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SHG-BANK-LINKAGE PROGRAM (MICROFINANCE)

IN POVERTY ALLEVIATION WITH SPECIAL


REFERANCE TO ALLAPUZHA DISTRICT
A project report submitted to
Amrita Vishwa Vidyapeetham in partial fulfillment of the award of the degree of

Bachelor of Commerce
Submitted by
ASHNA ANIL KUMAR

AM.AR.U3COM12018

KAVY SANTHOSH

AM.AR.U3COM12038

RESHMA.S

AM.AR.U3COM12074
Under the guidance of

DR. T G MANOHARAN

Department of Commerce and Management


Amrita school of arts and sciences
Amrita Vishwa Vidyapeetham
Amritapuri, Kollam
May 2015

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CERTIFICATE OF THE MENTOR

DR. T G MANOHARAN
Lecturer,
Amrita Vishwa Vidyapeetham,
Amritapuri campus,
Kollam,
This is to certify that the report entitled SHG-BANK LINKAGE PROGRAM
(MICROFINANCE) IN POVERTY ALLEVIATION WITH SPECIAL REFERANCE TO
ALLAPUZHA DISTRICT has been prepared by Ms. Ashna Anil Kumar, Kavya
Santhosh and Reshma S under my supervision and guidance, for the
fulfillment of Bachelor of Commerce. There field work is satisfactory.

Date:
Signature of the Mentor

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DECLARATION
We hereby declare that this project work entitled SHG-BAN KLINKAGE PROGRAM
(MICROFINANCE) IN POVERTY ALLEVIATION WITH SPECIAL REFERANCE TO
ALLAPUZHA DISTRICT submitted by us for the partial fulfillment of the requirement for the
award of Bachelor of Commerce (B Com), is a record of our own research work under the
guidance of Project Mentor (DR T G MANOHARAN, Department of Commerce And
Management). We certify that the project is our own work and has not been submitted earlier for
the award of any degree or diploma to any Institute or University.

PLACE: Amritapuri

NAME/ROLL NO:
ASHNA ANIL KUMAR (18)
KAVYA SANTHOSH (38)
RESHMA.S (74)

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ACKNOWLEDGEDGEMENT

First and foremost, We would like to thank "MATA AMRITANADAMAYIDEVI" our beloved
AMMA, who has been guiding light for successful completion of this project.
We express my heartfelt sense of gratitude to DR. PREMA, HOD Amrita Vishwa Vidyapeetham
University School of Arts and Science, Amritapuri allowing us to do this study with all support.
It is our privilege to work on the project " SHG-BANKLINKAGE PROGRAM
(MICROFINANCE) IN POVERTY ALLEVIATION WITH SPECIAL REFERANCE TO
ALLAPUZHA DISTRICT."
We also thank DR. T G MANOHARAN who has been a sources of inspiration through their
constant guidance, personal interest, encouragement and help. In spite of their busy schedule
they have always found time to guide us through the project. We are also grateful to reposing
confidence in my abilities and giving us the freedom to work on our project.
We also take this opportunity to thank all my family and friends who has been the source of
inspiration throughout the project
We are highly indebted and thankful to our respondents.
Last but not least, we also thank the OMNIPOTENT ALMIGHTY for giving us the strength and
ability in the smooth and steady conducted of this project.

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TABLE OF CONTENTS
SL.NO

chapter

Contents

Page no

Certificate of mentor

Declaration

Acknowledgment

List of tables

List of figures

6
7

Abstract
Introduction

11-17

1.1

Introduction to the Study

12

1.2

Review of Literature

14

10

1.3

Statement of the problem

15

11

1.4

Objectives of the Study

16

12

1.5

Research Methodology

16

13

1.6

Limitations of the study

17

14

1.7

Chapterisation

17

15

Profile of the study

19-36

16

2.1

Title of the study

20

18

2.2

Industry profile

24

19

Theoretical Perspective

36-37

20

Analysis and interpretation

38-70

21

Findings

71-74

22

Suggestions and recommendation

75-76

23

Conclusion

77-78

24

Bibliography

79

25

Appendix

80-84

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LIST OF TABLES

TABLE

TABLE TITLE

PAGE NO:

NO:
4.1
4.2
43
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18

Age of the respondent


Religion of the respondent
Caste category of the respondent
Education of the respondent
Occupation of the respondent
What is your monthly income?
What is your monthly expenditure?
Marital status?
Family particulars
Household size
Are you living in own house?
Type of house
How many acres of land you have?
What is your group size?
Since how long are the member of the group?
Who motivated you to join Self Help Group?
What are the reasons for joining SHG?
Who take decisions on day to day functioning of

39
40
41
42
43
44
45
46
47
48
48
49
50
51
52
53
54
55

4.19
4.20
4.21
4.22
4.23
4.24
4.25
4.26
4.27
4.28

your group?
Does banks provide loan for SHG?
Are your group an account holder in the bank?
Have you taken a loan?
Mostly for what purpose loan is taken?
Rate of interest is to be given to the loan?
Is Bank loan amount adequate to SHG?
How much loan you have taken from the bank?
Installment period to repay loan to the bank?
Status of repayment
Is there any delay in sanctioning of loan by

56
57
57
57
58
59
59
59
60
61

4.29

banks?
Did you face any difficulties at the time of 61

4.30
4.31
4.32
4.33

getting loan?
Does SHG provide personal loans?
How much amount did SHG provides?
Rate of interest
Installment period to repay loan?

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62
62
63
63

4.34
4.35
4.36

Status of repayment
64
For which purpose, you utilize the loan amount? 65
Is credit facilities are improved after joining 65

4.37
4.38

SHG?
If improved, what are the sources of credit?
66
What is the attitude of your family while you 66

4.39
4.40
4.41

are functioning with the group?


Is there any conflict among group members?
67
If yes steps taken to resolve it?
67
Are you satisfied with the functioning of your 67

4.42

Group?
GENERAL ENQUIRY

68-70

LIST OF FIGURES

TABLE NO:
Table 4.3
Table 4.4
Table 4.5
Table 4.6
Table 4.7
Table 4.8
Table 4.9
Table 4.16

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TABLE TITLE
CASTE CATEGORY
EDUCATION QULIFICATION
OCCUPATION
MONTHLY INCOME
MONTHLY EXPENDITURE
MARITAL STATUS
FAMILY PARTICULARS
WHO MOTIVATED YOU TO JOIN SHG

PAGE NO:
41
42
43
44
45
46
47
53

Table 4.17

REASON FOR JOIN SHG

54

Table 4.22

PURPOSE OF LOAN

57

LOAN AMOUNT FROM THE BANK

59

Table 4.25
Table 4.33

PURPOSE AND UTILIZATION OF LOAN AMOUNT

Table 4.39

SATISFACTORY
GROUP

LEVEL

ON

FUNCTIONING

64
OF

67

Executive Summary

A nations financial status reflects the living status of its citizen. The nation is
considered financially secured, once the people living in it attain a better
living environment. Upliftment in each citizens life style contributes to the
upliftment of the nation itself.
Several Micro Finance Institutions (MFIs) have been experimenting and trying
to develop financial products, to address the diverse needs of liquidity,

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security and financial returns for the poor, and have succeeded to an extent.
One method of access to micro finance by Alappuzha district, rural women in
particular, is the Self Help Group-Bank linkage programme, where banks
provide finance to the groups for undertaking economic activities. But before
the financial products are developed for the poor, it is useful to understand
the fund flow and expenditure patterns so that issues pertaining to savings
and credit can be addressed. The present study derived on a representative
sample, within Alappuzha District. The objective of this study is to
understand the financial flows of the rural poor and facilitate the process by
which

financial

institutions

can

design

community

driven

women

empowerment strategy and financial products that would help rural poor.
A considerable rise in the living standard of the people after joining SHG
takes the concept of such groups to a better level. The suffering or the poor
enjoys the freedom of equality in the society with the idea of SHG, which to a
better extend, helped in increasing the capability of the poor financially and
act as united. Every small step taken towards the upliftment of poor makes
the nation grow higher and as a result the nations financial stability reaches
greater heights.

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CHAPTER-1
INTRODUCTION

1.1 INTRODUCTION
Microfinance is a general term to describe financial services to low-income individuals or to
those who do not have access to typical banking services.

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Microfinance is also the idea that low-income individuals are capable of lifting themselves out of
poverty if given access to financial services. While some studies indicate that microfinance can
play a role in the battle against poverty, it is also recognized that is not always the appropriate
method, and that it should never be seen as the only tool for ending poverty
Self Help Groups (SHGs) are becoming one of the important means for the empowerment of
poor women in almost all the developing countries including India. Kerala is no exception as
regards the role played by women's collectives, known by different names for emancipation and
empowerment of poor women. The NGOs who are in the field of socio-economic development
of the marginalised sections in the society since last four to five decades, had initially organised
Credit Unions and Mahila Samajams for better participation of people in development initiatives
and also for thrift and credit facilities. Since the emergence of SHG system, as per the initiatives
of National Bank for Agriculture and Rural Development (NABARD), and directives from
Reserve Bank of India (RBI), from the beginning of 1990s, most of these Mahila Samajams and
Credit Unions have been converted into SHGs, linked them to financial institutions for better
credit facilities. In Kerala, since the middle of 1990s, the State Government also took initiatives
in organizing the urban poor women into Neighbourhood Groups (NHGs). These NHGs are
recognized as SHGs by NABARD, as far as SHG-Bank linkage and credit facilities are
concerned.
Kudumbasree is a Programme under the Poverty Eradication Mission (PEM) of Government of
Kerala, which came into existence since 1997. The PEM is a Government Organised NonGovernmental Organization (GONGO), directly supervised by the Local Administration
Department of the Government of Kerala. The concept of Kudumbasree programme is conceived
as a poverty eradication strategy and at the same time as a programme implemented both in
rural as well as in urban areas.
In the constitution and functioning of SHGs, there is a wide variation observed among the SHGs
of NGOs and between the SHGs of Kudumbasree and NGOs. Regarding membership,
attendance and other regulations, SHGs of Kudumbashree have fixed rules and regulations
whereas the SHGs of NGOs do not have any hard and fast rule in this regard. The designations of
office bearers differ between SHGs of NGOs. The number of Executive Committee Members

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also varied depending upon the total strength of the group. SHGs of Kudumbasree follow the
bye-laws of CDS in selecting its executive members and the office bearers are elected in a
democratic way of voting. In the selection of beneficiaries for providing loan, the SHGs follow
certain criteria. Interest rate to be charged and the number of installments for repayment and
dealing with defaulter of repayment in time were left to the SHG. The most common rate of
interest charged by the SHGs was Rs. 1 per Rs. 100 per month, i.e.0.01% interest.
Neighbours, friends, other members of SHGs, officials of Kudumbasree
and animators of NGOs were the agents who motivated the respondents to join in the SHGs. For
majority (75 %) of the respondents the motivating factor for joining the SHGs was economic
reason, which includes inculcating savings-habit and getting easy loan at a reduced rate of
interest. Interaction with other women in their area; cooperation among members, acquiring
knowledge, skills and a desire to work for the development of the community etc. are the social
motives influenced about 19% of the respondents.
There were dropouts reported from both the SHGs of NGOs and
Kudumbasree. Usually the dropout starts after 6 to 12 months. Comparatively dropout rate was
found less in Kudumbasree SHGs than from the SHGs of NGOs. Regarding the information
about thrift saving and loan repayment, there was no significant difference between members of
SHGs of NGOs and Kudumbasree. However, different NGOs follow different strategy for thrift
savings. Some fix an amount, which is agreed upon by majority of the groups under them, while
others leave the matter to the SHGs to fix up the amount. And, the Kudumbasree seem to have
advised its SHGs to fix up some norms for thrift savings. In the case of SHG-bank linkage, there
was significant difference between Kudumbasree and NGOs. All the SHGs selected from NIDS
and Mithranikethan were not linked to recognized banks/financial institutions since these two
NGOs had their own systems where the thrift savings were deposited. All the SHGs of
Kudumbasree were linked to Banks within two years.
Regarding conflict management, only 6 % of the respondents agreed about
subgroups in their SHG system and it was found in SHGs of NGOs as well as in Kudumbasree
groups. Most of the problems emerged due to financial dealing and autonomy of the leaders.
(micro credit guideline 2013-2014)
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1.2 LITERATURE REVIEW


Madhusudan Ghosh, 2012,This paper reviews the progress of SHG-Bank linkage programme at
the national and regional levels, and examines its impact on the socio-economic conditions of
SHG member households. The programme has grown at a tremendous pace during last two
decades and emerged as the most prominent means of delivering micro-finance services in India.
Though the regional spread of the programme is highly skewed with highest concentration in the
southern region, it has started picking up pace in other regions. The average annual net income,
assets and savings of SHG member households increased significantly in the post-SHG situation.
The average amount of loans and the regularity in repayment of loans increased, and the
dependence on moneylenders decreased remarkably. The percentage of loans used for productive
purposes and employment per household increased, the incidence of poverty among SHG
members declined, and the social empowerment of women improved significantly. The study
offers important policy suggestions

M.Venkata Ramanaiah,, C. Mangala GowriA, In recent times the term Microfinance (MF)
became a buzz word in the every corner of the world as well as in the formulation of welfare
programs by government. After hearing success stories in microfinance across the developing
countries, particularly Bangladesh, third world nations started to give more importance to MFs.
Since, banks have failed to reach the poorest of the poor of the countries population;
microfinance emerged as a potential tool to fill the gap betwee1n financial institutions and needy
people. Ethiopia, as a least developed country (LDC), needs huge financial recourses for rapid
and sustainable development and reduce gap between haves and have-nots. Though we are in
21st century where science and technology plays a vital role in the pace of development, many
countries across the Africa suffered from hunger, ill health, mass poverty and illiteracy. To curb
all these awful conditions, there is a need of massive financial recourses. Private Banks and
Government sector banks have many limitations in this concern. Mainly, these banks have high
profit motives and they used to put many restrictions to sanctions loans to the poor. In this
juncture, Microfinance is said to be an effective instrument discovered in 21st century to mitigate
rural poverty in the world. Microfinance helps the poor to come out from many wicked
problems. The beauty of the MF is in safeguarding a variety of interests of its members. In this
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paper an earnest attempt is made to review of the need of Micro Financial Institutions (MFIs),
the role of MFIs in alleviation of poverty in the country and how woman can get assistance from
these institutions with a special reference to ACSI.

Dr. Padmaja Manoharan, Dr. Rameshwari Ramachandra, Dr.R. Nirmala Devi, Predatory lending
consists of those credit practices that taking advantage of the borrowers lack of financial literacy
exploits customers through high cost credit. People may be victim of predatory lending because
lacking alternative financial options; this is when being rationed by the formal financial market.
However, the underlying premise is a weak credit law. Despite some advances in consumer
protection law, predatory lending has not been regulated in Mexico being not even defined in the
law.

1.3 PROBLEM OF STUDY


The study is conducted to understand the working of SHG units linked with bank in Alappuzha
district. The major objective of this study is to assess the activities of SHG in Alappuzha
District.Questionaires are distributed among members and interviews are conducted for
collecting the data.
Poverty eradication is the main purpose of Self help groups.The
considerable improvement in the status of women is done through the SHG like kudumbashree
and Neighbourhood groups(NHG) because the main aim of SHGis to empower women.

1.4 OBJECTIVES OF RESEARCH :


1. To understand the relationship between micro- credit and poverty alleviation
2. To analyze the growth of microfinance sector and Self Help Groups (SHG).
3. To understand the impact of micro credit

1.5 Research methodology:


Research methodology is a way to systematically solve the research problems scientifically. It
clearly defines all methods adopted in the study for solving the research problem. It also deals
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with the objectives of research study, the method of defining the problem, the type of data
collected and the method used for collecting and analyzing data.

a)
o
o
b)
o

a)
b)
c)

Research design The research design adopted in this study is descriptive research, because the
research is on the basis of survey for analyzing the problem.
Research approach
The research approach adopted in this study is survey approach.
Research instrument
The main instrument used for this study is a well structured questionnaire.
Data source
Both primary and secondary data are collected for conducting the study.
Primary data
Using questionnaires
Interaction with the SHG members
Secondary data
Internet
Sampling
Sample unit
The sample unit is the members of the SHG
Sampling area
Sampling area is restricted to ALLAPUZHA district.
Sample size
The sample consists of 100 SHG members in ALLAPUZHA district.

1.5 LIMITATIONS OF THE STUDY

The data given by some of the respondents relating to the financial aspects may affect the result,

as the data were based on their estimates and guess work.


Lack of awareness about SHG by the SHG members caused incomplete answers.
Some members hesitated to open their personal matters in connection with SHG work.
Time limit was a major factor of concern that made the project to confine within limited
time

1.6 CHAPTERISATION
The project report is partitioned into seven chapters .they
Chapter 1: Introduction
Introduction to the study, Literature Review, Statement of the problem , Objectives of the Study,
Scope of the study , Research Methodology , Limitations of the study.
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Chapter 2: Profile of the study


Industry Profile: SHG
Chapter 3: Theoretical perspectives
This chapter consists of the theoretical frame work. It includes the detailed description about the
topic
Chapter: 4 Analysis and Interpretation
Graphs showing the rate of respondents perception and Expectation towards SHG.
Chapter: 5 Findings
Findings are drawn from the graphs.
Chapter: 6 Suggestions
It includes the suggestions to improve the overall SHG management
Chapter: 7 Conclusions

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CHAPTER-2
PROFILE OF THE STUDY

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2.1 TITLE OF THE STUDY


Microfinance is a source of financial services for entrepreneurs and small businesses lacking
access to banking and related services. The two main mechanisms for the delivery of financial
services to such clients are:
(1) relationship-based banking for individual entrepreneurs and small businesses; and
(2) group-based models, where several entrepreneurs come together to apply for loans and other
services as a group.
Self Help Groups (SHGs) are becoming one of the best
means for the empowerment of poor women in almost all the developing countries including
India. Kerala is no exception as regards the role played by women's collectives, known by
different names for emancipation and empowerment of poor women. The NGOs who are in the
field of socio-economic development of the marginalised sections in the society since last four to
five decades, had initially organised Credit Unions and Mahila Samajams for better participation
of people in development initiatives and also for thrift and credit facilities. Since the emergence
of SHG system, as per the initiatives of National Bank for Agriculture and Rural Development
(NABARD), and directives from Reserve Bank of India (RBI), from the beginning of 1990s,
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most of these Mahila Samajams and Credit Unions have been converted into SHGs, linked them
to financial institutions for better credit facilities.
Self Help Groups were organized under the initiatives of the National Bank for Agriculture and
Rural Development [NABARD] and the directions of the Reserve Bank of India. Promoted by
the governments as well as non-governmental organizations, it is group of rural poor, particularly
women, who have volunteered to organize themselves into a group for eradication of poverty of
the members through collective internal savings and access to external credit. Access to external
credit is achieved through SHG-bank linkage, based on group solidarity instead of formal
collateral
Under the SHG-bank linkage programme, each self-help group is linked with a bank a rural,
co-operative or commercial bank where the group account is maintained. Over time the bank
begins to lend to the group as a unit, without collateral, relying on self-monitoring and peerpressure within the group for repayment of these loans.
These linkages were designed not just as a strategy for poverty alleviation through financial
empowerment, as was earlier pointed out. It was designed to be a vehicle by which rural women
could achieve social, personal and political empowerment as well. Improvements in confidence
levels, independence, mobility, decision-making capability and increased acceptance within the
family were considered to be pointers towards personal empowerment. It was also anticipated
that the rural women could accomplish social empowerment through micro finance, epitomized
by improvements in organizational, interactive and public speaking skills, group cohesiveness,
increased awareness on rights, social problems, increased acceptance in the society and
participation in social activities. Rural women can successfully empower themselves against
social evils like alcoholism, domestic violence, abuse and exploitation, gender bias and social
exclusion.
The poverty eradication mission of state of Kerala is a community based self help initiative
involving poor women. It has envisaged as an approach to poverty alleviation focusing primarily
on micro-finance and micro enterprise development, and integrally linked to local self
government institution .National Bank of agricultural and Rural Development (NABARD)

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initiated womens Self Help Groups (SHGs) in India with support of Non Governmental
Organization (NGOs).
(http://en.wikipedia.org/)
2.1 HISTORY OF MICROFINANCE
The history of microfinancing can be traced back as long to the middle of the
1800s when the theorist Lysander Spooner was writing over the benefits
from small credits to entrepreneurs and farmers as a way getting the people
out of poverty. But it was at the end of World War II with the Marshall plan
the concept had an big impact.
The today use of the expression microfinancing has it roots in the 1970s
when organizations, such as Grameen Bank of Bangladesh with the
microfinance pioneer Mohammad Yunus, where starting and shaping the
modern industry of microfinancing. Another pioneer in this sector is Akhtar
Hameed Khan. At that time a new wave of microfinance initiatives introduced
many new innovations into the sector. Many pioneering enterprises began
experimenting with loaning to the underserved people. The main reason why
microfinance is dated to the 1970s is that the programs could show that
people can be relied on to repay their loans and that its possible to provide
financial services to poor people through marketbased enterprises without
subsidy. Shorebank was the first microfinance and community development
bank founded 1974 in Chicago

An economical historian at Yale named Timothy Guinnane has been doing


some research on Friedrich Wilhelm Raiffeisens village bank movement in
Germany which started in 1864 an by the year 1901 the bank had reached
2million rural farmers. Timothy Guinnane means that already then it was
proved that microcredit could pass the two tests concerning peoples

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paybackmoral and the possibility to provide the financial service to poor


people.
Another organization, The caisse populaire movement grounded by Alphone
and Dorimne Desjardins in Quebec , was also concerned about the poverty,
and passed those two tests. Between 1900 to 1906 when they founded the
first caisse, they passed a law governing them in the Quebec assembly , they
risked their private assets and must have been very sure about the idea
about microcredit.
Today the World Bank estimates that more than 16 million people are served
by some 7000 microfinance institutions all over the world. CGAP experts
means that about 500 million families benefits from these small loans
making new business possible. In a gathering at a Microcredit Summit in
Washington DC the goal was reaching 100 million of the worlds poorest
people by credits from the world leaders and major financial institutions.
The year 2005 was proclaimed as the International year of Microcredit by The
Economic and Social Council of the United Nations in a call for the financial
and building sector to fuel the strong entrepreneurial spirit of the poor
people around the world.
The International year of Microcredit consists of five goals:
Assess and promote the contribution of microfinance to the MFIs
Make microfinance more visible for public awareness und understanding as
a very important part of the development situation
The promotion should be inclusive the financial sector
Make a supporting system for sustainable access to financial services

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Support strategic partnerships by encouraging new partnerships and


innovation to build and expand the outreach and success of microfinance for
all
The economics professor Mohammad Yunus and the founder of Grameen
Bank were awarded the Nobel Prize 2006 for his efforts. The press release
from nobelprize.org states:
The Norwegian Nobel Committee has decided to award the Nobel Peace
Prize for 2006, divided into two equal parts, to Muhammad Yunus and
Grameen Bank for their efforts to create economic and social development
from below. Lasting peace can not be achieved unless large population
groups find ways in which to break out of poverty. Micro-credit is one such
means. Development from below also serves to advance democracy and
human rights. Muhammad Yunus has shown himself to be a leader who has
managed to translate visions into practical action for the benefit of millions
of people, not only in Bangladesh , but also in many other countries. Loans to
poor people without any financial security had appeared to be an impossible
idea. From modest beginnings three decades ago, Yunus has, first and
foremost through Grameen Bank, developed micro-credit into an ever more
important instrument in the struggle against poverty. Grameen Bank has
been a source of ideas and models for the many institutions in the field of
micro-credit

that

have

sprung

up

around

the

world.

Every single individual on earth has both the potential and the right to live a
decent life. Across cultures and civilizations, Yunus and Grameen Bank have
shown that even the poorest of the poor can work to bring about their own
development.
Micro-credit has proved to be an important liberating force in societies where
women in particular have to struggle against repressive social and economic
conditions. Economic growth and political democracy can not achieve their
full potential unless the female half of humanity participates on an equal
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footing

with

the

male.

Yunuss long-term vision is to eliminate poverty in the world. That vision can
not be realised by means of micro-credit alone. But Muhammad Yunus and
Grameen Bank have shown that, in the continuing efforts to achieve it,
micro-credit must play a major part.
(http://en.wikipedia.org/)

2.2 ADVANTAGE OF MICROFINANCE


Microfinancing produces many benefits for poverty stricken, or low- income households. One of
the benefits is that it is very accessible. Banks today simply wont extend loans to those with
little to no assets, and generally dont engage in small size loans typically associated with
microfinancing.

Through

microfinancing

small

loans

are

produced

and

accessible.

Microfinancing is based on the philosophy that even small amounts of credit can help end the
cycle of poverty. Another benefit produced from the microfinancing initiative is that it presents
opportunities, such as extending education and jobs. Families receiving microfinancing are less
likely to pull their children out of school for economic reasons. As well, in relation to
employment, people are more likely to open small businesses that will aid the creation of new
jobs. Overall, the benefits outline that the microfinancing initiative is set out to improve the
standard of living amongst impoverished communities

2.3 INDUSTRY PROFILE


MICRO FIANANCE SCHEMES
Even though there are many agencies operating in the field of credit the
poorest among poor who need loans of very small amount go to private moneylenders, since
their requirement is quick delivery of loan at their door steps.The intentions of the money lenders
have been to exploit the poor instead of helping them and this rather worsened plight of the poor.
The poor have demonstrated their potential for Self-help to secure greater economic and
financial strength and many self-help groups have come into existence spontaneously or with
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active involvement of Non Governmental Organization (NGOs).NGOs, beyond doubt could do


much to improve the income of the poor and their families.
Micro credit financing in simple terms can be defined as financing Micro credit needs of the
poor. The principles under lining Micro Credit finance are:
It should be easily available without any complications of lengthy and time consuming
identification and documentation.
It should be available at the required time and place so that valuable time is not lost for taking
care of small needs of user beneficiaries and user beneficiaries not thrown into the money
lenders clutches.
It should be available at an affordable rate of interest to the Self-Help Groups and at a market
driven rate to the user beneficiary so that self-help group can build up a reserve and user
beneficiary develops repayment habit and discipline.
The Micro Credit Financing will always have to work through the agency of a self-help
group/Non-Governmental organization which acts as the co-originator and the integrator among
the different members of the self-help group and takes collective responsibility for satisfactory
credit and repayment management.
SELF-HELP GROUPS
A self-help group can be defined as a small(not more than 20)members economically
homogeneous, socially cohesive group of rural and urban poor who have voluntarily come
together for their individual and collective economic upliftment as the main focus.
SHG is a homogeneous group of micro entrepreneurs with affinity among themselves,
voluntarily formed to save whatever amount they can conveniently save out of their earnings and
mutually agree to contribute to a common fund of the group from which small loans are given to
the members for meeting their.
SHG will empower the economic background of socially and economically
background people.There will be a social transformation out of this microfinance unit. The
peoples income level can be an uplifted so as to enhances there standard of living. It creates a
unique social culture of corporation and also inculcate bank habits among the people.
Section of Self-help groups for extending Micro credit Financing:
24 | P a g e

In order to ensure that Micro Credit Financing serves the objectives for which it is
implemented, rigorous criteria of selecting self-help groups for giving them credit for onward
lending to individual members, are absolutely essential.
The following guidelines are hereby issued for selecting the self-help groups for the purpose of
giving them credit for Micro Credit Financing activity.
a. The group should have been formed at least one year back i.e; it should completed one year from
the date of its formation.
b. The group should have been conducting regular meetings and maintain the records of its
proceedings. It is difficult to enforce a strict time frame for defining regularity but in general, a
meeting once every four months or earlier will be considered as meeting regularly conducted.
c. The group members should have been doing regular savings. The regularity of savings is to be
judged with respect to time-frame and not to the amount of savings. Every member individually
and group collectively, should have been saving the amount every month. On an average, each
member should have been saving minimum Rs.30/-per month with an overall variation of 10%.
d. The group must have made efforts for collective decision making in its meeting and it can be
judged by the record of proceeding maintained by the group.
e. The group should have a maintained its accounts in a simple and transparent manner. It should be
ensured that the groups accounts are maintained by one of its members alone and not by an
outsider/Accountant etc.
f. If the group has already taken up lending activity, the repayment should be minimum 80% as per
the repayment schedule.
g. The group should have been preferably registered under any of the existing laws or rules for the
purpose or it should have articles of association defining its activities.
h. The group leadership have been elected by the members either through a process of democratic
election or through a process of consensus i.e., it should not be forced leadership.
i. The members of the group including its leaders should not have active political affiliation.
j. The group normally should not exceed twenty members and should not be less than ten
members.
k. The group must have an operating account in any of the Bank branches for transacting all their
financial transactions, which could be either savings or borrowings or payments.
l. The group should not have used its savings for commercial borrowings to any non-member
since its formation.
m. The group should be carrying out only socio economic activities for the welfare of its own
members or for community as a whole and in no way should be taking part in any other activity.
25 | P a g e

n. The existing groups which fulfill the above criteria shall also be eligible for Micro Credit
assistance.
o. The groups having members below the poverty line should be given preference for extending
assistance under Micro Credit and only after the groups below the poverty line (BPL) are
exhausted, the groups below double the poverty line will be eligible for assistance.

2.3.1 MICRO CREDIT UNIONS


The concept of self-help and mutual help existed in our country prior to any organised or formal
form of self-help and mutual help. The history of organized self-help and mutual help may be
traced back to the origin of the concept of credit unions. The concept of credit unions was a
development in the field of thrift and credit. A credit union is a group of people who join together
to save money and to make available loans to each other at a low rate of interest. A credit union
is a financial co-operative organized by a group of people with a shared field of membership.
The origin of formal credit unions is from Germany towards the middle of the 19 th century.
Even before the formal credit union came to India, by the first half of twentieth century, there
existed different kinds of such informal systems centered around religious institutions, through
which the poor were encouraged the habit of savings to meet some urgent needs of the family. As
far as Kerala is concerned, there existed "Kuri", "Payattu" and "Chitti" since long ago, in
different forms at different regions, for petty family consumption utility, as well as for major
investments in income-generation activities. The concept of formal credit union was very well
accepted by the Non-Governmental Organizations in Kerala, engaged in social welfare, social
services, and social development fields. The religious institution-based informal systems were
strengthened and merged into the formal system, like credit unions.
(Micro credit guideline 2013-2014)

2.3.2 ROLE OF NON-GOVERNMENTALORGANIZATION


The non-Governmental Organization (NGOs) acts as a linkage between the Microfinance and the
poor people by virtue of their spread in the operational area and rapport with the people. The
NGOs after provided with credit by the Microfinance can finance the poor people through selfhelp groups. The experience in Micro Credit all over the world has established that nongovernmental organizations act as useful intermediary between funding agencies and poor
26 | P a g e

people. In view of the above position, the non-governmental organizations are also channelized
to implement the Micro Credit Financing for backward classes/minorities in the state in the sense
that self-help groups will provide them funds for extending Micro Credit to poor people.
(Micro credit guideline 2013-2014)

2.3.3 ACTIVITIES TO BE UNDERTAKEN BY THE NGOs:


a) The NGOs may implement the Micro Credit Scheme by promoting Self Help Groups (SHG).It
would be preferable to have non-formal groups by the borrowers to simplify the procedures.
b) Submission of proposal for extending credit facility giving details or area of operation, number
of self-help groups and beneficiaries proposed to be covered, amount of credit required, the field
machinery available for implementation etc.
c) The Articles of Association of the SHG should specifically indicate whether they belong to
Backward Classes/Minorities and living below double the poverty line.
d) Identification of self-help groups/individual beneficiaries whatever is applicable for extending
Micro credit Financing (after approval of proposal as submitted at (a) above and fixation of
credit limit as mentioned in next Para).
e) Giving orientation training to the above identified self-help groups/individual beneficiaries.
f) Completing documentation prior to extending credit to credit to self-help groups/individual
beneficiaries and these documents will be entered into between SHG, and other NGO.
g) Extension of credit is subject to the requirements as already mentioned under criteria-Selection
of self-help groups for extending Micro Credit Financing from (i) to (xvi) and the NGO shall
ensure compliance of these (where programme is implemented through self help groups).
h) Submission of monthly information in prescribed proforma.
NGOs should submit the application in the prescribed format and with the following
documents.
i.
ii.
iii.
iv.
v.
vi.

Annual Report for last three years.


Certified copy of valid registration certificate/renewal certificate.
Bank account number and account details.
Details of professional people looking after the field operations and financial operations.
List of office bearers with full addresses.
Undertaking that the NGO is not having any political affiliation; etc, along with other
documents.

27 | P a g e

WOMEN IN KERALA:
Kerala is a state with several achievements in the social development of women and in the
balance of gender status has stabilized in many fronts.

Kerala has a high female literary rate of 86.2%, a low Infant Mortality Rate(IMR) of 13(against
the national average of 80) a favorable sex ratio of 1032 female/1000male,low Maternal
mortality Rate (MMR) 0.8/1000 and a high life expectancy of 74 female/70male.However the
absence of women in the public domain remains as a paradox of the Kerala model of

development.
The economic marginalization of women in the development process has drown considerable
attention during recent years while the female work participation rate in India increased from
19.7% to 22.7% between 1981 and 1991, in Kerala the ratio declined from 16.6% to
15.9%.During the same period the incidence of unemployment among females in the state is
higher than that among males by 5 times in rural areas and 3 times in urban areas.

Unemployment in Kerala is severe and is estimated to be 3 times larger than India.


The gender-oriented division of labour has resulted in the concentration of women in low paying
u organized sector such as agricultural labour, cottage and traditional industries and selected
service sector. Despite the powerful trade union movements, equal wages for equal wages for
equal works still remains a mirage and gender discrimination at the work place is widely

prevalent.
The marginalization of women in the economic process and lack of control over resources have

been major impediments in improving the status of women.


The violence against women and incidence of sexual harassment continue to increase.
Despite the general progressive political environment in the state, active involvement of women
in various leadership levels is low.
(Micro credit guideline 2013-2014)

2.3.4 WOMEN SELF-HELP EMPOWERMENT THROUGH GROUPS


In the study empowerment of poor women is viewed from three different angles, namely social,
economic and political. Social empowerment is further viewed from individual, group and
community levels. Empowerment at individual level is assessed by the increase in knowledge,
skills and attitude effecting in better selfesteem and self-confidence. Decision-making was one of
the most important aspects looked into while studying the SHGs and empowerment of women
28 | P a g e

through SHGs. The decision making process was looked into from two angles, namely within the
family and in the group. This study looked into the change that has happened in the decision
making process within the family after the respondents became the member of SHGs. There was
a visible change that has occurred in the level of participation of women in the decision making
process within the family. As far as health care and decision on menu the change was found more
among members of NGOs, while regarding the education of children respondents from
Kudumbasree experienced greater change. Together with participation in decisionmaking another
important aspect was the freedom of women as far as mobility was concerned. Remarkable
change has happened regarding mobility of women - including women going out for attending
meeting, classes, seminars, training programme, and various other functions of the SHG investment and credit utilization were concerned.
Development of a nation cannot be separated form or viewed in
isolation from the development of women who constitute half of the world population and who
can certainly play a critical role in influencing the course of human history as well as shaping the
destiny of mankind. Unfortunately in every society gender continues to be a power full barrier in
asserting the rights, capabilities and opportunities of women throughout life. Many of the legal
provisions for equality are confined to paper. Our country is noted for its cultural heritage,
respect for traditional values and honour for women, but is still largely male dominated where
women are miserably looked down up on.
No doubt women do have their inherent weaknesses due to the dual
responsibility both at home and their work place. But the lots of creativity in her work which is
an innate trait of women and the inborn talents and potentials with in her are unorganized and
unutilized in a patriarchal society. Their lower status in society makes them easier victims of
poverty as they do not have due control over resources neither as owner nor as user. Besides the
upbringing of women in shadow in fear and violence hinder their natural growth and convert
them into passive victims in a male dominated society.
Any attempt to improve the status of women should start with
empowerment. Empowerment implies the creation of an enabling environment were individuals
can fully use their lives. The purpose of empowerment is to free someone from rigorous control
to give them freedom to take their responsibility for their own ideas and action to realize hidden
resources which would otherwise remain inaccessible.
29 | P a g e

The history of India shows various up and downs in the status of


women in post independent India, the education and employment of women have played a
significant role in changing the traditional attitude towards within the family and society, the
government, through its industrial policy economic development. Several schemes for the
empowerment of women in rural areas have been implemented through government agencies and
financial institution.
(Micro credit guideline 2003-2004)

2.4 BANK LINKAGE PROGRAMME


Banks are advised through RBI guidelines to lend up to Rs-5lakhs to SHGs without any
collateral Securities.In addition to the loans from their own savings, NHGs are facilitated to avail
loan from bank through bank linkage programme.NABARD has developed following is point
index for rating NHGs on the basis of which they will be allowed to link with various banks

under the linkage banking scheme.


Structure of SHG
Period of operation
Number of meeting held
Attendance in meeting
Recording of minutes
Participation in discussion
Promotion of thrift
Thrift accounting
Decision making
Loan sanctioning procedure
Rate of interest barred
Velocity of lending
Percentage of repayment
Maintenance of records and registers
Byelaw
On the basis of some objectives and identifiable parameters, efficiency and effectiveness of
NHGs can be verified. Group can receive finance in the ratio ranking from1:1 to 1:9 through
bank linkage programme.The fund can be utilized by the groups for internal leading and setting
up of micro enters prices.

30 | P a g e

Through the linkage banking Rs-55406.71 lakhs is given to 92978


NHGs in the state as on March 2008.It is interesting to note that out of 1853309 NHGs only
92978 have availed bank linked credit.Interestingly 56 percentge of NHG do not take bank
linked credit in Kerala the bank linked forms only 21% of the thrift credit.This shows that a
significant share of credit needs of poor women are met from their own pooled savings.
A volunteer who is selected from each CDS gets trained to
monitor linkage banking activities.This volunteer maintains the details of application forwarded
to various banks in computers and liaison with various banks operating in the jurisdiction.The
advantage of this system is proper monitoring of all the linkage banking activities especially
timely repayment.
(Micro credit guideline 2003-2004)

2.41 PROCEDURE OF SHG-BANK LINKAGE PROGRAMME


Under the SHG-Bank Linkage Programme, the SHGs/NHGs are linked with the banks and the
members can avail financial assistance at a low rate of interest with out any collateral security;
which helps the poor to get funds for various purposes including the setting up of Micro
Enterprises or IGAs. The linking bank verifies the efficiency and effectiveness of the NHGs on
the basis of verifiable and easily identifiable parameters. NABARD has developed a 15 point
index for rating NHGs. The group should have been in existence for at least 6 months and scored
120/150 marks 103 based on its evaluation criteria. On the basis of which they will be allowed to
link with various banks under the Linkage Banking Scheme. Banks may lend directly to SHGs or
through bulk lending to NGOs for lending to groups. If lending is directly from banks to the
groups, the quantum of credit given to the groups should be in proportion to the savings
mobilized by the groups. Savings credit ratio may be 1: 2 initially which can be raised to 1: 4
depending on the confidence gained by the bank. The assistance so received can be utilized by
the groups for internal lending and taking up of Micro Enterprises or Income Generating
Activities.
(Micro credit guideline 2003-2004)

2.4.2 ADVANTAGES OF BANK LINKAGE PROGRAMME


31 | P a g e

The SBL Programme has proved its efficacy as a mainstream Programme for banking with the
poor. SHG-Bank Linkage Programme is advantageous to banks, Self Help Groups and also
NGOs. The main advantages of the Programme are as follows.
Advantages to bank:
a. Mobilisation of small savings.
b. The problem of dealing efficiently and economically with a large
number of small borrowers is overcome through Self Help Groups.
c. As the task of assessing individual credit needs, sanctioning,
supervising credit and monitoring repayment are externalized, the transaction cost considerably
reduced and,
d. Assured and timely repayment because of group supervision, which
leads to faster recycling of funds.
Advantages to SHGs:
a.Provide door-steps saving and credit facility for the poor
b.They enjoy total autonomy in thrift and credit management
c. Access to larger amount of funds.
d.Strive for gradual improvement in the economic status of each member
e. Promoting SHG members as well as quality micro enterprises.
f. Leading to empowerment of the poor.
Phases of SHG Bank Linkage Programme:
The SHG Bank Linkage Programme has passed through various phases over
the last one and a half decade, viz.
I. Pilot testing during 1992 to 1995
II. Mainstreaming during 1996 to 1998 and
III. Expansion from1998 onwards
The Programme has now assumed the form of a Micro Finance movement in
many parts of the country. The target of covering one third of the rural poor through linkage of 1
million SHGs to be achieved by 2007 was realized much ahead by the end of March 2004 (RBI
2007).
Partner Agencies of SHG-Bank Linkage Programme:

a)Commercial Banks:
The SHG-Bank Linkage Programme becomes a part of business of all the 27
public sector banks and 23 private sector banks. State Bank of India linked the highest number of
SHGs during 2006-2007, followed by Indian Bank and Canara Bank (NABARD 2007). The

32 | P a g e

private sector banks which significantly supported SHG financing were ICICI Bank and Vysya
Bank followed by Dhanalaksmi Bank.
b) Regional Rural Banks:
The RRBs financed SHGs in a very significant way during the period 20012006. All the 196 RRBs in the country participated in the SHG-Bank Linkage Programme during
the year 2004-2005. During the year 2006, only 158 RRBs participated in the Programme and
during 2007, the number reduced to 96.
c) Co-operative Banks:
Co-operative Banks, though comparatively late starters, have began making
forays into the Micro Finance sector on a large scale. The amendment made by many of the
states in their Co-operative Societies Act enables Co-op. Banks to take up the activity of
promotion and nurturing of SHGs. During the year 2000-2001 only 94 Co-op. Banks in the
country participated in SHG-Bank Linkage in the Programme. During the year 2006-2007, 352
Co-op. Banks participated in 11

33 | P a g e

2 SHG-Bank Linkage Programme.

Chapter- 3
Theoritical Perspective

3.1 SHG -bank-linkage program


It is by going through the existing body of knowledge it is clear that the
microfinance play a very important role in the finance sector industry and
economics. The poor, especially the rural community, has found it extremely
difficult to locate alternate sources of income and employment opportunities,
in the wake of their inadequate financial credibility. But the recent economic
perspectives on development have pointed towards the importance of micro
34 | P a g e

finance in the Alappuzha district. One method of access to micro finance by


Alappuzha district, rural women in particular, is the Self Help Group-Bank
linkage programme, where banks provide finance to the groups for
undertaking economic activities. Thus the programme provides access to
associations of rural women, who, otherwise un-united, would have found
themselves not eligible for bank finance. It is expected that the access of
such institutional credit would bring in social, personal and financial
empowerment of rural women. The present paper is an evaluation of the
findings of the study undertaken to reveal the efficacy of SHG-bank linkage
programme in Alappuzha district.

35 | P a g e

Chapter- 4
Analysis and Interpretation

36 | P a g e

4.1 PROFILE OF THE RESPONDENTS

Table 1
The below table furnishes the details of number of respondents in certain age limits and the
respective percentage:

Age
20-30
31-40
41-50
51-60
Above 60
Total
*Source: from the field data

No of respondent
7
26
30
28
9
100

Percentage
7
26
30
28
9
100

Interpretation:
From the above data, it is clear that the respondents between the age group of 20-30 years and
above 60 years make the lowest percentage. Thirty per cent respondent belongs to the age group
of 41-50 years whereas 31-40 years and 51-60 years age group makes a percentage of 28 and 26
respectively. It can be inferred that majority of the respondents belongs to the upper age category
in the society, which make an overall 84 percentage of the total.

4.2RELIGION

37 | P a g e

Table 2
The below table details the number of respondent belonging to each religion and their respective
percentage
.
Religion
No of respondent
Hindu
81
Muslim
11
Christian
8
Other
0
Total
100
*Source: from the field data

Percentage
81
11
8
0
100

Interpretation:
From the above data, it is clearly understood that the respondents belonging to Hindu religion
dominates the majority with a whopping 81 percent whereas a mere 11 percent of respondents
belongs to Muslim Community and the remaining 9 percent represents the Christian religion.
Hence the majority belongs to Hindu religion.

4.3CASTE CATEGORY
Table 3
Table showing the caste category and the number of the respondents:

38 | P a g e

Caste Category
No of respondent
General
61
OBC
26
SC
12
ST
1
Total
100
*Source: from the field data

Percentage
61
26
12
1
100

Interpretation:
From the above data it can be seen that 61 percent belong to general category, 26 percent belong
to OBC category, 12 percent belong to SC category, and remaining belongs to ST category.
General category forms the majority number of respondents.

CASTE CATEGORY
General
OBC
SC
ST

4.4 EDUCATIONAL QUALIFICATION


Table 4
The following table shows the education qualification and number of the respondents in each
category.
39 | P a g e

Educational

No of respondent
qualification
Illiterate
8
Primary
16
Secondary
28
Intermediate
20
Degree and above
28
Total
100
*Source: from the field data

Percentage
8
16
28
20
28
100

Interpretation:
Out of a sample of 100 cases, it was found that majority of the respondents are educated in which
28 percent belongs to people with qualification as degree or above, and a same percentage of
people has secondary level education whereas 20 percent people have attended the intermediate
level of education. A total of 16 percent of respondents have basic primary level education and
the remaining 8percent was found to be illiterate.

EDUCATIONAL QUALIFICATION
Illiterate
Primary
Secondary
Intermediate
Degree and above

4.5 OCCUPATION
Table 5
The below table details the number of respondent occupation and their respective percentage.
Occupation
Accountant
40 | P a g e

No Of Respondent
26

Percentage
26

Agriculture
2
Business
10
Carpenter
1
Self-motivated
5
Unemployed
56
Total
100
*Source: from the field data

2
10
1
5
56
100

Interpretation:
From the above field data we could figure out that majority of the respondents have no
occupation, in other words 56 percent of the whole respondents are unemployed. Twenty six
percent works as accountants in various levels whereas 10 percent found themselves into
business. Five percent being self-motivated and the remaining 1 percent belong to carpentry
works.

OCCUPATION
Accountant
Agriculture

26%
2%
10%

56%

Business
Carpenter
Self-motivated

1%

unemployed

5%

4.6 MONTHLY INCOME


Table 6
The below table details the number of respondents monthly income and their respective
percentage
Monthly Income
Below 5000
5000-10000
41 | P a g e

No of Respondent
20
47

Percentage
20
47

10000-15000
14
15000-20000
11
More than20000
8
Total
100
*Source: from the field data

14
11
8
100

Interpretation:
From the above stats it is clear that 20 percent of the respondents monthly income is below
5000, 47 percent of the respondents get a monthly income of 5000-10000. A group of 14 percent
of respondents receive a monthly income of Rs10000-15000 . The remaining 11 percent of the
respondents monthly income is more than 20000.

MONTHLY INCOME
Below 5000
5000 to 10000
10000 to 15000
15000-20000
More than20000

4.7 MONTHLY EXPENDITURE


Table 7
The below table details the number of respondents monthly expenditure and their respective
percentage
Monthly

42 | P a g e

Expenditure
Below 5000

No of Respondent

Percentage

45

45

50000-10000

30

30

10000-15000

20

20

More than 15000

Total
100
*Source: from the field data

100

Interpretation:
From the field data provided above , we can find that an average amount of below 5000Rs serve
as monthly expenditure for 45 percent of respondents. Thirty percent of people spends around
5000-10000 a month whereas 20 percent spend a sum around 10000-15000 as monthly
expenditure. Only 5 percent of the total respondents have monthly expenditure of more than
15000Rs.

MONTHLY EXPENDITURE
Below 5000
50000 to10000
10000-15000
More than 15000

4.8 MARITAL STATUS


Table 8
The below table details the number of respondents marital status and their respective percentage.

43 | P a g e

Marital status

No of respondent

Percentage

Married

78

78

Unmarried

Divorced

11

11

Widowed

Total
100
*Source: from the field data

5
100

Interpretation:
From the above data it can be seen that 78 percent of the respondent are married, 6 percent of
respondent are unmarried, 11 percent of respondents are divorced, and 5percent of respondent
are widowed.

Married
Unmarried
Divorced
Widowed

4.9 FAMILY PARTICULARS

Table 9
The below table details the number of respondents family particulars and their respective
percentage.

44 | P a g e

Size of family

No of respondent

Percentage

Below 2

02 04

46

46

More than 4

51

51

Total
100
*Source: from the field data

100

Interpretation:
The above information fetched from various field data it clearly suggests that 51 percent of the
total respondents has 4 or more members in their family. Families with 2-4 members make a
pretty good percentage of 46. The remaining 3 percent consists of 2 or below number of people
in the family.

4.10 HOUSEHOLD (LAND) SIZE


Table 10
The below table details the number of respondents household (land) size and their respective
percentage
Household
Size
Below 500
500-1000
45 | P a g e

(Land)

No of respondent

Percentage

38

38

33

33

More than 1000

29

Total
100
*Source: from the field data

29
100

Interpretation:
From the above stats it can be seen that 38 percent of the respondent are below 500, 33 percent
of the respondent are between 500-1000, 29 percent of the respondent are more than 1000.

4.11 LIVING IN OWN HOUSE


Table 11
The below table details the number of respondents living in own house and their respective
percentage.

Living In Own House

No Of Respondent

Percentage

Yes

92

92

No

Total

100

100

*Source: from the field data

Interpretation:
The above data suggests that 92 among 100 respondents stay in their own house whereas rest 8
percent doesnt own a house and stays either in rent or leased house.

4.12 TYPE OF HOUSE


Table 12
The below table details the number of respondents type of house and their respective percentage

46 | P a g e

Type Of House
No of Respondent
RCC
63sqfeet
Tiled
27sqfeet
Thatched
10sqfeet
Total
100
*Source: from the field data

Percentage
63
27
10
100

Interpretation:
From the above data sampling of over 100 respondents suggest that 63 percent of majority
people stay in RCC and a minority of 10 percent stay in thatched houses. The remaining
27percent lives in tiled homes.

4.13 HOW MANY ACRES OF LAND YOU HAVE


Table 13
The below table details the number of respondents land the SHG members have and their
respective percentage.

Acres of Land
Below 20cent
20-40cent
47 | P a g e

No of Respondent
63
29

Percentage
63
29

40-60cent
Above 60cent
Total
*Source: from the field data

6
2
100

6
2
100

Interpretation:
From the above data it can be seen that 63 percent of the respondent owns below 20cent of land
whereas 29 percent of the respondent owns 20-40cent of land. A good amount of 40-60cent land
is owned by 6percent of respondents and a mere 2 percent of the respondent owns above 60cent
of land.

Role of microfinance in poverty alleviation

4.14 what is your group size?

Table 14
The below table details the number of respondents group size of the SHG and their respective
percentage.

Group Size
48 | P a g e

No of Respondent

Percentage

Below 5
0
05 10
0
10 15
39
Above 15
61
Total
100
*Source: from the field data

0
0
39
61
100

Interpretation:
From the collected data, it can found that, a majority of (61percent) of respondents have a group
size of more than 15 people and remaining 39 percent has around 10-15 members in their group.

4.15 SINCE HOW LONG YOU ARE THE MEMBER OF THE GROUP
Table 15
The below table shows the details of the number of respondents since how long there are the
member of SHG and their respective percentage.

Member Of The

No of Respondent

Percentage

Below 5yrs

44

44

05 10yrs

55

55

More than 10yrs

Group

49 | P a g e

Total

100

100

*Source: from the field data

Interpretation:
Data suggests that 55 percent people corresponds to SHG from around 5-10 years. Just 1percent
of the total respondent had covered more than 10years where as the remaining 44 percent
respondents are acting as the member from past 4 years or less.

4.16 WHO MOTIVATED YOU TO JOIN SHG?


Table 16
The below table shows the details of the number of respondents who motivated them to join
SHG and their respective percentage.
Motivated You To Joining
SHG
Family
Friends
Group member
Self motivated
Total
*Source: from the field data
Interpretation:

50 | P a g e

No of respondent

Percentage

30
14
40
16
100

30
14
40
16
100

From the above stats it can be seen that 30 percent of the respondent are motivated by family to
join SHG and a 14 percent of the respondent were motivated by friends for joining SHG. A vast
40 percent of the respondent were motivated by group member to join SHG and remaining 16
percent

of

the

respondent

are

self

motivated

to

join

the

SHG.

WHO MOTIVATED YOU TO JOIN SHG?

Family

Friends

Group member

Self motivated

4.17 REASON FOR JOINING SHG


Table 17
The below table shows the details of the number of respondents reason for joining SHG and their
respective percentage.
Reason For Joining SHG
Extra income
Family problem
Financial support
51 | P a g e

No of respondent
46
4
44

Percentage
46
4
44

Get Together
Total
*Source: from the field data

8
100

8
100

Interpretation:
From the above stats it can be seen that 46 percent of the respondent are motivated for extra
income, 4 percent of the respondent are motivated to join with SHG to eliminate by family
problem, 44 percent of the respondent are motivated by the financial requirement to maintain the
family and 8 percent of the respondent are motivated for a get together.

REASON FOR JOINING SHG

Extra income
Family problem
Financial support
Get Together

4.18 DECISION MAKER OF DAY TO DAY FUNCTIONING OF YOUR


GROUP
Table 18
The below table shows the details of the number of respondents in decision making of day to day
functioning of the SHG and their respective percentage.

Decisions On Day To Day No of respondent


52 | P a g e

Percentage

Functioning
Secretary

27

63

President

63

27

All members together

10

10

Total
*Source: from the field data

100

100

Interpretation:
Analysis suggests that majority of the respondents decision are taken by secretary, 27 percent of
the respondent's decision are taken by president, 10 percent of the respondent's decision are taken
by all members together. We can see that president plays an important role in the decision
making of day to day functions of the group.

4.19 DOES BANK PROVIDE LOAN FOR SHG


Table 19
The table below shows the details of the number of respondents who receives loans from bank
for SHG and their respective percentage

bank provide loan

No of respondent

Percentage

Yes

96

96

No

Total

100

100

53 | P a g e

*Source: from the field data


Interpretation:
The above stats represent that 96 percent of the SHG respondent's where provided loan from the
bank, 4 percent of the SHG respondent's where not provided loan from the bank.

4.20 IS YOUR GROUP AN ACCOUNT HOLDER IN THE BANK


Table 20
The below tables shows the details of the number of respondents group an account holder in the
bank and their respective percentage.
Account Holder In The
Bank
Yes
No

No of Respondent

Percentage

100

100

Total
100
*Source: from the field data

100

Interpretation:
A cent percent of respondents are privileged with a bank account.

4.21 EVER TAKEN A LOAN?


Table 21
The below table shows the details of the number of respondents taken a loan and their respective
percentage.
Loan taken
No of respondent
Yes
96
No
4
Total
100
*Source: from the field data
Interpretation:
54 | P a g e

Percentage
96
4
100

The data from field sources represents that 96 percent of the respondent are taken loan from the
bank and the remaining 4 percent of the respondent have not yet taken loan from bank.

4.22 PURPOSE OF LOAN


Table 22
The below table shows the details of the number of respondents purpose of taking a loan and
their respective percentage
Purpose Of Loan
Agriculture
Small scale
Other
Total
*Source: from the field data

No of respondent
28
38
34
100

Percentage
28
38
34
100

Interpretation:
The collected data suggests that 28 percent of the respondent's have taken loan for agriculture
purpose whereas 38 percent of the respondent's took loan for the development of the small scale
industrial. Few members have taken loan for other purpose which computes to 34 percent of
overall respondents.

PURPOSE OF LOAN
Agriculture
Small scale
Other

55 | P a g e

4.23 RATE OF INTEREST FOR LOAN


Table 23
The below table shows the details of the rate of interest taken by the number of respondents and
their respective percentage
Rate of interest
11
11.5
12
Total
*Source: from the field data

No of respondent
39
30
31
100

Percentage
39%
30%
31%
100%

Interpretation:
From the above stats it can be seen that 39 percent of the respondent pay 11 percent as rate of
interest for their loan, 30 percent pay 11.50 percent as rate of interest on their loan and 31
percent pay 12 percent as rate of interest on their loan.
4.24 IS BANK LOAN AMOUNT ADEQUATE TO SHG
Table 24
The below table shows the details of the number of respondents regarding there opinion whether
the bank loan amount is adequate and their respective percentage.
Is Bank Loan Amount Adequate

No of respondent

Percentage

Yes

100

100

No

100

100

Total
*Source: from the field data
Interpretation:

It is clearly understood from the data that every individual in the group feels that the amount
provided by respective bank is adequate for their needs.

56 | P a g e

4.25 LOAN AMOUNT TAKEN FROM THE BANK


Table 25
The below table shows the details of the number of respondents regarding there opinion whether
the bank loan amount taken from the bank is adequate and their respective percentage.
Loan taken from

No of respondent
bank
Below 50000
15
50000-75000
51
75000-100000
22
More than1000000 12
Total
100
*Source: from the field data

Percentage
15
51
22
12
100

Interpretation:
The above stats suggest that 15 percent of the respondents have taken an amount
of below 50000 as bank loan. Major 51 percent of the respondent take have taken an amount of
Rs50000 to 75000 as loan whereas 22 percent of the respondent took Rs 75000 to 100000.
Minority of 12 percent respondent took a loan amount of Rs100000.

57 | P a g e

LOAN AMOUNT TAKEN FROM THE BANK


Below 50000
50000-75000
75000-100000
More than1000000

4.26 INSTALMENT PERIOD TO REPAY LOAN AMOUNT


Table 26
Instalment Period No of respondent
Weekly
0
Bi-weekly
0
Monthly
100
Total
100
*Source: from the field data

Percentage
0
0
100
100

Interpretation:
From the above stats it can be seen that all the respondent repay loan to the bank monthly.

4.27 PAYMENT STATUS


Table 27
Status

of

No of respondent
Repayment
Fully repaid
2
Partly repaid
98
Total
100
*Source: from the field data
58 | P a g e

Percentage
2
98
100

Interpretation:
Above stats shows that 98 percent of respondents have only partially repaid their loan amount
and the remaining 2 percent have closed their loan transactions with Bank by paying the whole
amount.
4.28 DELAYING IN SANCTIONING OF LOAN
Table 28
Delay In Sanctioning Loan
Yes
No
Total
*Source: from the field data

No of respondent
3
97
100

Percentage
3
97
100

Interpretation:
From the above stats it can be seen that 97 percent of the respondent say that is no delay in
sanctioning of loan by bank, 3 percent of the respondent have opinion that there was a delay in
sanctioning the loan by bank

4.29 DIFFICULTY IN THE TIME OF TAKING LOAN


Table 29
Difficulties In The Time
Of Loan
Yes
No
Total
*Source: from the field data
Interpretation:

59 | P a g e

No of respondent

Percentage

12
88

12
88

100

100

Stats suggests that about 88 percent of the respondents had no difficulties in the time of loan
where as 12 percent respondent faced difficulties in the time of loan.

4.30PERSONAL LOANS BY SHG


Table 30
Provide Personal Loan
Yes
No
Total
*Source: from the field data

No of respondent
100
0
100

Percentage
100%
0%
100%

Interpretation:
Every single respondent agrees that SHG provide personal loan which makes it a cent percent
activity.

4.31 LOAN AMOUNT PROVIDED BY SHG


Table 31
Amount
5000
7500
Up to 10000
Total
*Source: from the field data

No of respondent
1
9
90
100

Percentage
1
9
90
100

Interpretation:
References shows that 1 percent of the respondent received an amount of Rs 5000 from the SHG
as loan and 9 percent of the respondent received Rs 7500 from the SHG. A majority 90 percent
of respondents agreed that they received up to Rs10000 as loan amount.

60 | P a g e

4.32 INTEREST RATE


Table 32
Rate of interest
No of respondent
12%
100
24%
0
Above 24%
0
Total
100
*Source: from the field data

Percentage
100
0
0
100

Interpretation:
From the above stats it can be seen that the rate of interest of all the respondents in the SHG was
12 percent

4.33 PURPOSE AND UTILIZATION OF LOAN AMOUNT


Table 33
Particulars
Children education
House repair
Medical treatment
Establishment of business
Other
Total
*Source: from the field data

No
respondent
33
16
13
12
26
100

of

Percentage
33
16
13
12
26
100

Interpretation:
The field source data suggests that 33 percent of the respondents utilize the loan amount for their
childrens education but a 16 percent of the respondents utilize the loan amount for house repair.
A little 13 percent of the respondents utilize the loan amount for medical treatment whereas 12
percent of the respondents utilize the loan amount for other works.
61 | P a g e

PURPOSE AND UTILIZATION OF LOAN AMOUNT


Children education
House repair
Medical treatment
Establishment of business
Other

4.34 IMPROVEMENT IN CREDIT FACILITIES AFFTER JOINING SHG


Table 34
Particular

No of respondent

Percentage

Yes

32

32

No

68

68

Total
100
*Source: from the field data

100

Interpretation:
Analysis shows that about 32 percent of the respondents have agreed to the fact that the credit
facilities have improved after they had joined SHG and the rest restricts themselves to agree to
the same.

4.35 SOURCES OF CREDIT


Table 35
Sources Of Credit
Bank
Society
62 | P a g e

No of respondent
42
22

Percentage
42%
22%

Nil
38
Total
100
*Source: from the field data

38%
100%

Interpretation:
If the credit facilities have to improve, it can be seen that 42 percent of the respondents wanted it
from the banks, 22percent wanted from the society and the rest of the 38 percent of the
respondents were satisfied with the present credit facilities.

4.36 ATTITUDE OF FAMILY WHEN FUNCTIONING IN GROUP


Table 36
Particular

No of respondent

Percentage

Supportive

94

94

Non supportive

Total
100
*Source: from the field data

100

Interpretation:
From the above stats it can be seen that 94 percent of the family are supportive with the
respondents to function with the SHG, 6 percent of the family are non supportive with the
respondents to function with the SHG

4.37 CONFLICT AMONG GROUP MEMBERS


Table 37
Particulars
No of respondent
Yes
7
No
93
Total
100
*Source: from the field data.

63 | P a g e

Percentage
7
93
100

Interpretation:
A majority of 93 percent of the respondent says NO to conflict among group member whereas 7
percent of the respondents agrees have conflict among group members.

4.38 STEPS ADOPTED TO RESOLVE THE CONFLICT


Table 38
Particular
No of respondent
Fine
0
Counselling
7
Healthy environment 0
Total
7
*Source: from the field data

Percentage
0
7
0
7

Interpretation:
All of the 7 percent respondents who had conflicts among the group members suggest to have
counselling to resolve it.

4.39 SATISFACTORY LEVEL ON FUNCTIONING OF GROUP


Table 39
Functioning Of Your

No of respondent
Group
Highly unsatisfied
0
Unsatisfied
2
Neutral
15
Satisfied
38
Highly Satisfied
45
Total
100
*Source: from the field data
Interpretation:
64 | P a g e

Percentage
0
2
15
38
45%
100%

From the above stats it can be seen that a mere 2 percent of the respondent are dissatisfied with
the functioning of the SHG, 15 percent of the respondent are neutral with the functioning of the
SHG and a 38 percent of the respondent are satisfied with the functioning of the SHG. A good
majority of 45 percent of the respondents are highly satisfied with the functioning of the SHG.

SATISFACTORY LEVEL ON FUNCTIONING OF GROUP


Highly unsatisfied
Unsatisfied
Neutral
Satisfied
Highly Satisfied

GENERAL ENQURY
4.40 FOOD EXPENDITURE
Table 40
Before Joining
Percentage
Below 2500
69%
2500-5000
11%
5000-7500
12%
Above 7500
8%
Total
100%
*Source: from the field data

After Joining
Below 2500
2500-5000
5000-7500
Above 75000
Total

Percentage
39%
35%
14%
12%
100

Interpretation:
From above table it is clear that a major majority (69%) spent less than 2500 INR for food before
joining SHG. However the value dropped down considerably low (39%) after joining the same.
65 | P a g e

There is a substantial rise in 2500-5000 INR category after joining SHG as the value increased
from 11% to 35%. There is a slender hike in 5000-7500 INR & above 7500 category after joining
SHG. From the data it is clear that there is a general trend to spend more after joining SHG.
However 39% are unaffected and still opts to spend less than 2500 INR for food.

4.41 NON FOOD EXPENDITURE


Table 41

Before

Joining

Percentage
SHG
Below 2500
0.77
2500-5000
0.15
5000-7500
0.07
Above 7500
0.01
Total
100
*Source: from the field data

After Joining

Percentage

Below 2000
2000-4000
4000-8000
Above 8000
Total

0.48
0.3
0.21
0.01
1

Interpretation:
Since there was a general trend of spending more money on food after joining SHG, the amount
spent on non-food category plunged down significantly in below 2500 INR category. The value
dropped from 77% to 48%. Interestingly, the amount spent in non-food expenditure doubled
(15% to 30%) after joining SHG irrespective of the hike in food expenditure in 2500-5000 INR
category. Similar trend followed in 5000-7500 INR category as the value tripled from 7% to
21%. For above 7500 INR category however had no variations as the value remained the same
(1%).

66 | P a g e

4.42 MONTHLY EXPENDITURE


Table 41
Before JOIning
Percentage
Below 10000
0.95
10000-20000
0.04
Above 20000
0.01
Total
100
*Source: from the field data

After Joining
Below 10000
10000-20000
Above 20000
Total

Percentage
0.91
0.07
0.02
100

Interpretation:
From above table it is clear that majority of expenses comes under 10000 INR category. Monthly
expenditure came down from 95% to 91% after joining SHG. However for 10000-20000 INR
category there was a hike in monthly expenditure from 04% to 07%. Similar trend followed in
above 20000 INR category as the value increased from 01% to 02%.

67 | P a g e

CHAPTER-5
FINDING

5. Findings of the study

As per the study majority of the respondents belong to the hindu religion with age group 31 to 60
where the general category of caste forms the majority number of respondents.
Accordingly it was found that 28 percent of respondents fall in the category with qualification
degree or above and secondary level education but more than half of the respondents are
unemployed.
It is clear that 47 percent of the respondents get a monthly income of 5000 to 10000 where most
of the respondents have a monthly expenditure of less than 5000.

68 | P a g e

From the above data 78 percent of respondents are married shows that 51 percent of the
respondents has 4 or more members in their family.
An land size of 500 acres are owned by 38 percent of the respondents and states that most of the
respondents live in their own house.
The SHG contains a minimum of 10 members in every group. From the collected data, we found
that a 61 percent of group contains more than 15 members. In other words, the awareness of
financial benefits impressed the common man.
The concept of SHG is known to the common people from many years. Survey suggests that 55
percent of respondents is a member of the group from past 5-10 years. This undoubtedly implies
that, the SHG can provide a very good life style and financial support to the members. This
makes them willing to work together without any disputes.
From the above data, we can see that the already existing SHG members motivated 40 percent of
respondents to join the SHG. The main reason behind the motivation being the security to ones
life after joining such groups.
It is essential in our day to day life to have an extra income so as to provide a basic financial
support to the family. The reason for 46 percent of respondents to join SHG was the idea of an
extra income whereas 44 percent thought of the financial support SHG can provide.
The decision maker in group is the Secretary. The Secretary takes decision which is beneficial
for the group and to the members.
The banks provide loans to SHG to make the group members self-employed and making them
self-confident. So that a 96 percent of members responds favor to the loan.
Every members of the group is an account holder. This will make a good improvement to their
savings. In another viewpoint, the banks provide loans only through the bank accounts. Hence
being an account holder is inevitable.
From the data which accounts about the loan, it is clearly seen that 96 percent of the members
takes or have taken loan through SHG. This implies that the members in the groups are eager to
work and in return they can serve their respective families an earning member.
69 | P a g e

By attending the awareness classes, the members are using the loan amount either to improve
their agriculture or the small scale industry or the both. By doing this they are trying to improve
the financial background and their life style.
The banks are providing loans to the SHG so as to help the members. The interest rate is very
less when compared to private sectors. Microfinance is actually introduced by the government to
help the poor. The lowest interest rate starts at 13 percent in the private sectors.
To begin a small scale industry, the amount given by the banks is really adequate. The members
who are taking the loans from the banks have a clear picture about the loan amount and the
interest they have to pay back. More over they are compelled to work hard for the repayment of
their respective loan amount.
When it comes to repaying the loan amount, every group, that is, cent percent groups repay their
loan monthly taking their convenience into account.
Most of the banks dont make any delay in sanctioning loans to the groups. Rarely banks make
delay due to insufficient funds. Majority of members in SHG are not facing any difficulties for
taking loans. Some members are facing certain problems due to lack of knowledge.
Cent percent of members takes personal loans from SHG up to a sum of 10000INR at an interest
rate of 12 percent. They use the amount either for their childrens education, or house repair or
any other logical purposes. It is very helpful for members to get such loan amounts from SHG.

70 | P a g e

CHAPTER-6
SUGGESTIONS

71 | P a g e

6. SUGGESTIONS

Awareness classes should be provided for women to avoid ego and clash among the members.
It must be make sure that the loan taken from bank and other institution by SHG members is

being utilized for productive purpose.


Banks should provide more loans with less interest rate to SHG members.
It would be convenient for each member to attend every meeting without if a permanent
platform for conducting meeting is setup, regardless of primitive measures of conducting
meeting in members houses which are far apart from each other that make members fail to turn

up for the meetings.


Insufficiency of loan amount is the major reason for some SHG to work as sick units.
All the members should make it a point to attend all meetings.
The best opinion from among all individual and opposing attitude and opinions must be selected

for better functioning of SHG.


It is necessary to provide classes for imparting required information and know how to members
as majority of them are illiterate.
SHG unit members should be enlightened about the need of their participation in function and
public activities. They should also be educated about the nature of their attitude towards people
in particulars. These issues should be discussed in the meetings.

72 | P a g e

CHAPTER-7
CONCLUSION

7.CONCLUSION
73 | P a g e

Self Help Groups of rural women can form the heart of community development activities. The
pooling of minuscule and individual financial savings of the members through group activities
can act as a strong back-bone for women empowerment. Supplemented by the linkages of the
self help groups with banks, thereby enabling micro-credit facilities, the financial power of these
rural women gets substantially increased.
The present study evidences the existence of strong linkages of the SHGs with banks. The very
reason of members, as opined by them, in joining the group is the improved chances of
accessibility to loans. Also the opportunity to undertake economic activities through group
efforts, and the concomitant learning of entrepreneurial and technical skill sets act as motivators
for group membership. Thus, there exists strong positive relation between the reasons for joining
the group, and the existence of bank linkages. The strong bank linkage that exists, can visibly
enhance the opportunity of members to access loans, undertake economic activities, and develop
skills.
The high incidence of bank linkage and accessibility to finance through SHGs is still not
relieving the rural population from the clutches of money lenders and exorbitant interest rates. It
points to the important fact of insufficiency of funding through the bank linkage porgramm. The
lack of transparency in the SHG activities, and inaccessibility to official records may further
hinder the effectiveness of the movement

BIBLIOGRAPHY
Journals

74 | P a g e

1. Madhusudan Ghosh, 2012, MICRO-FINANCE AND RURAL POVERTY IN INDIA SHGBank


Linkage Programme, Vol. 31, No. (3)
2. M.Venkata Ramanaiah,, C. Mangala GowriA, REVIEW OF ETHIOPIAN MICRO FINANCE
INSTITUTIONS AND THEIR ROLE IN POVERTY REDUCTION: A CASE STUDY ON AMHARA CREDIT
AND SAVING INSTITUTION (ACSI) 2011, Vol.1, No.1
3. THE CONTRIBUTION OF MICRO-FINANCE ON THE GROWTH OF MICRO-ENTERPRISES IN
UKEREWE DISTRICT, MWANZA, TANZANIA ,2011, Vol.1, No.1
4. Dr. Padmaja Manoharan, Dr. Rameshwari Ramachandra, Dr.R. Nirmala Devi, MICRO
FINANCE INSTITUTIONS IN INDIA A STUDY ON FINANCIAL PERFORMANCE, 2011, Vol.1, No.1
5. P. Balamurugan et al. / International Journal for Research in Management and Pharmacy,
Vol. 3, Issue 1, Jan.-February 2014 (IJRMP) ISSN: 2320- 0901
Online resources
5.www.microfinancefocus.com
6. www.microfinancegateway.com
7. www.microfinance.com
8. http://en.wikipedia.org
Newspapers
9. The Hindu
10. Business Times
11.Economic Times

Book
12. Micro credit guideline 2013-2014

SHG-BANKLINKAGE PROGRAM (MICROFINANCE) IN POVERTY ALLEVIATION


WITH SPECIAL REFERANCE TO ALLAPUZHA DISTRICT
75 | P a g e

1. Age: ____
2. Religion:

(1) Hindu

(2) Muslim

(3) Christian
3. Caste category:

(4) Others

(1) GENERAL

(2) OBC

(3) SC

(4) ST

4. Educational qualification.

(1) Illiterate

(3) Secondary

(2) Primary
(4) Intermediate

(5) Degree and above


5. Occupation. ________________
6. What is your monthly income? Rs. _______________
7. What is your monthly expenditure? Rs. _____________
8. Marital status?
(1)Married
(3) Divorced

(2) Unmarried
(4) Widowed

9. FAMILY PARTICULARS:
Sl. No:

Name Relation with head

76 | P a g e

Sex

Age

Education

Occupation

10. Household size __________________


11. Are you living in own house?
(1) Yes

(2) No

12. Type of house?


(1) RCC

(2) Tiled

(3) Thatched

13. How many acres of land you have? ________________


SHG DETAILS:
1. What is your group size? _______________
2. Since how long you are the member of the group? _____________
3. Who motivated you to join Self Help Groups? ________________
4. What are the reasons for joining SHGs? __________________
5. Who take decisions on day to day functioning of your group? _______________
6. Does banks provide loans for SHG?
(1) Yes

(2) No

7. Are your group an account holder in the bank?


(1) Yes
77 | P a g e

(2) No

8. Have you ever taken a loan?


(1) Yes

(2) No

9. Mostly for what purpose loan is taken?


(1) Agricultural purpose

(2) Small scale industry

(3) Others
10. Rate of interest is to be given to the loan?_________________
11. Is Bank loan amount adequate to SHG?
(1) Yes

(2) No

12. How much loan you have taken from the bank?
a) Less than 50000

b) 50000 to 75000

c) 75000 to 100000

d) More then 100000

13. Instalment period to repay loan to the bank?


(1) Weekly

(2) Bi- Weekly

(3) Monthly
14. Status of repayment
(1) Fully Re paid

(2) Partly Repaid

15. Is there any delay in sanctioning of loan by banks?


(1) Yes

(2) No

16. Did you face any difficulties at the time of getting loan?
(1) Yes

(2) No

17. Does SHG provides personal loans?


(1) Yes
78 | P a g e

(2) No

18. How much amount did SHG provides?


(1) 5000

(2) 7500

(3) up to 10000

19. Rate of interest


(1) 12%

(2) 24%

(3) 24% Above

20. Instalment period to repay loan?


(1) Weekly

(2) Bi-Weekly

(3) Monthly
21. Status of repayment
(1) Fully Re paid

(2) Partly Repaid

22. For which purpose, you utilize the loan amount?


(1) Childrens education

(2) House Repair

(4) Establishment of business

(5) other

(3) Medical Treatment

23. Is credit facilities are improved after joining SHGs?


(1) Yes

(2) No

24. If improved, what are the sources of credit? _________________


25. What is the attitude of your family while you are functioning with the group?
(1) Supportive

(2) Non supportive

26. Is there any conflict among group members?


(1). Yes

(2). No

27.If yes steps taken to resolve it?


(1) Fine

79 | P a g e

(2) Counselling

(3) Healthy Environment

28. Are you satisfied with the functioning of your Group?


(1) Highly dissatisfied
(4) Satisfied

2) Dissatisfied

(3)Neutral

(5) Highly satisfied

29.GENERAL ENQUIRY:
IND
EX
NO

MONTHLY
INCOME

MONTHLY

FOOD

NON

FOOD

EXPENDITUR

EXPENDITUR

EXPENDITUR

AFTE

E
BEFO

AFTE

E
BEFO

AFTE

BEFO

AFTE

MONTHLY
SAVINGS

BEFO

AFTE

E
BEFO

RE

RE

RE

RE

RE

JOINI

JOINI

JOINI

JOINI

JOINI

JOINI

JOINI

JOINI

JOINI

JOINI

NG

NG

NG

NG

NG

NG

NG

NG

NG

NG

SHG

SHG

SHG

SHG

SHG

SHG

SHG

SHG

SHG

SHG(I

(INR)

(INR)

(INR)

(INR)

(INR)

(INR)

(INR)

(INR)

(INR)

NR)

80 | P a g e

REM

ARK
S

81 | P a g e

82 | P a g e