Role of Self Help Group in Women Enpowerment: With Reference to

Selected small SHG groups in Gadhinglaj Taluka©

Patil Pankaj Anil
Research Student
Department of Commerce & Management
Shivaji University, Kolhapur

Abstract
This paper is concern role of the SHG in women stabilization in Gadhinglaj Taluka. Self Help
Groups has born by the people’s need of economical aspects. Women are the strength of our
society. A sample size of 16 groups containing of 239 members have been taken for study
whether the member women are economically stable or not. It is found that most of the mem-
bers are economically stable after joining the SHG. Microfinance to Self Help Groups may be
considered as a vital tool for meeting the financial requirements of those poorer sections of
the society living in the rural areas. This study has benefited to the government for increasing
employment of SHGs. NGOs are having very strong role but they are not performing as per
requirements. This paper has suggested that Government as well as NGO should be positive
towards the SHG. Banks has also important role therefore banks also should be prompt in
their work. Banks has to provide as much loan as SHG required.
Keywords: SHG, Micro Finance, Women stabilization.
Introduction:
Traditionally banks and lending institutions do not lend money to low income
individuals especially for women because women in India normally not having any strong
resource of income. Banking and other money lending firms are not interested to provide
loans especially to women. They think that women are not capable to recover their loan. They
are very doubtful on the capacity of women but the philosophy and history tells another story.
Women are very good managers, very good conveyers of anything. Indian society is male
dominant and because of that we sophistically ignore the power of women. The potentials are
lots of in women resource, we has to know that potential. We has to find that potentials. It
will be very helpful to our nation’s development. Basically women are not having a strong
income source. They are about 90% depended on their husbands, in most of cases 100%. And
as a result of that they are not getting enough income for their betterment of for fulfill their
own wishes. SHG (Self Help Groups) had recognized the core-competency of women and did
mentionable work especially for women. SHG normally works on the base of Micro Finance.
1
SHG had been started in India since 1985. NABARD focused on supporting NGO initiatives
to promote SHG and on analyzing their potential and performance. In 1987 NABARD first
put funds into the SHG movement (in response to a proposal from MYRADA submitted in
1986). In 1987 it provided MYRADA with a grant of 1 million Indian rupees. In 1992 SHG-
Bank linkage programme had been started. It provides more energy to SHG. Now in most of
the Indian villages SHG is working very effectively and efficiently with proper use of Micro
Finance. Under the SHG most of the women comes together and does activities for their
financial betterment. In SHG women get the chance to prove themselves financially as well
as a good manager. Women can do all the activities which are comes under the management
and they have more experience than man because woman manages all home which is may not
be possible for man. If women get the chance for financial inclusion they will prove that they
are more efficient than man. According to all this, I am going to study role of Self Help
Group in Women Stabilization.
Review of Literature:
1. Nasir (2013) has studied on Micro finance in India: Contemporary Issues and
Challenges with reference of SHG. Objectives of his study are to identify the
transaction cost involved in delivering microfinance, the main problems prevailing in
microfinance in India. Non-availability of documentary evidence and he suggest to
ensure the quality of MFI in India.
2. EDA Rural Systems Pvt Ltd in association with APMAS (2006) has thrown lights
on the SHG in India. How the SHG are working and how they survive.
3. Sundaram has studied Impact of self help group in socio-economic development of
India. He has also studied that how the SHG are important to society to increase
employment. According to him SHG has socio economic importance.
4. Mohanty i.e. (2012) has studied on Micro Finance as poverty reduction tool and how
it will be beneficial to overcome from problem of poverty. They described micro
finance as poverty reduction tool, women empowerment, and Self employment. They
concluded that if micro finance is strong then definitely all problems will solve.
Conceptual Framework:
1. Concept of Self Help Group
The concept of self help groups had its origin in the co-operative Philosophy and the
co-operators by and large, including the National Federations in the Credit sector, could not
think of any better SHG than a primary co-operative credit society itself. As SHG are small
2
and economically homogenous affinity groups of rural poor, they are voluntarily coming
together for achieving the following.
1. To save small amount of money regularly.
2. To mutually agree to contribute a common fund.
3. To meet their emergency needs.
4. To have collective decision making.
5. To solve conflicts through collective leadership mutual discussion.
6. To provide collateral free loan with terms decided by the group at the market driven
rates.
Definition:
"A small economically homogenous affinity group of rural poor, voluntarily formed to save
and contribute to a common fund to be lent to its members as per group decision and for
working together for social and economic uplift of their family and community."
The Tamil Nadu Corporation for Development of Women Ltd. (TNCDW)
2. Concept of Micro Finance
Definition:
“The means by which poor people convert small sums of Money into large lump sums”
(Rutherford 1999)
Provide of small-scale financial services such as savings, credit and other basic financial
services to poor and low-income people. Basically Micro Finance is provided for short period
and at small range of amount. Micro Finance is more beneficial to the poor people and for
SHG because they have skills but not the money and with the help of Micro Finance they can
be able to utilize their skills in proper way. In India there are so many banks and money
lending firms who are providing such type of Micro Finance.
Problems of the study:
Indian society is suffering from the various problems like poverty, hunger, and the
illiteracy. Women have not been included in financial system in India. Women have various
skills but it has not utilized in proper way. India has 2nd largest population in the world. We
are always complaining about our problems and wasting lot of our precious time in that
activity. Apart from that we have to do the efforts to get the solutions. Every one is
complaining but no one is going to suggest the solution. Researcher made this study for
getting solutions of following problems.
1. Women are not able to fulfill their financial needs.
2. Women are ignored by the society.

3
 3. In our society there is lot of poverty.
4. India has low per capita income.
5. Financial inclusion is not covering women.
6. Women has secondary place in society.
7. Society thinks that women are not capable for do anything.
Objectives of the study
1. To study the role of Micro Finance in women development.
2. To measure the financial position of Self Help Group in study area.
3. To know the utilization of skills and potentials of women power resource.
4. To suggest the proper way to improve women’s financial position.
Significance of the study:
1. SHG to improve their performance.
2. Government to improve and apply better schemes for SHG.
3. Suggestions are practically possible therefore it should be implemented.
Methodology:
1. Data Collection:
a) Primary data
Present researcher has collected data through questionnaires, personal observations.
b) Secondary data.
Present researcher has been collected from newspapers, websites, books and articles
Results and Discussion:
Table No.1
Features of Micro finance Approaches towards SHG
Feature SHG
Client Primarily women
Groups 15-20 clients per group
Services Savings and Credit
Role of *MFI staff Guide and facilitate
Meeting Monthly
Saving deposits Rs. 20-100/month
Interest on saving Bank rate() + profit share
Initial loan amount Rs. 5000-10000
Insurance Sometimes loans linked to health
and life insurance
4
 Development Some associated programmes
(Source: Adapted from Sinha (2005). * Micro Finance Institutions.)

Table No. 2
Members of the Self Help Groups in study area.
Class (No. of Members) Frequency Percentage %
10-12 5 31.25
13-15 6 37.5
16-18 1 6.25
19-20 4 25
Total 16 100
(Source: Field Survey)
In the study area it is observed that Self Help Groups are containing minimum 10 and
maximum 20 members. Most of the groups are containing members within 13-15, i.e. 37.5 %
of the total. Only one group has contained member within 16-18 that is 6.25% of the total. 5
groups are having members within 10-12. 4 groups are having member within19-20.
Table No. 3
Saving per month
Classification Frequency Percentage %
1-1000 7 43.75
1001-2000 4 25
2001-3000 1 6.25
3001-4000 3 18.75
4001-5000 1 6.25
Total 16 100
(Source: Field Survey)
In the study area it is observed that Self Help Groups are collecting money as saving per
month is minimum of Rs. 500 and maximum of Rs. 4500. There are 7 groups who are having
Savings within Rs. 1-1000 that is 43.75 % of the total. Majority groups are having saving in
between Rs1-1000. One group has the highest saving amount that is Rs.4500/month. 4 groups
are having saving within Rs. 1001-2000 that is 25% of the total. 3 groups are having saving
within Rs. 3001-4000 that is 18.75% of the total. One groups is having saving within Rs.
2001-3000 that is 6.25% of the total. It is also observed that majority of the groups are having
less savings but still they are performing very well.

Table No. 3
5
 Awareness about Self Help Group
Sr. No. Particulars Yes No Total
1. Aware about all government schemes 12 (75%) 4 (25%) 16 (100%)
2. Economic development of members 15 (93.75%) 1 (6.25%) 16 (100%)
3. Participation in social work 10 (62.5%) 6 (37.5%) 16 (100%)
4. Business started 9 (56.25%) 7(43.75%) 16 (100%)
(Source: Field Survey)
In the study area it is observed that most of the groups (75%) are aware about the government
schemes. About economic development of members 93.75% groups are having positive
attitude. They told that members are developing economically through the group. In the case
of business 56.25% groups has started their own business. 62.5% groups are interested in
social work and they had done various types of social work.
Table No. 4
Loan taken by groups from banks
Classification (Rs) Frequency Percentage %
Not Taken 8 50
1-50000 5 31.25
50001-100000 1 6.25
100001-150000 1 6.25
150001-200000 0 0
200001-250000 1 6.25
Total 16 100
(Source: Field Survey)
In the study area it is observed that 50 % groups are not taken any loan from bank. But
remaining 50 % has taken loan from bank for starting various businesses. Maximum laon of
Rs. 250000 was taken from bank for business purpose. Minimum loan is Rs 20000 and
maximum is Rs. 250000.
Table No. 5
Loan provided from groups to its members
Classification Frequency Percentage %
Not issued 5 31.25
1-20000 7 43.75
20001-40000 2 12.5
40001-60000 - 0
60001-80000 2 12.5
Total 16 100
(Source: Field Survey)

6
In study area it is observed that loan issued through groups is 68.75 % for business or
education purpose. 31.25% groups have deposited their savings in bank. They do not issued
any loan to members. Minimum Rs. 5000 and maximum of Rs. 76500 is issued as loan from
groups. That is very good thing for betterment of members as well as groups. Groups are
charging 2% per month as interest on loan issued. Which will later on distributed within
group members.
Discussion:
In Gadhinglaj taluka there are 600-700 SHGs are working today. Exact number has not
recorded because each and every group is not registered. I have chosen the samples on
convenient sampling method, almost covering major part of study area. Above information I
have collected. I have taken the SHG which were established in last 3 years as well as existed
from last 7-10 years and now reformed. I have gone to the respective women of each group
who are able to tell the correct record of their Self Help Group. I have observed that number
of members is minimum 10 and maximum up to 20. And saving amount is Rs. 50 to 300.
Majority of the groups are working in various businesses in rural area the saving amount is
low because of the low income level and income sources. I have also visited ‘Shrishti Gram
Krushi Vikas’ NGO of NABARD. Who provides the all required material of books of records
and required guidance to SHG. They had provided me following information. NABARD had
started the bank linkage programme in 1992. They also help to SHG in opening the bank
account and provide necessary details while group is going on. Government has adopted very
neutral policy towards the SHG. SHG are categorized in to 2 categories 1.APL; 2.BPL. BPL
is provided all the schemes and grants while APL is not provided any scheme and grant by
Government. SHGs are taking loans from banks and utilize that money in various business
for e.g. Sewing machine, Purchasing cattle, and various kinds of production and retail
business.
Whatever amount SHG has collected through their monthly saving that money is
either issued as loan or deposited in to banks and as per the requirement that money has also
distributed as loan to the group members. Women are not only investing the money but also
getting good amount of profit also and very soon they are covering their loan. Whatever
business they started would be run by women therefore it would increase the economic
strength of involved women and that is only possible with the help of micro finance.
Amazingly no any single man is involved in that whole process, all work is done by women
themselves. According to my collected data it is observed that urban women collects more
7
money than rural women but it does not affect anymore because efficiency of work of women
is equal at both the area. Especially rural women are interested in social work as like Alcohol
free village, clean village and social awareness etc. most of the groups are working
successfully since last 9-10 years and from last 2-3 years they has been reformed and still
working effectively.
Findings:
1. Government has ignored the Self Help Groups.
2. Micro finance is utilized very effectively by Self Help Groups.
3. Micro finance is increasing the profitability of SHG.
4. Women who are included in SHG are working very effectively in business.
5. Proper guidance is not available for groups.
6. Women are restricted by the husband or other male persons.
7. Banks are providing very limited amount of loan.
Suggestions:
Self Help Group’s work is mentionable in our society. Most of the groups are involved in
social work therefore they have to develop their capacity and work strength. SHG has big
share in increasing employment and economic development. SHG should be supported by
system and for that following suggestions are given by researcher.
1. Government has to pay strict attention to NGO who are working for SHG while they are
working in proper way or not.
2. Banks should increase their loan providing capacity.
3. Group members have to co-operate with each other.
4. Social awakening programs and campaigns for guidance should be arranged by
government.
5. Monthly meetings are strictly arranged by SHG for discussing the future plans.
6. Government has to provide grants and subsidy for those groups who are working
effectively and involved in social activities.
7. Government has to put various prizes and awards for SHG according to their work.
8. Ensure the uniform distribution of finance in both the rural and urban area in India.

8
Conclusion:
I have concluded that Government is not taking the SHG positively therefore the energy or
the manpower of those groups is wasting. Micro finance is very vital in women development.
There is lack of micro finance in India. SHGs in India are working very effectively. They are
producing large amount of employment especially for women. Capacity of women is
amazing and should be implemented in other work. Amount of loan which is SHGs are
taking, they utilizing it very effectively. There are some problems also, as like, more co-
operations required within the members of the group. Husbands are not leaving their wives
free for doing the business. Therefore male dominant society is the main problem which is
not affordable. Banks are not providing the related information to groups and because of that
the groups are not getting the knowledge of any scheme of government. Proper guidance is
not available to those groups. Group members are neutral in nature about the monthly
meetings. Loan recover system is not so strong.

References:
1. National Bank for Agriculture and Rural Development Act 1981,
https://www.nabard.org/english/home.aspx
2. Bank of India http://www.bankofindia.co.in/english/home.aspx
3. Fernadez, 2006. ‘History and spread of the self-help affinity group movement in India.’
4. Microfinance and Its Delivery Models. StudyMode.com. 2007, from
http://www.studymode.com/essays/Microfinance-And-Its-Delivery-Models-119718.html
5. Planning Commission of India, 2008. ’A Report on the Success and Failure of SHG’s in
India – Impediments and Paradigm of Success’
6. Fernandez AP 2003. People‘s Institutions Managing Natural Resource in the Context of a
Watershed Strategy MYRADA, Bangalore.
7. News articles 13th Jan, 2014 from http://epaper.pudhari.com/epapermain.aspx