WOMEN EMPOWERMENT THROUGH MICROFINANCE: A CASE STUDY OF WOMEN IN SELF HELP GROUP OF TUTICORIN DISTRICT IN TAMILNADU

Transcription

1 WOMEN EMPOWERMENT THROUGH MICROFINANCE: A CASE STUDY OF WOMEN IN SELF HELP GROUP OF TUTICORIN DISTRICT IN TAMILNADU *V. Arockia Amuthan. Abstract: The Indian women from an active section of the soy and they involve in all sort of functions and performing all kinds of duties similar to man. The women are responsible citizens of the country achieving social and economic status in the all stages involved; house achieved success in bringing the woman to be main stream of decision making. Against the background of hate patriarchates system of society the women need special attention to ensure their development and participation in the decision making process at home in to community and governance. For women to become successful entrepreneurs she needs access to capital, technology and managerial know how and markets. The ensure to empower rural women lies in catalyzing opportunities for them to earn higher income in order to improve their standard of living the objective could be accomplished by establishing enterprises that are based on the locally available resources and profitable indigenous knowledge. Keywords: Women Empowerment, Micro Finance, SHGs. Introduction: Financial Inclusion and provision of easy access to credit have always been the thrust areas of interest of Government of India. Several options have been tried so far to make this end a realizable one and Self Help Groups movement is the most successful one in recent times. The success of Self Help Groups movement is well recognized and it has provided a pathway for broader issues like empowerment and growth among various societies. Rural women India suffer from being both economically and socially invisible. Individually, poor rural women can overcome economic deprivation by co-operation. To counter powerless and economic deprivation, women need to alter their self respect and social esteem. To give rural women visibility and to enable society to come in contact with poor rural women they must get organized into groups. Community approach is a viable setup to disburse credit to rural women. Thus, the arrangement for credit supply to the poor through Self Help Groups is fast emerging as a promising tool for promoting income generation and economic empowerment for women in rural areas. The ideal size of an SHG is members. The groups need not be registered and draws on remembers one family one member only. A Group consists of either only men or only women. Women s groups are generally found perform better. Members have the same social and financial background. * M.Phil., Research Scholar, Research Center and P.G. Department of Economics, Aditanar College of Arts and Science, Tiruchendur, Tamil Nadu. This Research Article Published in Marimuthu ( Ed.) (2012), Financial Services : Opportunities and Challenges in Indian Perspective, Acharya Publications, Bangalore, pp (ISBN: ). This Research Article Presented in National Conference on Financial Services: Opportunities and Challenges in Indian Perspective (FINSER ) held at Acharya Institute of Graduate Studies, Bangalore during December

2 For women to become a successful entrepreneur, the needs access to capital technical and managerial know how and market. The essence to empower rural women lies in catalyzing opportunities for them to even higher income in order to improve their standard of living. The objective could be accomplished by establishing enterprises that the based on the locally available resources and preferably indigenous knowledge. Development experience shows that gender inequalities are a major factor impeding progress towards the millennium development goals of poverty reduction. This is particularly true in rural areas where women are generally very involved in productive but lack access to assets they need to play that role efficiently. As a result of this imbalance rural women s are often more vulnerable to property than man and their limited ability to secure assets independently makes them more likely to the negatively effective by ongoing changes in rural markets and institutions. Origin and Concept of Self Help Groups The origin of the SHGs is from the brain child of Grameen Bank of Bangladesh which was founded by Nobel Laureate Mohammed Yusuf. SHGs while is initiated in from the linkage of SHGs with the banks. A SHGs is a small economically homogeneous affinity group of rural poor voluntarily deposited in a common fund to save small amount regularly with are deposit in a common fund to meet members emergency needs and to provide collateral free loans decided by the group. SHGs enhance the equality of status of women as participants, decision makers and beneficiaries in the democratic economic, social and cultural spheres of life. The basic principles of the SHGs are group approach, mutual trust and organization of the manageable groups, group cohesiveness, sprit of thrift, demand based lending, collateral fee, and women friendly loan, peer group pressure in repayment, skill training capacity building and empowerment. Table 1.1 SHGs bank linkage agencies was cumulative participation up to 31 st march 2011 Agency No. of SHGs Banks Loans (Rs. in millions) Commercial Banks Regional Rural Banks Co-operative Banks 09,18,768 25,06,565 15,27,667 2,15,602 97,217 1,05,346 Total 49,53,000 4,18,165 Source: NABARD, Annual Report, SHG bank linkage program in India The performance of banks in linking Self Help Groups to banking system sealed for their higher during the year The bank financed 11,11,000 new SHGs during The cumulative number of SHGs credit linked with banks increased to 69,53,000 as on 31 st March 2010 covering more than 9.7 crores poor households as on 31 st March The total banks loans disturbed to SHGs during the year aggregated Rs.65, million as compared to the Rs.1,76, million provided to existing disbursed during the previous year, registering a growth of per cent over the previous year. The refinance drawn by banks from NABARD stood at Rs.49,013 million during The cumulative progress in financing SHGs from 1992 onwards, in physical and financial terms in given in table 2. 2

3 Table 1.2 SHGs bank linkages cumulative progress in India Up to end of march SHGs financed Bank Loan (Rs. in million) ,995 1,14,775 2,63,825 4,61,478 7,17,360 10,79,091 16,18,456 22,38,565 29,24,973 50,10,000 61,21,000 69,53, ,930 4,809 10,263 20,487 39,042 68,985 1,13,975 1,80,407 3,78,539 5,54,562 6,19,871 Source: NABARD, Annual Report, From the above table explains that bank loans aggregating Rs. 1,13,975 SHGs with disbursed to 22,38,565 SHGs with refinance support of Rs. 41,597 million from NABARD up to march Around 90 per cent of the SHGs linked were exclusive women SHGs various studies revealed that the on time repayment of SHGs loans to banks was over 90 per cent. Review of literature: Mohanan in his study Micro-Credit and Empowerment of Women: Role of NGOs, discuss the relevance of micro-credit to women and their empowerment, considering the historical perspective of the involvement of women in the thrift and credit activity and the role of NGOs in the sphere of microcredit. The rich experience of NGOs in the sphere of credit union and their gross-root level involvement with the poor and their problems is a potential factor that affirms their elevated role in the sphere of micro-credit. The specific task and role of the NGOs in the sphere of micro-credit can be summarized as the formation of Self Help Groups, nurturing of Self Help Groups, facilitation role, mobilizing resources and formation of people s organizations. Statement of the problem: There are several study have been conducted women empowerment through microfinance in India. Still there is a need of more study in Women Empowerment because the women are responsible citizens of the country achieving social and economic status in the all stages involved; house achieved success in bringing the woman to be main stream of decision making. Our study finds to answer the following questions related to the members in women Self Help Groups in Tuticorin District. 1. Whether the personal income of members have increased or not? 2. Is there any improvement in saving habits of the members of SHGs? 3. Is there any improvement in the economic standard of the members of SHGs in the study area? 4. Is there any improvement in the social awareness of the members? Scope of the study: The present study is conducted the working of micro finance on empowerment of women in Tuticorin District, Tamil Nadu. The study has conducted in Vaigai, Mallikai, Aruloolzhi, Kaleswari, Thangam, Jaihind, Mutharamman. 3

4 Objectives of the study: The objectives of the present study are: 1. To analyse the performance of the Self Help Groups in Tuticorin District. 2. To analyze the impact of micro-credit on socio-economic empowerment of women in the study area. 3. To analyze the changes in the social conditions of the members of the Self Help Groups. 4. To suggest policy measures for socio-economic empowerment of rural women as well as effective and efficient functioning of Self Help Groups. Hypothesis of the study: 1. There is a significant increase in savings of the beneficiaries of SHGs in the study area. Statistical tools used: The data collected at primary and secondary levels were computerized and programmed to get logically consistent inference. The computerized data with the help of the statistical package for social science analyses. To collect the data, the researcher has used the quota sampling method has used between the different age groups. The data has collected from 67 women s member in Self Help Groups in Tuticorin District from seven Self Help Groups (SHGs). From six SHGs 10 each members and one SHG only 7 members are there in Mutharamman SHG. Information from the women member in Self Help Groups has collected through direct questioner method. The interpretation and analysis of the study based on primary data this contains frequency distribution tables prepared on the basis of selected close ended respondent from structural questions. Research Gap: Further the other researcher can do research on social awareness of the SHG, how to bring foreign investment in SHG, and bringing socially backward men in SHGs. Table 1.3 Performance of Self Help Groups Sl. No. Performance No. of respondents Percentage 1 Good Satisfactory Poor - - Total The table 1.3 explains that 20.9 per cent of the respondents have felt that functions of Self Help Groups are satisfactory and 79.1 per cent of the respondents have felt that the functions of their Self Help Groups are good. All the members are getting more benefits from their Self Help Group, in one way or the other. Therefore, they had a pro SHGs view. 4

5 Table 1.4 Interest rate for Micro Credit Sl. No. Opinion No. of respondents Percentage 1 High Reasonable Low Total The table 1.4 explains that 50.7 per cent of the members have the opinion that the interest rate is reasonable and 46.3 per cent of the members opined that the interest rate is low. Only 3 per cent of the members replied that the interest rate is high. From the study shows that the interest rate is fixed by SHGs is low. So members have borrowed loans from SHGs and uses for several purposes. Table 1.5 Reasons for borrowing loan Sl. No. Purpose of loan No. of respondents Percentage 1 Consumption Income generating Activities Asset building To repay the old loan Education Emergencies Total The table 1.5 explains that 4.5 per cent of the members have borrowed loan for meeting the education expenses for their children, 3 per cent of the respondent have borrowed that loan for constructing houses, whereas 4.5 per cent of the respondents have borrowed loan for unexpected family medical needs and 9 per cent of the members have got loan to repay the old loans per cent of the members have borrowed money for both consumption and daily needs while 58.1 per cent of the members for income generating activities like as start small petty shops, increase the investment on their business and investment on agricultural activities. Sl. No. 5 Income Level Table 1.6 Level of income of the members of SHGs (per month) Before joining SHGs After joining SHGs No. of Respondents Percentage No. of Respondents Percentage 1 Below Rs Rs Rs Rs Rs Rs Rs Rs Rs Above Rs Total

6 Before becoming as members in the SHGs 28.4 per cent of the households have an income below Rs as income whereas 31.4 per cent of the respondents have received the lowest income between Rs Rs per cent of the respondents are in receipt of Rs Rs.8000 and 13.4 per cent of the respondents were with the income of Rs Rs and 11.9 per cent of the respondents have earned above Rs After joining SHGs, the level of income have changed considerably.13.4 per cent of the respondents have received an income below Rs per month, 37.4 per cent of the respondents received the income level between Rs Rs and 16.4 per cent of the respondents have earned the income level between Rs Rs Only 6 per cent of the respondents earned an income amount between Rs Rs and 13.4 per cent of the members have earned above Rs Average income of before joining SHGs was Rs per month. It improved to Rs after joining SHGs. So it is concluded that after becoming the members in the SHGs, their income have increased considerably. Table 1.7 Sources of Saving Sl. No. Savings No. of respondents Percentage 1 Commercial Banks Post Office Co operative Banks / Regional Rural Banks Total People save their money in various sources such as Banks, Post Office and Co-operatives, etc. The table 1.7 explains that 56.7 per cent of the respondents save their surplus in Commercial Banks like State Bank of India, Tamilnad Mercantile Bank, Indian Bank and Indian Overseas Bank per cent of the respondents save their income in Co-operatives Banks and Regional Rural Banks like as Pandian Grama Bank and District Co-operative Society Bank Ltd. Only 1.5 per cent of the members maintain their savings in various Post Offices in Tuticorin District. 6

7 Table 1.8 SAVINGS (per month) Sl. No. Savings in Rs Before joining SHGs No.of Respondents Percentage After joining SHGs No. of Respondents Percentage 1 Below Rs Rs. 201 Rs Rs. 601 Rs Above Rs Total Level of savings before and after joining the Self Help Groups in our study area presented in this table, 41.8 per cent of the households have the savings less than Rs. 200 before joining group and after joining the group it is 35.8 per cent for savings less than Rs per cent of the members have the savings of Rs. 201 Rs. 600 before joining group and it increased considerably to 28.4 per cent after joining SHGs. Among the respondents, 20.9 per cent of the respondents have savings of before joining group amount Rs. 601 Rs and it was decreased to 17.9 per cent after joining group. Test Procedure To test t -test following form is followed. There is a significant increase in savings of the beneficiaries of SHG in the study area To test this hypothesis data related to the savings of the SHGs beneficiary is considered the following test procedure has been followed. H o = There is significant and increase in the savings after joining SHGs. H 1 = There is no significant increase in the savings after joining SHGs. The result of the test is given below Statistics Df t-sat T critical to fail Income in the loan Period

8 The calculated value is 2.77 and the table value at t=0.5 is 1.65 and since the calculated value is more than the table value the null hypothesis is rejected and the inference is that there is significant improvement in the saving of the beneficiaries due to SHGs program. Table 1.9 Changes on socio economic status after joining SHGs Sl. No. Changes on Socio Economic status after joining SHGs Increased Same Total 1 Recognition in Family 65(97.0) 02(03.0) 67(100) 2 Recognition in Community 15(22.4) 52(77.6) 67(100) 3 Interaction with outsides 19(28.4) 48(71.6) 67(100) 4 Literacy and Education 44(65.7) 23(34.3) 67(100) 5 Access to health services 24(35.8) 43(64.2) 67(100) 6 Access to sanitation facility 20(29.9) 47(70.1) 67(100) 7 Access to credit sources 16(23.9) 51(76.1) 67(100) 8 Family Income 21(31.3) 46(68.7) 67(100) 9 Voicing your concern 45(67.2) 22(32.8) 67(100) 10 Nutrition Awareness 52(77.6) 15(22.4) 67(100) 11 Family planning awareness 14(20.9) 53(79.1) 67(100) 12 Girl child development awareness 59(88.1) 08(11.9) 67(100) 13 Decision making related to child centered 13(19.4) 54(80.6) 67(100) 14 Decision making related to money centered 10(14.9) 57(85.1) 67(100) 15 Access to credit resources 05(07.5) 62(92.5) 67(100) Source: primary data. * Figures given in brackets indicate percentage. Socio Economic conditions have improved remarkably since the formation of Self Help Groups. The positive changes have reported increased in case of recognition in family (65 per cent), nutrition awareness (77.6 per cent), girl child development awareness (88.1 per cent), literacy and education knowledge (65.7 per cent) and increase in voicing for observed respondents concern in society (67.2 per cent). These changes have noticed in among SHGs members in our study area. The socio economic condition of members remain such constrain are same in after joining group. The same / unchanged status reported in case of access to credit sources (92.5 per cent), decision making related money centered (85.1 per cent), decision making related to child centered (80.6 per cent), family planning awareness (79.1 per cent), recognition in community (77.6 per cent), inte raction with outsides (71.6 per cent) and access to sanitation facility (70.1 per cent). These statuses remain the same in among SHGs members in our study area. 8

9 Table 1.10 Suggestions to improve the SHGs Sl. No. Suggestions No. of respondents Percentage 1 To improve the credit facility Co ordination To improve the savings Need for well planning To reduce interest rate Total The table 1.10 explains that Most of the respondents, i.e per cent have suggested for improvement in credit facility per cent of the members have suggested improvement in the savings and 31.4 per cent of the members have suggested that pure showed be a need for cooperation among the members, 13.4 per cent members needs planning and 11.9 per cent of the members have suggested for reduction in the interest rate. Major Findings of the study: 1. All the respondents have developed the able of saving with the activities of SHGs. 2. Study reveals that majority of the members being to agricultural family. 3. After joining the SHGs the members income have increased considerably. 4. The main purpose of savings of the members for the education, marriage and agriculture building. 5. After joining SHGs with they have got self confident and to living with community. 6. Socio Economic status of the respondents has increased in the form of family recognition, literacy and education on becoming members of SHGs. Recommendations of the study: 1. Group activity needs to be encouraged in the interest of building up of strong SHGs. Selection of the leader needs to be done carefully. 2. Should provide self employment loan for individual SHGs members. 3. The training for the members is essential to successfully run the SHGs. Skill development of women will enable them to take up enterprises and thereby contribute more to their family income. 4. The government should make budgetary allocation for training components for the SHG members. Conclusion: The micro credit summit (1997) held at Washi ngton has stressed on provision of credit to 100 million of the world s poorest families to overcome the problems of underemployment and poverty. Micro finance can play a crucial role in achieving Millennium Development Goals and reducing world s poverty by 50 per cent by the end of India is the home to 22 per cent of the world s poor. Poverty reduction is possible by providing easy access to credit for small entrepreneurial activities. Considering the vast number of poor, discriminated and underprivileged women and the need of financial services, there is tremendous scope for micro financing through SHGs in India. Empowering women is not just for meeting their economic needs but also more holistic social development. The SHGs empower women and train them to take active part in socio economic progress of the nation. Pandit Jawaharlal Nehru said, To awaken the people, it is women who must be awakened; once she is on the move, the family moves, the village moves and nation moves. Now the women are awakened by the Self Help Groups and achieved to the Financial Inclusion. 9

10 REFERENCES 1. Government of India (2011), Annual Report National Bank for Agriculture and Rural Development, Publication Division, New Delhi. 2. Jain, Ritu (2003), Socio economic impact through self help groups, Yojana, Vol. 47, No. 7, April. 3. Jeyaraman (2002), Role of Self Help Groups in Fisher Women in Development, Penisular Economist, Vol. XII, No. 2, May. 4. Mohanan (2000), Micro Credit and Empowerment of Women: Role of Non Governmental Organasations, Yojana, Vol. 44, No. 02, February. 5. Ritu jain (2003), Socio Economic impact through Self help groups, Yojana, Vol. 48, No. 8, May. 6. Sundar (2004), Region al Variation in performance of Self help Groups, Social Welfare, Vol. 50, No. 10, January. 7. Sundar Raj (2006), Self Help Groups and Women s Empowerment, Social Welfare, Vol. 53, No. 15, January. **** 1 0