoming the
marriage expenses and only 3% are other reasons (like lending that amount to other person,
spending that money in unproductive way etc.).

4.3.9 WHETHER SHG HELPS THE RESPONDENTS IN

GENERATING INCOME

Whether SHG helps in generating Percentage of respondents

Income

34
 Agree 29
Neutral 61
Disagree 9
Table 4.9: Did SHG helps respondents in generating income.

Whether shg helps in generating income

DISAGREE 9

NEUTRAL 61

AGREE 29

0 10 20 30 40 50 60 70

PERCENTAGE OF RESPONDENTS

Figure 4.9: Did SHG helps respondents in generating income

INFERENCE

61% of the respondents says SHG may or may not generate income, 29% of the
respondents agree that SHG helped them in generating the income only 9% of the
respondents disagree with these statements.

4.3.10 THE DEPLOY OF SANCTIONED FUND

Deploy of sanctioned Fund Percentage of respondents

Producing household goods (like 32

35
 papad, pickle)
Making/Selling the mask 38
Converting the waste land into 26

cultivation land
Other reason 3

Table 4.10: Deploy of sanctioned fund

Deploy of sanctioned fund

OTHER REASON 3

CONVERTING THE WASTE LAND INTO CULTIVATION LAND 26

MAKING/ SELLING MASK 38

PRODUCING HOUSEHOLD GOODS 32

0 5 10 15 20 25 30 35 40

PERCENTAGE OF RESPONDENTS

Figure 4.10: Deploy of sanctioned fund

INFERENCE

32% of the respondent have invested the money in production of household

goods. 38% each of the respondents invested the money in producing the mask
and 26% converting the waste land into cultivation land. And remaining 3%
respondent have other reasons and everyone has invested in their new startups.

4.3.11 TO STUDY WHETHER THEIR LIVING STANDARD

HAS IMPROVED AFTER JOINING THE SHG

Whether living standard improved Percentage of respondents

36
 or not
Agree 36
Neutral 49
Disagree 14

Table 4.11: Does respondents’ living standard had improved after joining the SHG

Whether Living Standard Improved Or

60
Not

50

40

30

agree disagree neutral

Figure 4.11: Does respondents’ living standard had improved after joining the SHG

INFERENCE

49% of respondents have same living standard before joining SHG. 36% of
respondents agreed that their living standard has increased and only 14% of them
disagreed.

4.3.12 TO STUDY WHETHER THE SHG’S SCHEMES HAVE

IMPROVED FROM THE OLD SCHEME.

37
 Whether new schemes are improved Percentage of respondents
one from the old one

Agree 33
Neutral 48

Disagree 18

Table 4.12: Is new SHG’s scheme is better than old scheme

Is new SHG’s scheme better than old scheme

60

50

40

30

20

10

0
AGREE NEUTRAL DISAGREE

NUMBER OF RESPONDENTS

Figure 4.12: Is new SHG’s scheme is better than old scheme

INFERENCE

33% of the respondents agree that the new SHG schemes are better than old one
and 48% have neutral response. Only 18% disagree the statement.

4.3.13 WHETHER DID THE RESPONDENTS BECAME

INDEPENDENT AFTER JOINING SHG

38
 Whether respondent had become Percentage of respondents

independent after joining SHG

Agree 36
Neutral 45
Disagree 18

Table 4.13: Did Respondent become independent after joining SHG

Respondents become independent after joining SHG

DISAGREE

NEUTRAL

AGREE

0 5 10 15 20 25 30 35 40 45 50

NUMBER OF RESPONDENTS

Figure 4.13: Did Respondent become independent after joining SHG

INFERENCE
36% of the respondents agree that they have become independent after joining the
SHG and 45% of respondents don’t have any affect. 18% of respondents disagree.

4.3.14 WHETHER INTEREST RATE HAS GONE UP

DURING COVID PANDEMIC

39
 Whether interest rate has gone up Percentage of respondents

during covid pandemic

Agree 0
Disagree 80
May be 20
Table 4.14: Did Interest rate rise during covid pandemic

Did interest rate rise during covid pandemic

20

80

AGREE NEUTRAL MAY BE

Figure 4.14: did Interest rate rise during covid pandemic

INFERENCE

60% of the respondents have disagreed that the interest rate has not increased
during covid pandemic and remaining 40% are sure about the hike in interest
rates.

4.3.15 WHAT IMPACT HAD THE RESPONDENTS DURING

COVID PANDEMIC

40
 Impact on respondent during Percentage of respondents

covid pandemic
Positive 26
Neutral 51
Negative 22
Table 4.15: Impact on respondents during covid pandemic

Impact on respondents during covid pandemic

60

50

40

30

20

10

0
POSITIVE NEUTRAL NEGATIVE

Series 1

Figure 4.15 Impact on respondents during covid pandemic

INFERENCE

26% of the respondent have a positive impact during covid pandemic because they
have done something productive like they start to produce the household snacks
and pickles or started cultivation and 51% people have neutral impact and
remaining 22% have negative impact.

4.3.16 SUPPORT FROM GOVERNMENT

41
 Government help during covid Percentage of respondents

pandemic
Financial help 25
Provide jobs with daily wages 23
Provide food kit 52
Table 4.16 Government help during covid time

Support from government

FINANCIAL HELP PROVIDE JOBS WITH DAILY WAGES

PROVIDE FOOD KIT

Figure 4.16: Government help during covid time

INFERENCE

25% of the respondents says that the government have provided financial help and 52%
food kit and 23% of them have stated that they were provide job with daily wages.

4.3.17 WHETHER SHG HAD DECREASED THEIR SERVICES

DURING COVID PANDEMIC
42
 Had SHG has decreased there Percentage of respondent

services during covid pandemic

Yes 0
No 100
Table 4.17: Did SHG decreased their services during covid pandemic

Whether shg had decreased their services during covid

pandemic

YES 2nd Qtr

Figure 4.17: Did SHG decreased their services during covid pandemic

INFERENCE
All the respondents agree that SHG service has not decreased during covid pandemic

4.3.18 T test analysis

The analysis was done with the help of T-test in Microsoft Excel. It is done on
43
 the bases of ages and occupation of the respondents.
Factor

1. SHG helps the respondents in generating income.

2. Living standard has improved after joining the SHG.

T test for 2 sample of means

t-Test: Paired Two Sample for
Means

Variable Variable
1 2
Mean 33.33333 33.33333
Variance 664.3333 294.3333
Observations 3 3
Pearson Correlation 0.96074
Hypothesized Mean Difference 0
df 2
t Stat 0
P(T<=t) one-tail 0.5
t Critical one-tail 2.919986
P(T<=t) two-tail 1
t Critical two-tail 4.302653

Table 4.1 T test analysis table

INFERENCE
Since p-value of one tail is 0.5 and P – value two tail is 1 the null hypothesis is accepted with
regard to income. Hence there is no significant difference between income and with prospects
to living standard that has improved after joining the SHG

4.3.20 what service do you receive from the SHG other than
financial help and providing employment during covid pandemic?

44

SHG helped in distribution of products.

They have provided medical support.

They have provided food kit.

Motivational classes and prevention classes were conducted to fight the
covid.

Community kitchens were established and provided free food to those who
were in need.

SHG guide their members, how they earn or how they can increase their
savings.

45
 CHAPTER 5

FINDINGS, SUGGESTION AND CONCLUSION

FINDINGS

1. 23% of respondents comes under 20-30 age group, 33% of respondents comes under 46-
46
60 and 37% of respondents comes under 46-60 age group but only 6% of respondents
comes under above 60 age group.
2. In this pie chart, 22% of the respondents pay INR 100, 45% of the respondents pay INR
500, 22% of the respondent pay INR 1000. 10% respondents pay 1001-2000.

3. 27% of the respondents are housewife and 25% of them are working but 13% are self-
employed and 34% are currently unemployed.
4. 100% of the respondents have voted that registered SHG are better than non-registered
SHG.
5. In different group, the loans are allotted in different interest rate to their members. 13%
of the respondents says that they get the loan at 2% interest rate, 35% of respondents at 4%
rate, 44% of respondents at 5% and only 7% respondents at 10% rate.
6. 34% of the respondent says that they mostly transfer the money to the account, 13% of
respondents says that the group take money from the bank and allot them. 30% of the
respondents say that they get the money in installment bases. Only 22% of them says that
they will give money in hand (when the amount is low).
7. 68% of the respondents pay back the loan but 32% of them don’t pay back.

8. The main reason for the diversion on loan payment is they use the money for purchase
of vehicle, like you can see 37% of the respondents had spent the loan money on purchase
of personal vehicle, 35% on purchase repair of the asset, 27% in overcoming the marriage
expenses and only 3% are other reasons (like lending that amount to other person,
spending that money in unproductive way etc.).
9. 61% of the respondents says SHG may or may not generate income, 29% of the
respondents agree that SHG helped them in generating the income. only 9% of the
respondents disagree with these statements.

10. 32% of the respondent have invested the money in production of household goods.
38% each of the respondents invested the money in producing the mask and 26%
converting the waste land into cultivation land. And remaining 3% respondent have other
reasons and everyone has invested in their new startups

47
11. 49% of respondents have same living standard before joining SHG. 36% of
respondents agreed that their living standard has increased and only 14% of them
disagreed.
12. 33% of the respondents agree that the new SHG schemes are better than old one and
48% have neutral response. Only 18% disagree the statement.
13. 36% of the respondents agree that they have become independent after joining the SHG
and 45% of respondents don’t have any affect. 18% of respondents disagree.
14. 60% of the respondents have disagreed that the interest rate has not increased during
covid pandemic and remaining 40% are sure about the hike in interest rates.
15. 26% of the respondent have a positive impact during covid pandemic because they
have done something productive like they start to produce the household snacks and
pickles or started cultivation and 51% people have neutral impact and remaining 22% have
negative impact.
16. 25% of the respondents says that the government have provided financial help and 52%
food kit and 23% of them have stated that they were provide job with daily wages.
17. All the respondents agree that SHG service has not decreased during covid pandemic.

48
SUGGESTION

Interest Rate: -

The respondents and in many articles one of the main discussions will be about the interest
rate. This is stated that poor people can’t repay back the loan amount with interest because of
their financial condition. So, government should provide fund free of interest.
Training Program: -

The SHG should conduct training program so that the members will come to know the
scheme available to them so that they utilize the fund in best productive way and more than
that should teach them how this SHG work and what the main motive of this group is.
Loan Period: -

The SHG should also lend interest free loan to the poor members whose financial
condition are worst and should also increase the repayment period. This suggestion is
added because of the personal observation.
Continuous check on repayment process: -
Many SHG face problem in tracking the loan lend by them to their members because of the
poor maintenance of the record with inefficiency of the main coordinators. The coordinators
should keep regular check on the repayment of the loan. For that they can use excel to keep a
track of the loan or use different software which will warn the coordinators and the member
who took the loan on the due date.
Motivation: -
The SHG coordinators should motivates the members by explaining them the scheme and
motivating them to start their own business and create opportunity for others. They should
explain everything about group so that they can explore it and become independent and
upgrade their living standard.
Regular Meeting: -

The SGH members should conduct meeting regularly otherwise no one will find it
interesting and everyone will one come just to the pay the monthly subscription and no one
will know each other.

49
CONCLUSION

Today, Indian Microfinance is a vibrant space with a multitude of Players that sell different
goods and services at low levels Revenue customers with various methods. Many NBFCs,
cooperatives are approaching the rural area with their services. Microfinance is the future
of the India who can help in upliftment of the poor people. Microfinance is more famous in
the southern India. Microfinance industry have made gains coverage of rural poor people
population with financial services but mainstreaming of impact assessment and
incorporation of local factors in service delivery to maximize its impact on achievement of
goals of poverty alleviation considered. From the study we can many respondents have
suggested to decrease the interest rate with increasing the payment period because many
poor can’t repay the money. The government should bring a system check on the greedy
microfinances so the poor will get low-cost loan. The government should also bring new
scheme which help the poor and needy people for their better living standard. But during
covid pandemic, SHG have done many services to stabilize the economy from the crises.
They have taken ‘n’ number of measures not only in stabilizing the economy financially
but mentally too. The people should be motivated by explaining whole benefit they can
acquire form the SHG and other microfinance groups, institutions. This way many small
startups can be start in the rural area which will help in development of the backward area
of the country.

50
BIBLIOGRAPHY

Journals

Anju Malhotra, S. R. (2005). Measuring Gender and Women’s Empowerment.

Measuring Empowerment: Cross Disciplinary Perspectives.

Chaudhry, I. ,. (2009). The determinants of women empowerment in Southern

Punjab (Pakistan): An empirical analysis. European Journal of Social Sciences,
216-229.
Lisa, k. (2002). Empowering Women Through Microfinance.

Sara Noreen, R. E. (2011). Microfinance and women empowerment: A case study

of District Bahawalpur (Pakistan). African Journal of Business Management (AFR
J BUS MANAGE).
Syed M.Hashemi, S. R. (1996). Rural credit programs and women's empowerment
in Bangladesh. World Development, 635-653.

Mohammad Arifujjaman Khan, M. A. (2007). Impact of Microfinance on Living

Standards,Empowerment and Poverty Alleviation of Poor People:A Case Study on
Microfinance in the Chittagong District of Banladesh

Rahaman MH, Khan N (2007). Women Empowerment through participation in

Aquaculture: experience of a large scale Technology Demonstration Project in
Bangladesh. J. Soc. Sci.,3(4):64-171

Hulme D. and Mosley, P. (1996) Finance Against Poverty,Vol.1,

London:Routledge

Banerjee A., Duflo,E.,Glennerster R.,and Kinnan,C.(2010)”The miracle of

microfinance? Evidence from a randomized evaluation” in BREAD Working
Paper, No. 278.

Cheston,S. and Kuhn,L. (2002), “Empowering Women through Microfinance” in

Draft Opportunity International, Draft Publication Sponsored By UNIFEM

Kabeer,N.(2001)“Conflicts over credit: Re-evaluating the empowerment potential

of loans to women in rural Bangladesh” in World Development, Vol.29,No.1,
51
2001, pp.63M 84.

Kabeer,N.(1999)“Resources, Agency, Achievements: Reflections on the

Measurement of Women’s Empowerment” in Development and
Change,Vol.30,No.3,1999,pp.435-464

52
 WEBSITE

https://www.janabank.com/about-us/who-we-are/
milestone/ https://www.belstar.in/about.php
https://www.ujjivansfb.in/about-us
https://satincreditcare.com/at-a-glance-microfinance-
company/ https://www.bssmfi.com/organizational-
background.html
https://fusionmicrofinance.com/company_profile.php
https://www.zaubacorp.com/company/FUTURE-FINANCIAL-
SERVICESS- PRIVATELIMITED/U65910KA1996PTC077857
https://asirvadmicrofinance.co.in/company-profile/ https://maduramicrofinance.com/about-us/

53
 ANNEXURE

QUESTIONNAIRE
Dear respondents,

I am Mr. Anagha Suresh, studying in 3RD semester MBA in Acharya Bangalore B-School.
As a part of Bangalore University curriculum, I am conducting a survey on the topic
entitled “A STUDY ON “ROLE OF MICRO FINANCE IN POVERTY ALLEVIATION
WITH REFERENCE TO WOMEN” AT BALUSSERY”. In this regard kindly provide
your response to the following questions.

Name:

1. Age (in Years)

a. 20-30

b. 31-45

c. 46-60

d. Above 60

2. Occupation

a. Self Employed

b. Housewife

c. Working

d. Currently not employed

3. How much amount you give for Subscription of

microfinance e membership?

a. 100

b. 500

54
 c. 1000

d. 1000-2000

4. Do you believe that registered SHG are far better than Non-registered SHG?

a. Yes

b. No

5. Rate of interest on loan allotted to individual by SHG?

a. 2%

b. 4%

c. 5%

d. 10%

6. What is the mode of dispersal of microfinance amount?

a. Give whole cash in your hand

b. Transfer the money to your account

c. Give money in installment bases

d. The group take loan from bank and allot you

7. Do you pay back the loan amount taken from the group?

a. Yes

b. No

8. If no, then what have you done with that money?

a. For marriage

b. For repair of asset

c. For purchase of personal vehicle

d. Other reasons (specify_ )

9. Do you agree SHG helped you in generating income?

a. Agree
55
 b. Neutral

c. Disagree

10. Where did you deploy the sanctioned funds?

a. Producing household goods (like papad, pickle)

b. Making/Selling the mask

c. Converting the waste land into cultivation land

d. Other reasons (specify )

11. Do these types of groups really helped you in improving your living standards?

a. Agree

b. Neutral

c. Disagree

12. Do you believe the SHG scheme has improved from old scheme?

a. Agree

b. Neutral

c. Disagree

13. Do you feel more independent after joining SHG?

a. Agree

b. Neutral

c. Disagree

14. Do you feel that the interest rate has gone up during covid pandemic?

a. Agree

b. Disagree

c. May be

15. What is the impact of Covid 19 on your standard of living?

a. Positive
56
 b. Neutral

c. Negative

16. What help did you get from the government during covid pandemic? (Can opt
more than on option)

a. Financial help

b. Provide jobs with daily wages

c. Provide food kit

17. Had SHG decreased SHG’s service during covid pandemic?

a. Yes

b. No

18. If yes, what is the reason

19. What service do you receive from the SHG other than financial help and
providing employment during covid pandemic?

20. Any suggestion that you feel to be improved in SHG

57