WOMENFOLK THROUGH SELF HELP GROUPS A CASE STUDY

Transcription

1 ROLE OF MICRO FINANCE IN EMPOWERING RURAL WOMENFOLK THROUGH SELF HELP GROUPS A CASE STUDY A Dissertation submitted to Manonmaniam Sundaranar University in partial fulfilment of the requirements for the Degree of Master of Philosophy in Economics By V. AROCKIA AMUTHAN (Reg. No. : ) DEPARTMENT OF ECONOMICS ADITANAR COLLEGE OF ARTS AND SCIENCE VIRAPANDIANPATNAM TIRUCHENDUR SEPTEMBER

2 Dr. (Major) P. PRABHAKARAN, M.A., M.Phil., Ph.D., Associate Professor, Department of Economics, Aditanar College of Arts and Science, Tiruchendur CERTIFICATE Certified that this is a bonafide record of work done by Mr. V. AROCKIA AMUTHAN, under my guidance and supervision during the year Place: Tiruchendur. Date: Dr. (Major) P. PRABHAKARAN Head of the Department External Examiner ii

3 Mr. V. AROCKIA AMUTHAN. Register No. : M.Phil. Research Scholar, Department of Economics, Aditanar College of Arts and Science, Tiruchendur DECLARATION OF THE CANDIDATE I hereby state that the dissertation entitled, ROLE OF MICRO FINANCE IN EMPOWERING RURAL WOMENFOLK THROUGH SELF HELP GROUPS A CASE STUDY is my original work and no part of this dissertation has been formed for the basis of award of any other Degree, Diploma, Fellowship or other similar titles. Place: Tiruchendur. Date : V. AROCKIA AMUTHAN iii

4 ACKNOWLEDGEMENTS I thank the almighty for having given me the will power and good health to reach my goals in every stage of my life and who made me to rise to this level. Foremost, I would like to express my deep and sincere gratitude to my guide Dr. (Major) P. Prabhakaran, Associate Professor, Department of Economics, Aditanar College of Arts and Science for awakening an inveterate interest in the subject of study and for his able guidance and supervision. Despite his multifarious pre-occupations with his academic and administrative responsibilities, constant encouragement and irreproachable assistance extended by him in the preparation of this dissertation work enabled me to complete the dissertation on schedule and to the present shape. In fact, his patience, kindness and generosity went for beyond the responsibilities of a supervisor. I am grateful to him but the debt I owe him will remain forever unpaid. I am extremely thankful to Dr. V. Gopalakrishnan, Principal, Aditanar College of Arts and Science for given me opportunity to undertake this study. I am very much thankful to Dr. A. Chelladurai, Head of the Department of Economics, Aditanar College of Arts and Science for offering great encouragement throughout the course of my study. iv

5 My sincere thanks to all the members of the faculty in the Department of Economics, Aditanar College of Arts and Science for their constant encouragement. I express my gratitude to Mr. R. Muthukrishnan, Librarian, Aditanar College of Arts and Science for providing necessary books for reference towards this study. I also remember the support provided by the Mr. Dani Selvakumar, Clerk cum Cashier, South Indian Bank, Tuticorin for their cooperation and helping me in providing the necessary information during the time of collection of data. I have no words to thank my parents for their support and love. Finally, I would like to thank my friends Mr. Shyam, Mr. Jabez, Mr. Sandeep, Mr. Babu, Mr. Tenzin, Mr. Benzvi Karthar Singh and Mr. Daniel for their advice and encouragement throughout my studies. My sincere thanks to each and every one who were directly or indirectly involved in the successful completion of this dissertation. Place: Tiruchendur. Date : V. AROCKIA AMUTHAN v

6 CONTENTS Page ACKNOWLEDGEMENTS LIST OF TABLES LIST OF FIGURES iv vii ix CHAPTER I INTRODUCTION 1 II REVIEW OF LITERATURE 13 III IV V GENESIS AND DEVELOPMENT OF SELF HELP GROUPS AN OVERVIEW 32 ECONOMIC SIGNIFICANCE OF THE MEIGNANAPURAM VILLAGE PANCHAYAT 63 AN ASSESSMENT OF SELP HELP GROUPS IN THE MEIGNANAPURAM VILLAGE PANCHAYAT 75 VI SUMMARY OF CONCLUSIONS AND SUGGESTIONS 127 BIBLIOGRAPHY i - vii APPENDICES APPENDIX I QUESTIONNARIE i APPENDIX II LORENZ CURVE TABLE viii APPENDIX III COEFFICIENT OF VARIANCE x vi

7 LIST OF TABLES Table Title of the Table Page I 1 Distribution of the selected respondents 8 III 1 Total SHGs Status in Tamil Nadu as on 31 st March III 2 Period of Existence and Coverage of Tuticorin District 57 III 3 Members wise training cost incurred for Tuticorin District 59 V 1 Age Group 75 V 2 Caste of the respondents 77 V 3 Religion of the SHGs members 78 V 4 Level of Education 79 V 5 Marital Status 81 V 6 Family Size 82 V 7 Types of Family 83 V 8 Types of House 84 V 9 Ownership of House 85 V 10 Amenities Available in SHGs Members Residents 86 V 11 Cooking Facilities in House 87 V 12 Employment of Respondents 88 V 13 Decision Making in SHGs Members Family 89 V 14 Group Wise Membership 90 vii

8 LIST OF TABLES (Contd..) Table Title of the Table Page V 15 Year Wise Membership 91 V 16 Motivation to join groups 92 V 17 Positions held by members 93 V 18 Frequency of group meeting 95 V 19 Deciding meeting agenda 96 V 20 Awareness and knowledge of SHGs activities 97 V 21 Level of income of the members of SHGs (per month) 99 V 22 Level of expenditure of the members of SHGs (per month) 104 V 23 Assets 107 V 24 Savings (per month) 109 V 25 Source of Saving 111 V 26 Purpose of Saving 112 V 27 Amount of loan in SHGs members 114 V 28 Reasons for borrowing loan 115 V 29 Loan repayment by the respondents 116 V 30 Opinion about interest rate 117 V 31 Details of the training programme 118 V 32 Imparting of training 119 viii

9 LIST OF TABLES (Contd..) Table Title of the Table Page V 33 Impact of training 120 V 34 Changes on socio economic status after joining SHGs 122 V 35 Performance of Self Help Groups 124 V 36 Problems in Self Help Groups 125 V 37 Suggestions to improve the SHGs 126 LIST OF FIGURES Figure Title of the Figure Page V 1 Age Group 76 V 2 Levels of Education 80 V 3 Positions held by members 94 V 4 Extent of variability in the distribution of income 103 V 5 Extent of variability in the distribution of expenditure 106 V 6 Savings of the respondents 110 ix

10 CHAPTER I INTRODUCTION

11 1 CHAPTER - I 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 realisable 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. The origin of the concept of Self Help Groups started and formed in 1975 and is a brainchild of Grameen Bank of Bangladesh, which was founded by Mohammad Yunus. In India it was initiated by National Bank for Agriculture and Rural Development (NABARD) in but the real efforts were taken place after Thus, the micro finance in India is mostly perceived through SHG-Bank linkage model and micro finance institution model. Rural women in India suffer from being both economically and socially invisible. Individually, poor rural women can overcome economic deprivation by co-operation. To counter powerlessness and economic deprivation, women need to alter their self respect and social esteem. To give rural women visibility

12 2 and to enable society to come in contact with poor rural women they must get organised 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. Self Help Groups have emerged as a popular method of working with people in the recent years. People come together to form Self Help Groups when they are mutually aided to overcome common problems. This movement stems from the people s desire to meet their needs and determine their own destinies through the principle of by the people, for the people and of the people. STATEMENT OF THE PROBLEM Self Help Groups are self managed groups of women who have come together to promote savings among themselves as well as pool savings for activities benefiting either individuals or communities economically. Self Help Groups primarily deal with economic resources, which in turn empower people through the values of equality, participation, accountability and transparency. SHGs are built on two principles. They are homogenates and physical proximity. Self Help Groups are basically small associations of individual members, known to each other, who come together for a common and collective purpose.

13 3 The Self Help Groups are created to enable the members to reap economic benefits of mutual help, solidarity and joint responsibility towards self and sustainable development. The Self Help Group organizes women to cope with immediate purposes depending on the saturation and need. Members support each other and are accountable to one another through the sharing of information on referral services and other available resources and asset in decision making on community, family and individual members. Self Help Groups with the support of other such groups can make federations like common interest groups to advocate jointly, to obtain services, aid and equipment and for integration in the larger community as a common interest development group. These are all the broad based foundations on which the principle of mutual help in promoted thorough Self Help Groups. Whether, these principles have practicable application or not are a thrust area of interest in economics. It is with this intention, this study intends to probe. The government has decided to give loans to the people of the SHGs. It will improve the standard of living of the members of the SHGs and its have planned to provide awareness to their members in many fields like health care, farming.

14 4 Our study finds to answer the following questions related to the members in women Self Help Groups in Meignanapuram Village Panchayat. 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 attempts to examine the socio-economic impact of the SHGs on the beneficiaries. It examines how far the programmes have helped in raising the income and levels of living of the rural poor women and in enabling them to come over the poverty line. The study would provide a framework for drawing suitable programmes for the empowerment of women through micro finance in Village Panchayat levels. The study examines the changes in the economic conditions of the members of women Self Help Groups in the study area. Improvement in political and social aspects of the members didn t form part of the study. It prober the influence of women Self Help Groups on its members in Meignanapuram Village Panchayat only.

15 5 OBJECTIVES OF THE STUDY The objectives of the present study are: 1. To evaluate the performance of the Self Help Groups in Meignanapuram Village Panchayat. 2. To analyse the impact of micro-credit on socio-economic empowerment of women in the study area. 3. To anlayse 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. METHODOLOGY For scientific analysis and meaningful interpretation of an economic problem, it is necessary to formulate a suitable methodology.

16 6 1. SOURCES OF DATA This study makes use of the primary data and secondary data. Primary data were collected from the survey conducted by the researcher. The required information and data were collected on various aspects from the sample respondents through personal interview concerned with the aid of schedules. Due care was taken to have cross checks in schedules of the level of knowledge of the respondents and all the precautions were taken to ensure the accuracy and reliability of data. All the schedules have scrutinized so as to appraise the qualitative and quantitative aspects of the data before each schedule was passed for tabulation. Secondary data relating to the savings, loans, revolving fund received from banks and repayment undertaken were elicited from the relevant records of the SHGs and from the animators/leaders concerned. Information on Self Help Group at the state and district levels were obtained from many sources including Governmental and Non-Governmental Organizations (NGOs) and f inancial institutions. Besides, detailed discussions were also held with the officials involved in the implementation of the project at various levels and the representatives of Panchayat Raj Institutions (PRIs).

17 7 2. SAMPLING DESIGN Interview schedules relating to the socio - economic background, microcredit lending, utilisation and repayment, constraints and various other aspects relating to social empowerment of the SHGs members were collected through pre - designed questionnaire from 67 members representing 7 SHGs from the Meignanapuram Village Panchayat. Among these SHGs members are selected random sampling - lottery method technique was adopted for the study. Among the 46 Self Help Groups from the study area, 7 Self Help Groups were selected at random representing six villages. Out of 134 respondents from the seven Self Help Groups, 67 were selected at random, which supplied the relevant information for the study. Table I 1 shown that distribution of the selected respondents.

18 8 TABLE I 1 DISTRIBUTION OF THE SELECTED RESPONDENTS Village Total No. of SHGs Randomly Selected SHGs Name of the SHG Total No. of the Members Selected No. of the respondents Meignanpuram 18 2 Vaigai Malikai 18 9 Muthulakshmipuram 09 1 Indira Mardurkarai 07 1 Kaleswari Manikapuram 06 1 Thangam Santhapuram 05 1 Jaihind Govindammalpuram 01 1 Mutharamman Total PERIOD OF THE STUDY It is a cross section analysis. (i.e.) It covered a period of one year 4. TOOLS USED The use of statistical tools helps us to evaluate the problem under studies in an accurate manner. Percentage analysis was used owing to the constraints imposed by the nature of data. Also, tabular analysis of data on socio-economic condition,

19 9 women empowerment and microcredit lending, utilization, repayment and economic activities were carried out. Class interval technique was used to analysis the age, family size, income, savings, assets and food expenditure. Modal Value was used to the find the impact of training in Self Help Group members. Coefficient of Variation was used to the analyse the income and expenditure variations and Lorenz Curve used for show the variations in income, expenditure and so on. IMPORTANCE OF THE STUDY This study helps to improve the efficiency of the individuals in the Self Help Groups. This study is used to know the empowerment of women through Self Help Group in rural areas. It will enhance the functioning NGOs activities, Self Help Groups and bankers. This will help us to understand the perfect utilization of bank loans in Self Help Groups.

20 10 LIMITATIONS OF THE STUDY The study was confined to Meignanapuram Village Panchayat of Tuticorin district covering only seven Self Help Groups. The researcher personally contacted the women Self Help Group members individually and it was a herculean task to make them willing to answer the questions listed in the interview schedule. However, with great difficulty their responses were obtained by paying sincere and thoughtful attention to bring out several distinct features of saving and credit programmes. The data collected were cross- checked with available records such as registers, Bank Savings Account pass-books and records of banks concerned to ensure accuracy of the data collected. Limited logistics and time available to the researcher made the study confined to the one Village Panchayat only. However, there is a scope for further research in this area with more emphasis on all aspects of the microcredit programme.

21 11 CHAPTER SCHEME This study consists of six chapters. Chapter I is Introductory. It consists of statement of the problem, scope of the study, objectives, source of data, sampling design, period of the study, tools used, importance of the study, limitations of the study and chapter scheme. Chapter II deals with the various studies conducted in the past. Chapter III briefly discusses to the Genesis and Development of the Self Help Group - An Overview. It traces the historical background of the concept of micro -credit and the development of the SHGs. This chapter also explains the concept of SHG, characteristics of SHGs, formation and development of SHGs, role of the NABARD, role of the NGOs and the progress of the SHGs in International, in India, in Tamil Nadu and the study area. Chapter IV deals with Economic Significance of the Meignanapuram Village Panchayat furnishes the location of Tuticorin district and history of the study area. This chapter also explains economic status and business facilities in the study area, demographic features, climate and temperature, transport facilities, educational facilities and market facilities in the study area.

22 12 Chapter V analyse An Assessment of Self Help Groups in the Meignanapuram Village Panchayat. It deals with the impact of the SHGs on the economic conditions of the members. It highlights the economic impact in terms of changes in asset value, savings, borrowings, impact on income generation, poverty alleviation and employment generation. Chapter VI presents the summary of findings and problems faced by the Self Help Groups and offer various suggestions for the successful implementation of the Self Help Groups.

23 CHAPTER II REVIEW OF LITERATURE

24 13 CHAPTER II REVIEW OF LITERATURE The review of literature to any study helps the investigator to have a deep insight, clear perspective and a better understanding of the chosen problem and the various factors connected with the study. Mohanan 1 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 micro-credit. 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 summarised as the formation of Self Help Groups, nurturing of Self Help Groups, facilitation role, mobilizing resources and formation of people s organisations. Churchill 2 undertook a study entitled Micro Credit Programme in South Africa A Case Study to assess the impact of micro-enterprise credit 1 Mohanan, Micro Credit and Empowerment of Women: Role of Non Governmental Organasations, Yojana, Vol. 44, No. 02, February 2000, pp Churchill, Micro Credit Programme in South Africa A Case Study, Kurukshetra, Vol. 51, No.10, August 2003, pp

25 14 on the small scale enterprises, on the living conditions of entrepreneurs and their families and on the benefits to the next generation in the programmes of the Get Ahead Foundation in South Africa. He points out that micro-credit has a positive impact on the monthly profit but little impact on job creation. Mehrotra 3 has made a comparative study of the State Bank of India Performance with Self Help Groups. In his view, the State Bank of India financing scheme for Self Help Groups has been quite encouraging. The branch officials themselves encourage the poor to form Self Help Groups in a number of centers. They also utilise the services of the Non-Governmental Organisations for the same purpose. He points out that with the help of the reputed Non-Governmental Organisations in states like Tamil Nadu, Kerala, Karnataka and Andhra Pradesh, good progress has been made possible by the State Bank in the Self-Help Groups schemes. He states that the Self-Help Groups have promptly repaid 80 per cent to 90 per cent of the finance given to small-scale units by the branches. To sum up the author stresses that the SHGs is a good concept and every effort should be made to ensure its success. He also states that the SHGs may eventually be the only viable units of source on account of low transaction cost, high percentage of recovery and mobilisation of rural savings through the informal system. 3 Mehrotra, Linkage Banking State Bank s Experience, State Bank of India Monthly Review, Vol.36, No.02, February 2003, pp

26 15 Talekar 4 has taken a study on Micro Credit Management by Women s Self Help Groups. This study aims to evaluate the performance of micro credit programmes in the pre and post credit conditions. The objective of this study is to take the review of the emergence of SHGs programmes in Partur Taluk in Gujarat. This study deals with both primary and secondary data. A sample of 20 SHGs from 402 SHGs had been selected on simple random sampling basis. The study had been concluded that all the members formed as a group mainly to initiate income generation activities and asset creation efforts. A study on Women Empowerment through SHGs A Case Study conducted by Kavitha and Nagaraj 5. The principal objective of this study is to analyse the economic empowerment of women through SHGs in Ingaladhal Panchayat of Chitradurga District. The other objectives are: To study the income, expenditure and savings of members before and after joining SHGs; to know the role of SHGs and its performance of rural credit and to study the empowerment of women through Self Help Groups in Ingaladhal Panchat. In this study fifty respondents were taken by simple random sampling method. The study found that the income of the women had increased after joining the SHGs. 4 Talekar, Micro Credit Management by Women s SHGs in India, Economic and Political Weekly, Vol. XIX, No. 19, April 2005, pp Kavitha and Nagaraj, Women Empowerment through SHG A case study, Southern Economist, Vol.50, No. 9, September 2011, pp

27 16 So that the monthly household expenditure has also risen to a considerable level. Thus the micro finance through SHGs has reached the people. Mayandi and Govindarajan 6 have studied on Problems and Prospects of SHGs in Theni District. The objective of this study is to assess the role of Self Help Groups in rural development and to identify the problems of the members of Self Help Group. This study deals with both primary and secondary data. The researcher has adopted multi-stage random sampling. The present study is empirical in character based on survey method. In order to study the attitude of the members towards problems and prospects of Self Help Groups, factor analysis and percentage analysis were employed. The study found that with appropriate market support strategies, the members could effectively build enterprises as a source of their employment and income. If the financial sources, effectively delivered to women, may help them to make a meaningful improvement in their economic and social condition and reduce gender inequality in rural areas. Angappapillai 7 has taken a study on the Performance of Self Help Groups: A Micro Study. The primary objective of this study is to examine the 6 Mayandi and Govindarajan, Problems and Prospects of SHGs in Theni District, Southern Economist, Vol. 50, No. 8, August 2011, pp Angappapillai, Performance of Self Help Groups: A Micro Study, Southern Economist, Vol. 10, No. 10, January 2011, pp

28 17 socio-economic and demographic profile of sample SHGs members; to explore the nature and type of training undergone and its impact and to examine the various difficulties faced by the members in carrying out the production activities of SHGs. The study based only on primary data. To analyse the collected data, the simple percentages were used. Apart from this, the simple arithmetic mean, coefficient of variation and the techniques like linear and compound growth rates have been used. The study had concluded that there is a considerable increase in the income generated from their activities. Nagabhushanarao and Geethanjali 8 conduct a study on Performance of Self Help Groups in Srikakulam District in Andhra Pradesh. The specific objective of the study is to examine the performance of the Self Help Groups. Out of 150 Self Help Groups, 50 Self Help Groups selected on the basis of multi-stage stratified sampling technique. The data collected primarily through a pre-designed well structured schedule. There were two hypothesis have been framed such as a dominance of group leaders over member of the SHGs and the loan has been taken mainly for consumption purpose. This study concluded that the organization is strong and yielding positive results and the members are utilizing the funds mostly for the purpose of income generating activities rather than consumption purpose. 8 Nagabhushana rao and Geetanjali, Performance of Self Help Groups in Srikakulam District in Andhra Pradesh, Southern Economist, Vol. 49, No. 20, February 2011, pp

29 18 Hema 9 has taken a study on Socio - Economic conditions of Self Help Groups cattle rearers of Musiri Taluk. The prime objective of this study is to assess the income earning capacity of SHGs women through cattle rearing; to find out the expenditure pattern of SHGs cattle rearers; to study the saving pattern of SHGs women; to find out the general and specific problems faced by SHGs cattle rearers; to understand the living and working conditions of SHGs cattle rearers and to know about the government welfare schemes for SHGs cattle rearers. A sample of 50 SHGs cattle rearers were selected by the method of simple random sampling. The study deals with both primary and secondary data. The study concluded that the regular income of the cattle rearers largely depend on the number of cross bred cows owned by them and the quality of fodder fed to the animals. Lakshmi Ramanathan 10 assessed the Socio Economic impact of Linkage with Banks in Self Help Groups. The primary objective of the study whether formation of Self Help Groups and linking them with banks had beneficial impacts on both economic and social life of the SHGs members. Identifying one SHGs each from State Bank of India s branches at Aghai, Gorhe, Jawahar and Dahanu 9 Hema, A Study on the Socio Economic Conditions of SHGs Cattle rearers of Musiri Taluk, Southern Economist, Vol. 49, No. 20, February 2011, pp Lakshmi Ramanathan, Socio Economic impact of Linkage with Banks in SHGs, Journal of Political Economy, Vol. 07, No. 05, April 2008, pp

30 19 collected the primary data. The collection of data was done through structured questionnaire and personal interviews with SHG members. The study had concluded that women as a group are consistently better in promptness and reliability of repayment. Thus SHG-Bank linkages are a benchmark in women s empowerment and socio-economic development of women at the village level. Tharabai 11 assessed the Micro credit and social capitalism in rural Tamil Nadu. The main objective of this study is to find out their participation and involvement in the group and thereby their individual development. The study adopts stratified random sampling. The study concluded that group cohesiveness; group integration among the members is the positive impacts of SHGs. The saving habit and credit management have created self-reliance in women as they have their own resource base. Venkateshamurthy and Dinesh 12 conducted a study on Self Help Groups and Empowerment of Women: A Case Study. This study was carried out to find out the impact of SHGs activities on women empowerment. In this study both primary and secondary data were used. Random sampling method was used for the selection of villages. The study found that SHGs in the study area are taking 11 Tharabai et.al., Micro Credit and Social Capitalism in Rural Tamil Nadu, Social Welfare, Vol. 50, No. 10, January 2004, pp Venkateshamurthy and Dinesh, Self Help Groups and Employment of Women: A Case Study, Southern Economist, Vol. 49, No. 18, January 2011, pp

31 20 the lead and playing an important and pivotal role in social transformation welfare activities and infrastructure building and they have served the cause of women empowerment. Kumaran 13 assessed the Self Help Groups and Micro Credit Synergic Integration. The primary objective of this study to assess the structure and function of SHGs in terms of mobilization of saving, delivery of credit and recovery of loan; to examine the role played by Self Help Groups promotion agencies and SHGs in promotion and effective management of micro enterprises. The study was carried out in the Pune district of Maharashtra. For the purpose of the study, 15 sample cases of SHGs were selected on a random basis. The study deals with both primary and secondary data. The study had concluded that due to technical training and escort services provided to the entrepreneurs, the micro enterprises set up by the members of the SHGs, promoted by NGOs and banks were more viable and sustainable as compared to those formed by the NGOs promoted groups, where these services were lacking. Leelamma Devasia and Jancy Antony 14 assessed the Social development issues in Self Help Groups. The main objectives of this study is to understand the 13 Kumaran, Self Help Groups and Micro Credit Synergic Integration, Kurukshetra, Vol. 51, No.10, August 2003, pp Leelamma Devasia and Jancy Antony, Social Development issues in Self Help Groups, Social Welfare, Vol. 50, No. 10, January 2004, pp

32 21 social background of the respondents; to assess the women s understanding of the SHGs; to know the nature of benefits received by the women and to investigate their aspirations about SHGs. This study deals with both primary and secondary data. In order to choose the sample size of 80, multistage random sampling technique is used. The study had reported that some men lead an idle life as their women have access to credit via SHGs. Hence SHGs need to be developed, as places where the quality of life of women is upgraded and their access to resources need to be protected by addressing social issues. Sundar and Asokan 15 assessed the Regional variations in the performance of Self Help Groups. This study analyse the regional variations in the implementation of women development programme under self-help approach. This study based on a two-way analysis. The first part of the analysis related to overall performance based on percentage analysis of actual data. The second aspect of this analysis relates to construction of index of performance based on chosen indicators viz., number of Self Help Groups per female population, per capita bank credit, per capita credit linkage. It has been concluded that there is a widespread regional variations in the implementation of women development programme in some parts of the country. The implementation of SHGs is quite encouraging in the southern region, particularly 15 Sundar and Asokan, Regional Variations in the Performance of Self Help Groups, Social Welfare, Vol. 50, No.10, January 2004, pp

33 22 in Andhra Pradesh, Tamil Nadu, Karnataka and Pondicherry. The remaining regions have shown a very low level of implementation of women development programme. Vinayagamoorthy 16 assessed the Women empowerment through Self Help Groups A case study in the North Tamil Nadu. The overall objective of the study is to analyse the economic empowerment of women through SHGs in the Northern Districts of Tamil Nadu. This study used the primary data. In this study 134 respondents were selected from 20 SHGs by simple random sampling method. This study found that the income of the women had increased after joining the SHGs. So that the monthly household expenditure also has been raised to considerable level. In this way SHGs in Northern Tamil Nadu are very successful in helping women empowerment and rural areas. Tamil Selvi and Ratha Krishnan 17 assessed the Role and Performance of Self Help Group leaders in Tamil Nadu. The primary objective of this study is to assess the role performed by SHGs leaders. The study was taken up among SHGs leaders in Omalur Taluk of Salem District. Samples of 120 SHGs leaders were selected for the study and they are distributed throughout the three blocks 16 Vinayagamoorthy, Women Empowerment through Self Help Groups A case study in the North Tamil Nadu, Social Welfare, Vol. 53, No.12, April 2007, pp Tamilselvi and Ratha Krishnan, Role and Performance of SHGs leaders in Tamil Nadu, Social Welfare, Vol. 50, No. 10, January 2004, pp

34 23 of Omalur Taluk of Salem District. The study revealed that socio-economic development of members and dissemination of information to members about government development programmes and welfare schemes were performed by less number of leaders. The leaders were to be motivated further to perform better. Sundar Raj 18 in his study on Self Help Groups and Women s Empowerment pointed out that empowerment can serve as a powerful instrument for women to achieve power and status in society. Self Help Groups are potential source to empower and institutionalize participatory leadership among the marginalized and to identify plan and initiate development activities. Moreover, this study envisages that participation of Self Help Groups to bring about savings, education, health, environment, cleanliness, family welfare, social forestry etc., and makes them self reliant. This study concluded that Self Help Groups contribute significantly to the overall development of women in rural areas is strengthened and the various aspects of rural life where the empowered women can contribute are delineated. 18 Sundar Raj, Self Help Groups and Women s Empowerment Social Welfare, Vol. 50, No.10, January 2004, pp

35 24 Nagayya and Koteswara Rao 19 through a study Micro Finance and support organization in the Southern States of India, examined the recent trends in SHGs - Bank linkage programme at national and state level, with special reference to Andhra Pradesh in detail and certain aspects of the other three southern states Tamil Nadu, Karnataka and Kerala. The aspects covered are state initiatives, federation structure, services beyond credit performed by SHGs, linkages with various programmes. In respect of the other states, aspects covered are Kudumbashree projects of Kerala, DHAN foundation s work with base in Tamil Nadu, MYRADA and Sanghamitra Rural Financial Service with base in Karnataka, and ICICI Bank s linkage with SHGs in the partnership model. The roles of SHGs federation s and micro financial institutions have been highlighted brining out issues on which attention needs to be focused in future. Soundarapandian 20 in his study Micro Finance for Rural Entrepreneurs Issues and Strategies, made an attempt to analyse the growth of the SHGs and the role of microfinance in developing the rural entrepreneurship. The study suggests that though there is a positive growth rate of the SHGs. There are wide 19 Nagayya and Kotewara Rao, Micro finance and support organization in the Southern states of India, Journal of Rural Development, Vol.28, No.1, April 2008, pp Soundarapandian, Micro Finance for Rural Entrepreneurs Issues and Strategies, Kurukshetra, Vol. XIII, No.4, December 2006, pp

36 25 variations among states in terms of growth of Self Help Groups. Linkages of banks with the SHGs are found not responsible for this variation. Moin Qasi 21 in his work Self Help Groups A Novel Approach to Rural Development, makes an attempt to study the reasons for the linkage of members of Self Help Groups in rural development. According to his findings, a common bond like caste, sub-caste, blood, community and place of origin or activity linked the members of Self Help Groups. He stated that woman Self Help Groups are more effective than those of others and they have more chances for survival. Although social homogeneity is used in establishing these groups, the real objective is for economic factors, the author stated. The author further insisted that while providing support to self-help groups it is necessary to keep in mind the sentiments and emotional values of rural women. The support provided must be sensitive to their feelings, appropriate and timely. Punithavathy pandian and Eswaran 22 have analysed the Empowerment of women through Micro Credit. According to them, micro credit is different from other poverty alleviation schemes. The role of NABARD in micro credit was twofold viz. promotional and financial. Promotional efforts assume the form 21 Moin Qasi, Self Help Groups A Novel Approach to Rural Development, Social Welfare, Vol.50, No. 10, January 2004, pp Punithavathy Pandian and Eswaran, Empowerment of Women through Micro Credit, Yojana, Vol. 22, No. 13, November 2002, pp. 6 8.

37 26 of the Self Help Groups Bank linkage programme and facilitating training. Financial involvement is in terms of providing refinance, revolving fund assistance and grants. Micro credit ensures the poor women with employment and income. Smita G.Sabhlok 23 in her study entitled, Self Help as a Strategy for Women s Development in India, says that the Self Help Groups can make women contribute to economy. It has changed the lives of many in India. Group power has been found to be patent force in giving collective empowerment and voice to the poor women in rural areas, but has not necessarily empowered them beyond the confines of patriarchy. There is a long way to go before reorientation of power relationships both in the household and at the societal level. A study entitled The Impact of Zaimbuko s Micro-Enterprise Programme in Zimbabwe: Baseline Findings, conducted by Carolyn Barnes and Ericak Cog 24 identifies the impact of participation in the Zaimbuko programme upon clients and their households highlight that there is great scope for capturing the clients ability to save if the legal issues can be resolved. The reality of hungry seasons and periodic shortages of working capital are responsible for their poverty, which can be improved with savings and/or insurance products. 23 Smita G. Sabhlok, Self Help as a Strategy for Women s Development in India, Social Welfare, Vol. 50, No.12, March 2004, pp Carolyn Barnes and Ericak Cog, The Impact of Zaimbuko s Micro Enterprise Programme in Zimbabwe: Baseline Findings, Kurukshetra, Vol.51, No.13, May 2006, pp

38 27 Jay Anand 25 in his study entitled Micro Finance in Kerala studied the Community Development Society model in 1993 for the emancipation of the poor women of Alappuzha in Kerala. It is evident from this survey that those members who have some unit activity earlier could use the micro-credit effectively for expansion/modification and they reaped the maximum benefit. In some cases, the failure of group activity has led to a financial crisis and imbalance for all the members, while it is not complex in individual activities. It is observed that a few women dominated the group. Sharma 26 in his study Forest Policy Role of Self Help Groups studied the role of Self Help Groups in the development of the tribal people. According to him, Self Help Groups have a flexibility of approach and working but they have failed to develop a work culture, which is acknowledged by the tribal s themselves. He is of the opinion that better coordination is required from the voluntary agencies and the government departments for its better performance. 25 Jay Anand, Micro Finance in Kerala, Kurukshetra, Vol. 48, No. 11, August 2000, pp Sharma, Forest Policy Role of Self Help Groups, Southern Economist, Vol. 16, No. 06, March 2010, pp

39 28 Manimekalai and Rajeswari 27 in their work Empowerment of Women through Self Help Groups, analysed the women Self Help Groups formed by the Non- Governmental Organisations in the rural areas of Tiruchirappalli District in Tamil Nadu for the purpose of promoting rural women through self-employment. The Non-Governmental Organisation namely, Society for Education and Village Action and Empowerment (SEVAE) has been working in 362 villages and helping a total of one-lakh women beneficiaries consisting of different avenues of self-employment like petty businesses, processing, production and service units. Arul Kamaraj 28 in his study titled, Self Help Groups New Mantra for Empowerment, says that the Self Help Groups undertake entrepreneurial activities at smaller level with minimum capital requirements. In future, the inbuilt strength of the Self Help Groups will pave the way to undertake mega projects, like projects performed by joint stock companies, public sector enterprise and the like the SHGs have power to create a socio - economic revolution in the rural areas India. 27 Manimekalai and Rajeswari, Empowerment of Women through Self Help Groups, Yojana, Vol. 32, No.4, July 2000, pp Arul Kamaraj, Self Help Groups New Mantra for Empowerment, Kurukshetra, Vol.45, No.06, December 2002, pp

40 29 Sebastian 29 in his study, Promotion of Women Entrepreneurs through Self Help Groups, examines the promotion of women entrepreneurs through SHGs. According to him the women entrepreneurs who have started small enterprises expand them into large-scale units. Self Help Groups have made readymade garments and export them. A woman SHGs in Dindigul District of Tamil Nadu runs a unit providing agro - services with a total turnover of ` 12 lakhs or more per annum. But most of the other Self Help Groups are not able to reach up to the expectations. Some of the reasons cited were non availability of funds for investment, dearth of technical and managerial skills, inability to manage the labour force, dual role burden, lack of professionalism, gender bias. Subah Singh Yadav 30 in his study Self Help Group Movement in Rajasthan Bright Prospects found that about 13 lakh rural poor families had access to financial services throughout the 98,500 SHGs in Rajasthan. During the last four years the SHG-Bank Linkage Programme witnessed significant progress in Rajasthan. The performance of the Government Development Department, the NGOs and the banks under the programme had commendable. 29 Jebastine, Promotion of Woman entrepreneurs through Self Help Groups, Kurukshetra, Vol.53, No.8, November 2002, pp Subah Singh Yadav, Self Help Groups Movement in Rajasthan Bright Prospects, Kurukshetra, Vol. 32, No. 4, October 2006, pp

41 30 Nanda 31 in his study, Linking Banks and Self Help Groups in India and the Role of NGOs: Lessons Learned and Future Perspectives, studied the role of linking banks, Self Help Groups and Non-Governmental Organisations in India. He observed that the model NGOs which act as facilitators continue to be the most popular, since 42 per cent of the SHGs are linked with banks by these Non Governmental Organisations. The analysis insists further on the need for adopting different strategies and approaches in different regions in India. The strategy for the southern regions should be the consolidation and deepening of the programme and nurturing of emerging Self Help Group federations. For Eastern, Western and Northern regions it should be the expansion of the SHGs programme through identifying and supporting new Non-Governmental Organisations. Suriakanthi 32 in her study Literacy Essential for SHGs analysed the need for literacy of the Self Help Group members. A random survey of 120 group s shows nearly 95 per cent of the members and 75 per cent of the office bearers are illiterate. The female office-bearers manage to carry on the activities with the help of their husbands and educated wards. They use 31 Nanda, Linking Banks and Self Help Groups in India and the Role of NGOs: Lessons Learned and Future Perspectives, Southern Economist, Vol. 37, No. 22, May 2009, pp Suriakanthi, Literacy Essential for Self Help Groups, Social Welfare, Vol. 47, No. 05, September 2000, pp

42 31 to narrate the incidents that happen in the meetings to their husband/ward and they prepare the report. Fifty per cent of the group s survey shows that only literate members prepare the minutes and accounts on behalf of the office bearers who are illiterate. It is found that ten per cent of the illiterate members do not even know the amount saved by them. She strongly insists on the necessity of imparting basic education to all Self Help Groups. Karmakar 33 in his study Self Help Groups in Orissa: Some Conceptual Issues, examined the existing credit delivery system in India with special reference to the credit needs of the rural poor. He studied the importance of the micro-credit needs for tribal women in rural areas and the micro-enterprises in the non-farm sector in Orissa. The study focuses on the availability, credit requirements and the problems faced by the tribal people in availing of it. It is felt that the setting up of micro-enterprises particularly in the non-farm sector would go a long way in reducing poverty in rural areas. According to him, the microcredit approach through Self Help Group would be the only best mechanism to deliver credit to the rural poor. 33 Karmakar, Self Help Groups in Orissa: Some Conceptual Issues, Kurukshetra, Vol. 59, No. 01, November 2010, pp

43 CHAPTER III GENESIS AND DEVELOPMENT OF SELF HELP GROUPS AN OVERVIEW

44 32 CHAPTER III GENESIS AND DEVELOPMENT OF SELF HELP GROUPS - AN OVERVIEW INTRODUCTION Throughout the history, people have formed groups with others who have something in common with them, and people who have socially and economically oppressed also joined together to overcome the barriers they face. Self Help Group is about people coming together with others who are affected by a particular issue [experience, disadvantage, discrimination exclusion and the like] to support each other and to work together to change the disadvantage affecting them. The activities that the groups perform include community education, information, mutual support and the like. Formal financial system to cater to the invariably failed needs of the rural poor. Though, they are small and unorganised, exclusion of those segments from the access to finances will not yield the desired result, on the expected lines. Self Help Groups and local financial intermediaries have gained wide recognition in most developing countries in Asia by providing facilities for savings and lending on a micro level. India also attempted such things at regional levels by means of organizing SHGs functions on the above lines. In this chapter,

45 33 an attempt has been made to analyse the Concept of Self Help Groups, Characteristics of SHGs, Functions of SHGs, SHGs- on International initiative, SHGs in India, SHGs in Tamil Nadu and SHGs in the study area. CONCEPT OF SELF HELP GROUPS Probably the concept of SHGs 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 SHGs than a primary co-operative credit society itself. 1 As SHGs are small and economically homogeneous affinity groups of rural poor, they are voluntarily coming together for achieving the following: To save small amount of money regularly To mutually agree to contribute to a common fund To meet their emergency needs To have collective decision making To solve conflicts through collective leadership and mutual discussion and To provide collateral free loans with terms decided by the group at the market driven rates. 1 Tamil Nadu Corporation for Development of Women Ltd., - Credit Guidelines for Self Help Groups, Handbook 2007, p.5.

46 34 Today the SHGs movement is increasingly accepted as an innovation in the field of rural credit in many developing countries including India to help the rural poor. It is considered a vehicle to reach the disadvantaged and marginalized section, which in the normal course cannot have the access to credit facility from the financial institutions. The Tamil Nadu Corporation for Development of Women Ltd., (TNCDW) in its credit guidelines for the SHGs defines an SHG as a small, economically homogeneous 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 upliftment of their families and community. The distinguishing features of Self Help Group are: An SHG normally consists of not less than twelve persons (with a maximum of twenty) of similar economic outlook and social status. It promotes objectives like economic improvement and raising resources for development and freedom from exploitation. It has its own by-laws for the proper functioning of the group as well as for the observance of certain rules by the group members and regulations concerning membership.

47 35 The form of such a group could be mostly on an informal basis (Unregistered). Periodical meetings of members are held for solving their problems (economic and social) and they collect fixed savings of the members. The savings of members are kept with a bank in the name of the group and the authorized representative of the group operates the bank account. The deposit kept in the bank is used for the disbursement of loans to members for purposes including consumption at the rate of interest decided by the group (Usually higher than what the banks charge). Sources of funds are the contribution by members, membership fee, interest from loans, proceeds of joint business operation and income from investments. Loan funds may be used for purposes including social and common investment. The Self Help Groups, being a group of like-minded persons, gets empowered to solve most of its problems of a non-financial nature such as raw material and input supply, marketing, better adoption of technology, education and training for realization of its objectives for development.

48 36 CHARACTERISTICS OF SHGs The important characteristics of SHGs are: They usually create a common fund by contributing their small savings on a regular basis. The groups evolve a flexible system of operations often with the help of the NGOs and manage their common pooled resources in a democratic manner. Loan requests are considered for approval in periodical meetings, with competing claims on limited resources being settled by consensus regarding greater needs. Loaning is mainly on the basis of mutual need and trust with minimum documentation and without any tangible security. The amounts loaned are small, frequent and for short duration. Rates of interest vary from group to group depending upon the purpose of loans and are often higher than those of banks but lower than those of moneylenders. Emerging rural, social and economic issues are discussed, at periodical meetings of the SHGs and

49 37 Defaulters are rare due to group pressure and intimate knowledge of the end use of the credit as also of the borrower's economic resources. FUNCTIONS OF SHGs The important functions of SHGs are: Enabling members to become self-reliant and self-dependent. Providing a forum for members for discussing their social and economic problems. Enhancing the social status of members by virtue of their being members of the group. Providing a platform for members to exchange their ideas and views. Developing and enhancing the decision-making capacity of members. Fostering a spirit of mutual help and co-operation among members. Instilling in members a sense of strength and confidence which they need for solving their problems. Providing organizational strength to members. Promoting literacy and increasing general awareness among members and Promoting numerically and equipping the poor with basic skills required for understanding monetary transactions.

50 38 Thus the SHGs function on the principle of the five "P"s: 2 i) Propagator of Voluntarism. ii) Practitioner of Mutual Help. iii) Provider of Timely Emergency Loan. iv) Promoter of Thrift and Savings. v) Purveyor of Credit. FORMATION AND DEVELOPMENT OF SELF HELP GROUPS The first and foremost step is to promote and develop SHGs as effective and sustainable institutions. The process of promotion and development of these groups is organic and needs to be evolved over a period. A lot of process inputs are essential for organizing the members and developing their leadership capabilities to promote the SHGs. Equal efforts need to be put in for nurturing and building them as institutions for the future. Each of these institutions has various stages of development and definite milestones of growth. The process of group formation involves a series of tasks carried out in a sequence. They are: 2 Tamil Nadu Corporation for Women Development Ltd., Op.Cit, pp

51 39 1. SHORT LISTING OF POTENTIAL VILLAGES In the process of formation, the potential villages have to be short-listed. For short- listing the potential villages, the following criteria are followed. Remoteness of the village. Lack of infrastructure facilities like electricity, roads, drinking water and the like. Low literacy rates and high mortality rate. Hamlets with less than 100 families. Smaller land holdings and Existence of moneylenders and intensity of exploitation. 2. IDENTIFYING THE POOREST OF THE POOR The process of identifying the poorest of the poor involves three steps, viz., village mapping, wealth ranking and sharing information with the villagers. In village mapping, the entire village structure consisting of houses, streets, trees, schools, government buildings, common buildings, street lights, temples and water facilities have to be covered. It helps to understand the exact number of families living in the village and to initiate a dialogue for intervention.

52 40 In the wealth ranking process, the families selected in the potential villages are categorized as the poorest, the poor, the moderate and the rich families mainly to identify the poorest of the poor families for group formation. In order to seed the concept of the SHGs, the information collected through these two processes is shared with the poorest people of the village to get their approval and authenticity. 3. SEEDING THE CONCEPT Once the process of selecting the poor is complete, the need for collective action, promotion of savings and sanctioning of credit are emphasised among the poor. Conducting special meetings involving leaders from other Self Help Groups carries out this process. 4. FORMATION OF GROUPS After seeding the concept of SHG, steps to form the groups are taken up. In this stage, the steps are initiated to name the groups and frame norms and operational guidelines relating to functioning, saving and lending of the groups. In addition, groups can be assisted for selection of office-bearers such as President, Secretary and the Treasurer and defining their roles and responsibilities.

53 41 5. REGULARIZING THE GROUP LEVEL SYSTEM A group level system is primary for the proper functioning of the groups. After three to five months of group formation, the following steps are followed to set up a system at the group level; The minutes are written every month and read at the end of every meeting; Simple accounting system and necessary books are opened and maintained from the first day itself; Awareness of the norms of the groups among all members is created and Training is imparted to the office-bearers and group accountants for clarifying their role. 6. STAGES OF GROUP DEVELOPMENT Each group goes through several stages in development. These stages are by and large common to all groups, though their manifestations may be different. FIRST STAGE The initial stage in the life of a small group is concerned with forming the group. This stage is characterized by members seeking safety and protection, tentativeness of response, seeking superficial contact with others, demonstrating dependency on existing authority figures (trainer or facilitator), complaining about

54 42 physical and simple matters (light, sleeping and food arrangements, seating and the like.) and a certain degree of smart get up to the authority to gain his approval. Members at this stage either engage in 'busy' type of activity or withdraw and show apathy. SECOND STAGE The second stage is marked by the formation of dyads and triads. Members seek out similar others and begin a deeper sharing of self. Continued attention to the subgroup creates a differentiation in the group and tensions across dyads/triads may appear. The members feel comfort and support in their dyads/triads and feel strong enough to challenge the authority figure. Strong dyads attempt to show defiance of authority. Focus on task performance begins to emerge, but energy is mostly spent within a sub-group. 'Pairing' is a common phenomenon. THIRD STAGE The third stage of development is marked by a more serious concern with task performance. The dyads/triads begin to open up and seek out other members in the group. Efforts are made to establish various norms for task performance. Members begin to take greater responsibility for their own groups and relationship with the authority figure becomes relaxed. Others who are

55 43 dissimilar in the group are accepted and interaction among dissimilar people takes place around the task. FOURTH STAGE This is the stage of a fully functioning group where members see themselves as a group and get involved in the task fully. Each person makes a contribution and the authority figure is also seen as part of the group. Group norms are followed and collective pressure is exerted to ensure the effectiveness of the group. The group redefines its goals in the light of information from the outside environment and shows an autonomous will to pursue those goals. The long-term viability of the group is established and nurtured. WORKING MANUAL OF SHGs There are no uniform rules and regulations for the SHGs, and they may vary from group to group. The promoter of the group formulates the rules and regulations for the group. The general rules and regulations, which may be suitable for all groups, are summarized below.

56 44 1. GROUP FORMATION The group formation is preceded by a village level household survey to gather the baseline data. The promoters should conduct this, and a suitable poverty assessment method should be used for the purpose. To facilitate sustainability, the total number of members of the group should range between 12 and 20. The age limit for membership will be from 21 to 60. The group must be a homogeneous one though not necessarily from the same caste or religion. The target group must be the poorest. 2. MEETINGS The group must meet weekly or fortnightly for collection of savings and repayment of loan amount and for discussing all other matters. The group meetings need to be conducted with a certain discipline in relation to regularity, time and items to be discussed. 3. GROUP SAVINGS The group members must be encouraged to save as much as each can without it being a uniform amount for all. Usually the SHGs start off with a minimum savings of all members. As the years pass the savings may be optional according to the capacity of each member.

57 45 4. GROUP COMMON FUND The amount such as fines imposed on members, grants from the NGOs, bonuses for various programmes and service charges on external loans should be put into the common fund of the groups. All common expenses related to the group may be met from this common fund. 5. ROTATION OF GROUP FUND All savings and excess of common fund would be rotated as short-term loans amongst the members at the rate of interest decided by the group. 6. TRAINING The staff of NGOs and Bank staff impart training to the office-bearers of the SHGs, members of the groups and representatives of the cluster level federations. 7. BOOKS AND REGISTERS TO BE MAINTAINED The books and registers to be maintained by each SHG to ensure proper accounts are given below. Attendance Register, Minutes Book, Savings Ledger, Loan Ledger, General Ledger, Cash Book, Individual Pass Book, Receipt Book and Payment Voucher.

58 46 8. ANNUAL AUDITING A qualified auditor should audit the accounts of the groups annually. The Self Help Group should meet the audit cost. SHGs AN INTERNATIONAL INITIATIVE The SHG is the brainchild of Grameen Bank of Bangladesh, which was founded by Prof. Mohammed Yunus of Chittagong University in The concept of SHG serves to underline the principle for the people, by the people and of the people. Mohammed Yunus, popularly known as the father of micro credit system, started a research project in Bangladesh in 1979 and came out with ideas of micro credit that resulted in the establishment of Grameen Bank in In 1984, the participants of the Third International Symposium on Mobilization of Personal Savings in Developing Countries organized by the United Nations, agreed in the final resolution that internal savings must provide the basis of credit programmes, state control over interest rate must be relaxed and there should be more decentralized financial services and strong linkage between the formal and informal credit institutions for development.

59 47 In 1986, the Asia and Pacific Regional Agriculturist Credit Association (APRACA) devised on a coordinated programme for the promotion of the linkage between the banks and the SHGs for rural savings mobilization and credit delivery to the rural poor. In 1989, the Central Bank of Indonesia with the involvement of Self Help Promotional Institution (SHPI) started a pilot project entitled Linking the Banks and the SHGs. In 1993, a first step was taken in Thailand by opening a Bank for Agriculture and Agricultural Co operative (BAAC) and allowed to provide loans for farm related activities and as a second step in early 1999, Thailand Government approved amendment to BAAC Act. By 2002, there were 13 Thai Commercial Banks, 5 Credit Fancier Companies (type of finance company), 18 Finance Companies and 18 Foreign Commercial Banks to help micro finance poverty alleviation programme. In 2003, Tanzania began pilot testing and provided access to micro credit to economically disadvantaged people using the village banking methodology. EVOLUTION OF SELF HELP GROUPS IN INDIA In India soon after independence, there has been an aggressive effort on the part of the Government, which was concerned with improving the access

60 48 of the rural poor to formal credit system. Some of these measures have been institutional, while some others were through implementation of focused programmes for removal of rural poverty. Reaching out of the far-flung rural areas to provide credit and other banking services to the hitherto neglected sections of the society is an unparalleled achievement of the Indian Banking System. The main emphasis is the spread of the banking network and introduction of new instruments and credit packages and programmes were to make the financial system responsive to the needs of the weaker sections in the society comprising small and marginal farmers, rural artisans, landless agricultural and non - agricultural labourers and other small borrowers falling below the poverty line. With the implementation of the above policies, further the Government of India in its developmental planning emphasized the promotion of agriculture and other allied economic activities through credit intervention for ensuring integrated rural development and securing the prosperity of the rural areas. In pursuance of this, formal credit institutions have been guided by the principle of growth with equity and a large share of the credit disbursed for various activities was channelized towards the weaker sections of the society.

61 49 Consequently, by the implementation of several poverty alleviation programmes, the number of people below the poverty line has declined from million in to million in The number of operational holdings is expected to have crossed the 100 million mark with more than 80 per cent being small and marginal holdings. This institutional credit system needs to meet the challenge of delivering credit to an ever-increasing number of rural people who need greater access to formal credit. It may have to reinforce its own structure at the grass root levels and also have to devise new ways of reaching out to the rural poor. As a result, the experience of the implementation of the above discussed Poverty Alleviation Programmes led to the introduction of the Integrated Rural Development Programme (IRDP) on 2 nd October, 1980 with the specific objective of raising the poor rural families above the poverty line. Such families considered credit support from banks as an important input in taking up economic and gainful activities. In spite of these impressive achievements in the expansion of the credit delivery system and the special programmes, nearly half the indebted rural households are still outside the ambit of the institutional credit system. They approach the moneylenders for meeting their consumption and production

62 50 in the absence of institutional support. Some of the poor who have not been reached even by the vast network of the institutional credit delivery system, have organized themselves into self help groups (SHGs) and many such groups have come into existence either spontaneously or with the active involvement of the voluntary agencies which motivated the rural poor to pool their meager financial resources for meeting their small and frequent consumption and production credit needs. PILOT PROJECT - THE HISTORY OF SHGs IN INDIA Encouraged by the results of the studies of the SHGs experience, the NABARD in consultation with the Reserve Bank of India (RBI), the Commercial Banks (CBs) and the NGOs launched the pilot project of linking the SHGs with the Commercial Banks in and issued detailed guidelines in February The RBI advised the Commercial Banks in July 1991 to extend finance to the SHGs as per the NABARD guidelines. Subsequently, the linkage project was extended to the Regional Rural Banks and the Cooperatives. The formal credit system has the resources, manpower and technical capability to handle any volume of credit dispensation. The pilot project on linking the SHGs with the Banks was launched aiming at combining the positive factors of both the systems and ensuring advantages to both the formal credit

63 51 system and the SHGs. The traditional attitude of a banker that the poorest of the poor is not reliable and the banks are not meant for them is a myth to be dispelled. The distinct advantages envisaged under the project for the Banks and the SHGs are that the Banks are advised to win the confidence and trust of the rural poor. Through the pilot study is intended to find the impact of the SHGs with the Banks. However, during the pilot phase of the project, a number of other studies have also been conducted, aiming at comparing the advantage expected and the reality. SELF HELP GROUPS IN TAMIL NADU Manifold activities of SHGs have paved the way for improving village economy. Creating avenues for skill development, including leadership qualities and enabling economic independence are major functions of the Mahalir Thittam, a project of Tamil Nadu Corporation for Development of Women Ltd., (TNCDW) which aimed at empowerment of women. Tamil Nadu doing well on the SHG front has resulted in the boasting of more than 3.78 lakhs of SHGs with a membership of lakhs women as on This includes 2.61 lakhs of SHGs directly covered by the Tamil Nadu Corporation for Development of Women Ltd., through the successful fostering of savings habit and promptness in loan repayment.

64 52 Three years ago, women were reluctant even to attend Gram Sabha Meetings. Of late the attendance of women at such meetings went up by 65 per cent. The message of the importance of social audit was disseminated through the training for the SHGs. The women began attending the meetings and learnt representing their grievances. They are able to give priorities for their needs and to reorganize themselves into networks at the Panchayat level to decide their agenda. The SHGs have become the tool for institutionalizing convergence between various welfare departments. MAHALIR THITTAM (SCHEME FOR WOMEN) OF TAMIL NADU Tamil Nadu is one of the leading states of India in promotion of the SHGs. Geographically Tamil Nadu has 385 Blocks with 13,180 Panchayats. Out of lakhs population (2001 Census) in Tamil Nadu, lakhs were women. In Tamil Nadu 3,71,312 SHGs have been formed as on 31 st March 2010 under Mahalir Thittam. These SHGs have an enrollment of lakh women members with a whooping, savings of ` 1,82, crore and the average group size was 17 members. Mahalir Thittam is implemented in partnership with the NGOs who helped in the formation of the SHGs, provide training and monitor them. The NGOs are

65 53 given funds for providing the above services. Interested NGOs are affiliated as partners with the Mahalir Thittam if they satisfy the norms for affiliation. The hallmark of the SHGs promoted by the Mahalir Thittam is the systematic training provided to the SHG members and the office bearers. This capacity building brings about qualitative changes in the attitude of the women and promotes cohesion and effective functioning of the group. In order to bring about synergy and better coordination in the implementation of the SHG programmes, the TNCDW which was under the administrative control of the Social Welfare Department was brought under the administrative control of the Rural Development and Panchayat Raj Department vide G.O.Ms.No.81 Rural Development & Panchayat Raj Department (CGS-II) dated Table III - 1 show the total number of Self Help Groups formed, the total number of women enrolled and their savings both in rural and urban areas of Tamil Nadu as on 31 st March Tamil Nadu Corporation for Women Development Ltd., Op.Cit, pp

66 54 TABLE III 1 Total SHGs Status in Tamil Nadu as on 31 st March 2010 Sl.No. District Groups Formed Total Women Enrolled Savings ( ` in lakhs) 1 Ariyalur Chennai Coimbatore Cuddalore Dharmapuri Dindugal Erode Kancheepuram Kanyakumari Karur Krishnagiri Madurai Nagapattinam Namakkal Nilgris Perambalur Pudukkottai Ramand Salem Sivagangai Thiruvanamalai Tirunelveli Thanjavur Theni Thiruvallur Thiruvarur Thoothukudi Trichy Vellore Villupuram Virudhunagar Total Source: Unpublished Record of Mahalir Thittam Office, Tuticorin- 2010

67 55 SELF HELP GROUPS IN TUTICORIN DISTRICT Thoothukudi District carved out of the erstwhile Tirunelveli District in 1986 has certain rare features. The mixed landscape of the sea and their (waste) lands has imbibed some special traits in the character of the sons of the soil. Valour and devotion with burning patriotism are the watch words of the people here. The story of our country s freedom struggle cannot be complete without mentioning the supreme sacrifices of the illustrious sons of the district like V.O.Chidambaram Pillai who brought the first Swadeshi Ship Galia to the Tuticorin port and Veerapandi Kattabomman who waged a war against the British. The people s poet Subramania Bharathi and the revolutionary Vanchinathan were also the proud sons of the soil. Agriculture is the main stay of Tuticorin district. Agriculture is the main occupation on which 70 per cent of the people depend on it.the main food crop in this district is paddy. Out of the total area of 4,70,724 hectares, 1,78,083 hectares are brought under the cultivation of different crops which is nearly 38 per cent of total area of the district. The important food crops in the district are paddy, cholam, cumbu, ragi, varagu, samai and commercial crops like cotton, chilly, sugarcane and groundnut.

68 56 The district is located in the southern part of Tamil Nadu and surrounded by Virudhunagar District on the North, Western Ghats on the West, Tirunelveli District on the South. The lifeline of the district river Tamiraparani feeds the district and quenches the thirst of the residents of Thoothukudi District too. As per 2001 Census, the total population of Tuticorin District was 15,72,273 which included 8,05,450 (51.22 per cent) women population. There were 16,085 women SHGs and the number of women enrolled under the schemes are 2, 58,630 and they had saved ` lakhs up to March, Twenty one approved NGOs are functioning in this district to form and monitor the SHGs and they are Arumbugal Trust, Action Trust, Amarseva S angam, Aussi Trust, Organsation for Agriculture and Rural Development, Janapriya Trust, Malarchi Trust and Tuticorin Multi Social Service Society. EXISTENCE AND COVERAGE OF SELF HELP GROUPS IN TUTICORIN DISTRICT The Self Help Groups were started in Tuticorin district during The coverage of Self Help Groups organised in Village Panchayats, Town Panchayats, Municipalities and Corporation and the period of existence from 1998 to March 2010 is presented in Table III - 2.

69 57 TABLE III 2 Period of Existence and Coverage of SHGs in Tuticorin District Description Village Panchayats Town Panchayats No. of SHGs up to March 2010 from 1998 to 31 st March 2010 Women covered up to March m Period of Existence of SHGs 6m-1yr 1-2yr 2-3yr 3-4yr Above 4yrs Municipalities Corporation Grand Total Source: Unpublished Record of Mahalir Thittam Office, Tuticorin From Table III - 2, it is found out that the SHGs organized from 1998 to 31 st March 2010 were covering a total number of 2,58,630 women members. It is also inferred that 7243 SHGs (45 per cent) have a service period of 4 years. It is noted that nearly 62.1 per cent of the SHGs are formed in the Village Panchayats. In the Corporation one finds 8.5 per cent of SHGs of the total number.

70 58 TRAINING OF SELF HELP GROUPS At the time of formation of the SHGs, the officials of Mahalir Thittam, the bank officials and the NGOs are giving training to the SHGs. Firstly, the animator and two representatives of each SHGs were given suitable training in the field of organizing and conduct of meeting, collection of savings and subscription, maintenance of books of accounts and the like. The Government is sanctioning the amount towards the cost of training of the members of the SHGs through Mahalir Thittam. The total number of members attended the training and the total amount spent towards training in Tuticorin district for the reference period is given in Table III - 3.

71 59 TABLE III 3 Member Wise Training Cost Incurred for Tuticorin District During to Year No. of SHGs Members Attended the Training Training Cost (` in Lakh) Source: Unpublished Records of Mahalir Thittam Office, Tuticorin LINKAGE BETWEEN BANKS AND SELF HELP GROUPS The National Bank for Agriculture and Rural Development (NABARD) continues to provide 100 per cent refinance to banks at an interest rate of 6.5 per cent per annum. Other support measures provided include facilitating

72 60 training of the bank officials and the field staff of the NGOs, the SHGs, the federations of NGOs and SHGs and other related institutions through financial assistance, faculty support and the like. As many as 550 NGOs are participating in the programme. Women SHGs constituted about 94 per cent of the total groups linked. On the whole, the programmed benefited 5.60 lakh rural poor families in 280 districts. The southern region continues to dominate the linkage programmed with a share of 65 per cent followed by the western (11 per cent), the eastern (11 per cent), the central (10 per cent) and the northern regions (8 per cent). Andhra Pradesh, Karnataka and Tamil Nadu status have taken the lead in promoting the SHGs and in establishing the bank SHGs linkage. The concept of the SHGs has not been as successful in the north east and some of the eastern states. Area specific programmers need to be formulated to meet the varying socio cultural practices. After successful experimentation, Pandian Grameen Bank, Tuticorin (Tamil Nadu), in association with an experienced NGOs and RRBs are involving themselves as SHGs. Some Government agencies like Panchayat Union have also taken initiatives to promote SHGs and such efforts are supported by the NABARD through assistance in organizing training programmes for the staff.

73 61 Notwithstanding 100 per cent refinance from the NABARD, commercial banks perceive this activity as unprofitable. Hence, only regional rural banks and cooperative banks take up such financing. The RBI has been prevailing upon the commercial banks to formulate their respective policies on micro credit and promotion of SHGs. The NABARD has been organizing the SHGs workshops involving bankers and development personnel to accelerate the process of SHG - Bank Linkage. The RBI has issued circular to the commercial banks to reckon micro credit extended directly to individual borrowers or the rough intermediaries as parts of their priority sector lending. The circular also stated that micro credit should form an integral part of the corporate credit plan of the bank and should be received at the biggest level on a quarterly basis. Faced with the poor recovery rates of programmes involved with lending to the poor, the NABARD was searching for alternative strategies among which the Self Help Group concept appeared to be the most promising. The NABARD was willing to persuade the bank to advance loans directly to the groups, anticipating that while repayments will improve, the transaction costs to the banks will decline.

74 62 The Reserve Bank of India issued a circular dated July 24, 1991 to the commercial banks advising them to participate actively in the pilot project for linking Self Help Groups with Banks. The NABARD, after consultations with a few interested banks and voluntary agencies, issued a set of guidelines on February 26, 1992; which, while being adequately comprehensive were kept flexible enough to enable participating banks and field level bankers to innovate and to contribute to strengthening the project concept and strategy. When the pilot project was initiated by the NABARD, the Self Help Group model was adopted and was called as an Indian model. Later, in the early nineties the NABARD called it the SHG Bank Linkage Model. The programme began in 1992 with a two-year pilot project to link 500 SHGs. It was indeed the pilot of the SHG-Bank Linkage Programme, although not of the SHG movement, with which NABARD had already been involved since Without that 1987 investment, the SHG movement would not have had official recognition and ownership. The SHG-Bank Linkage Programme was slow to take off, but has been speeding along since But it grew rapidly over the years reaching 1, 079,091 SHGs in In March 2006 there were about three million SHGs in India. Of these, about 1.6 million are linked to banks.

75 CHAPTER IV ECONOMIC SIGNIFICANCE OF THE MEIGNANAPURAM VILLAGE PANCHAYAT

76 63 CHAPTER - IV ECONOMIC SIGNIFICANCE OF THE MEIGNANAPURAM VILLAGE PANCHAYAT LOCATION Meignanapuram lies in the southern side of Thoothukudi District in Tamil Nadu at about 6 km east of Sattankulam and 11 km south of Nazareth. The nearest railway is Nazareth railway station. It is served by Tuticorin Airport. By road, it is accessible from Tirunelveli (41 km north-west), Tuticorin and Nagercoil. Meignanapuram Village Panchayat having an area of 4.2 sq.km, out of the total area, 70 per cent of land is utilized for agriculture purposes and 30 per cent of land is used for the non agricultural activities. HISTORY OF MEIGNANAPURAM VILLAGE PANCHAYAT Meignanapuram acts as a separate village panchayat from 27 th March It was carved from Semarikulam Village Panchayat. This Panchayat consists of Santhapuram, Manikapuram, Marudurkarai, Govindammalpuram, Chanthayathioor, Rev. John Thomas Nagar and

77 64 Prof. Kersome Dhavaraj Nagar. It belongs to Udangudi Panchayat Union. Earlier days this village is called as Neduvilai is renamed as Meignanapuram. Meignanapuram is better known as an ancient and famous Christian village. This is one of the very few Christian villages in India in 1830 when a few families embraced Christianity the name of the village was changed from Neduvilai to Meignanapuram (the abode of true wisdom). Rev John Thomas of Pembroke in Wales (Great Britain) who took charge of this village congregation in 1837 was the man behind the all-round development of this village. He was a great visionary. While there was only a very few Christian families in Meignanapuram during the middle of the 19 th century, he built a very beautiful and impressive Church in Catholic style big enough to hold 3000 people. The Church is 110 feet long and 55 feet wide, with a steeple in the front soaring into the sky a height of 192 feet. This is one of the biggest Churches with the tallest steeple in India, Lord Napier, the Governor of Madras Presidency who dedicated this Church tower and who in his way a no mean critic or architecture, described this church as a finest attempt he had seen to transplant the splendors of Gothic Architecture into a soil and atmosphere not by any means favourable to it.

78 65 ECONOMIC STATUS OF THE MEIGNANAPURAM VILLAGE PANCHAYAT The Village Panchayat has all rural population, and it is one of the reasons for its backwardness. The percentage of the literates in the Village Panchayat is This is higher than to other nearby Village Panchayats. Agriculture is the main stay of the Village Panchayat. The cultivators and agricultural labourers both together accounts for per cent of the total work force of the Panchayat. Meignanapuram has been identified as the most ideal place for banana cultivation. In Meignanapuram Village Panchayat 20 per cent of the population are working under the various government institutions in around Tamil Nadu. This is due to the increase in the awareness of the people for education. The Panchayat accounts for 11 per cent of the district total area under Banana cultivation. The cultivation of horticultural crops, fruits and a vegetable is in an upward trend, as the local farmers show interest in earning of profits. The large number of existence of Palmyra and Coconut trees in the Panchayat has bright prospects for development of industries based on these to improve the rural economy.

79 [[ 66 BUSINESS FACILITIES AT MEIGNANAPURAM VILLAGE PANCHAYAT There are no big industries in Meignanapuram region. Agricultural activities are given primary importance in this region. With the help of Sadayaneri Canal, some of the western region is utilized for agricultural purposes. Most of the agricultural activities are related to cultivating paddy, coconut and banana. One can see number of palm trees around this village. From the palm tree, people of this area extract toddy and process them to prepare Karuppu Katti which has a demand in other areas of Tamil Nadu. CASTE SYSTEM AND RELIGION Population of Meignanapuram Village Panchayat consisting of different communities like Nadar, Yadavar, Brahmins, Kammalar, Vellalar, Paraiyar, Chakkiliyar, Muslims, Vannar, Navithar etc., Among the total population, Nadar, Yadavar and Paraiyar castes hold significant share. Next to the above said communities come Chakkiliyar and Vannar. Other castes have no significant share in the population. People of Meignanapuram follow different Religions like Hinduism (Saivam, Vainavam), Christianity (Protestant, Catholic) and Islam etc.,

80 67 POPULATION As per 2001 census, the total population of Meignanapuram Village Panchayat is 12,556. The census shows that out of the population of 6,052 are males and 6504 are females. CLIMATE AND TEMPARATURE The climate generally hot and dry in the Meignanapuram Village Panchayat. The climate is very pleasant in rainy and winter seasons (September January), and very hot in summer. As it is only eight kilometer away from the Gulf of Mannar a pleasant wind blows in the evening all around the year. The mean maximum temperature ranges from C to C and the mean minimum temperature varies from C to C. The highest temperature was recorded between the months of May and August and lowest during December and January. TRANSPORT FACILITIES The road connectivity is good in Meignanapuram Village Panchayat. Government buses, private mini buses and private route buses are running through this Panchayat from various places like Chennai, Coimbatore, Bangalore,

81 68 Tirunelveli, Thoothukudi, Tisayanvilai, Sathankulam, Vallior, Nagercoil, Udankudi, Manapad, Kulasekarapatnam and Padukapathu. This study area has 15 tourist vans, 17 tourist cars and 20 auto rickshaw are available for hire for transportation needs and 15 mini load auto, 4 lorries are available for the transport the goods in various purposes. This sector gives employment for 95 persons. BANKING INSTITUTIONS Banking facilities have developed in this study village. Tamilnad Mercantile Bank (Meignanapuram Branch) helps the business community by bank loans. These banks provide ATM (Automatic Teller Machine) facility in Meignanapuram. Majority of the people maintain their saving or current account in this bank. Pandian Grama Bank (Semarikulam Branch) is providing agricultural loan for farmers and gives short term loan for cottage industries in study area. Meignanapuram Primary Co operative Credit Society are providing loan for cottage industries, entrepreneurs and agriculture in study area. Milk producer s society and public distribution shops deposits their income in this bank.

82 69 This financing institution is functioning in very successful manner. So this Village Panchayat is achieving Financial Inclusion. EDUCATIONAL FACILITIES Education is very essential for social development. The people of this village have realized the need of education. Meignanapuram Village Panchayat has three higher secondary schools, six middle schools, nine balwadi centers and one college of education for women are functioning. The educational institutions are running very successfully in study area. The study area has six middle schools cater to the educational needs for more than 450 students every year. These students are first generation learners. Among these six middle schools, 4 schools are Christian minority government aided institution. One school is private English medium institution and the other is government institution. Ambrose Boys Higher Secondary Schools providing education for 700 students per annum. These students are from remote villages as first generation learners. This school built by Christian Missionaries in Elliot Tucks Board Girl s Higher Secondary Schools give educational facilities for only girls and 875 students are learning from this school.

83 70 These students are from under below poverty line families. These schools built by Christian Missionaries in 1941 and this school playing vital role on increase the women of literacy rate in study area. Easther Santham Higher Secondary School provide to education for 250 students. These students are from around Tamil Nadu. This school provide education for only poorest of the poor families students. This school started in 2012 under the management of International Youth Fellowship Christ Trust. Majority of the students are from Dharmaburi, Perambalur and Krishnakiri Districts in Tamil Nadu. All the students are getting free food, free clothing and free lodging from this trust. This school playing an important role on the increase in educational needs of weaker section of the society. Balwadi Schools are providing education under age group of five. These centers are giving nutrition and hygienic food for children. Under this 500 children were benefited and provide nutrition food to pregnant women in the study area. St. John Thomas College of Education for Women providing education for 100 students. This college is functioning in a very successful manner and making opportunity to get higher education for rural women s.

84 71 These schools and colleges are providing employment to 132 teaching staffs and 22 non teaching staffs. WATER FACILITIES People are getting water which is supplied from the Panchayat. It has 9 water tanks which supply drinking water to the village people through 231 street taps and 34 hand pumps. Water is getting from Ground and Tamirabarani River through pipe lines. ELECTRICITY BOARD Meignanapuram Village Panchayat has two electricity board offices which supplies electricity to all the people of study area. The total number of street light is 254 of which 164 is tube light, 84 is sodium light and 6 high mass light. Tamil Nadu Electricity Board Sub Station is situated in Meignanapuram. This sub - station provides employment for 18 workers under the contract and 12 labours are working as the permanent. COMMUNICATION Telephone Exchange office is available in Meignanapuram. This office provides 286 land line telephone connections for study area and gives employment to 5 workers.

85 72 Mobile communication play a major role in study area and majority of the peoples are using only mobile phones, the following mobile operator Aircel, Airtel, Vodafone, TATA Docomo, Reliance, BSNL and Idea Cellular provide their services in successful manner. GOVERNMENT VETENARY HOSPITAL Government Animal Husbandry and Vetenary Hospital is situated in this Village Panchayat. Majority of the villagers having animals for using agricultural purposes and their business. This hospital gives health assistance for animals in these villages. This hospital provides employment for 5 workers. MEDICAL FACILITIES This village has a Government Primary Health Center. This Center is functioning 24 hours. This center gives good health assistance for the people. Two private hospitals are functioning in the study area. Government Primary Health Center gives employment for 2 Doctors, 3 Staff Nurses, 11 Village Health Nurses, 2 Community Health Nurses, 4 Office Assistants, 2 Pharmacist, 2 Lab technicians and 2 Ambulance drivers.

86 73 TEMPLES Meignanapuram Village Panchayat has eight temples. The most famous celebration is Aadi and Thai temple festivals. The people of this village celebrate Dasara for ten days every year. LIBRARY FACILITIES There are two libraries in our study area. It is useful for children and adults. One library is functioning under the Department of School Education and Department of District Library Committee and other one library are maintained by Village Panchayat. Meignanapuram Panchayat has allotted decent amount for maintenance of library. Those libraries are very useful for competitive expand preparation students. Students are proper utilizing books and journals in these libraries. PUBLIC DISTRIBUTION SHOP Four Public Distribution Shops are available in the study area. This Village Panchayat people are getting goods from routine day order. Majority of the people are purchasing from this Public Distribution Shop at a lower price.

87 74 MARKET FACILITIES Common markets are available in Meignanapuram. This Village Panchayat people are purchasing goods from this market. This market consist fifteen merchants shops, two fish shops, two medical shops, two jewelers, three mobile shops, two fertilizer shop, ten small hotels, nine tailor shop, three stationary shop, four fruits shops, three browsing centers, nine barber shops, two electrical shop, eleven tea shops, four vegetable shops and two textiles are available to fulfill the needs of the people. These markets are providing larger number of unorganised sector employment opportunity to Meignanapuram Village Panchayat peoples.

88 CHAPTER V AN ASSESSMENT OF SELP HELP GROUPS IN THE MEIGNANAPURAM VILLAGE PANCHAYAT

89 75 CHAPTER - V AN ASSESSMENT OF SELP HELP GROUPS IN THE MEIGNANAPURAM VILLAGE PANCHAYAT AGE-WISE CLASSIFICATION Composition of age group is an important factor which determines the earning of economic units. For this purpose the composition of age of the members has been analysed. TABLE V - 1 AGE GROUP Sl. No. Age No. of respondents Percentage 1 Below Above Total Source: Survey. Majority of the respondents belong to the age group of (44.8 per cent), 22.4 per cent of the respondents belong to the age group of and per cent of the respondents belonging to age

90 76 group of below 25 and 4.5 per cent of the respondents were of the age group of above 55. FIGURE V - 1 AGE GROUP Percentage Below Above 55 Age Group

91 77 CASTE Caste is an important social factor in our society, which has a lot of socio-economic and political implications. Hence, caste - wise distribution of SHGs members was considered important for this study. Well-recognized community groups like Scheduled Caste, Most Backward Caste, Backward Caste and Forward Caste were listed and analysed for this purpose. TABLE V - 2 CASTE Sl. No. Community No. of respondents Percentage 1 Forward Caste Backward Caste Most Backward Caste Scheduled Caste Total Source : Survey. Among the respondents, 98.5 per cent of the SHGs members were from the castes other than the higher castes. Over 50.7 per cent members belonged to Backward Community, about 32.8 per cent to Scheduled Caste and only 14.9 per cent from the Most Backward Community. The Scheduled Castes consist

92 78 mainly of the Adi Dravida, Chakkiliyan, Chamar, Pallan, Palluvan, Samban and Paravan whereas the Nadar and Yadhava are main Backward Caste and Vannar, Kurumba, Padayachi and Maravars are Most Backward Caste. Scheduled Castes and the Backward Castes consist larger chunk of the members of the Self Help Groups in the study area. TABLE V - 3 RELIGION Religious sentiments play an important role in the determination of life style. Religion wise classification of respondents is presented in table V 3. Sl. No. Religion No. of respondents Percentage 1 Hindu Christian Total Source: Survey. Out of 67 respondents, 68.7 per cent of the respondents belong to Hindu religion, 31.3 per cent of the respondents are Christians. Hinduism and Christianity are popular religious faiths present in the study area, Christians have one third and Hindus have two third of the respondents among the members of Self Help Groups.

93 79 EDUCATION Education is the most important factor that shapes the individual pursuit of his career. Most of the beneficiaries were educationally at low level. TABLE V - 4 LEVELS OF EDUCATION Sl. No. Level of Education No. of respondents Percentage 1 Primary Secondary Higher Secondary Diploma / ITI Graduate Total Source: Survey. The table showed that 64.2 per cent women respondents have studied up to primary level per cent of them have studied up to secondary level, 9 per cent of the respondents have studied up to degree level and 7.5 per cent of the respondents have completed higher secondary level. Only 1.5 per cent of the respondents have studied professional courses. Another significant aspect of the level of education in the study area is there were no illiterates.

94 80 Among the 67 respondents majority of the respondents have studied up to only primary level. Low level of education is one of the social factor helps penile for the part of SHGs in the study area. FIGURE V - 2 LEVELS OF EDUCATION 8% 2% 9% 18% 63% Primary Secondary Higher Secondary Diploma / ITI Graduate

95 81 TABLE V - 5 MARITAL STATUS Sl. No. Marital Status No. of respondents Percentage 1 Married Widow Total Source: Survey. The level of income has the effect of changing the economic status of the families of respondents. The table depicts that most of the respondents are married. It represents 86.6 per cent. Only 13.4 per cent of the respondents are widow.

96 82 FAMILY SIZE The size of family is an important factor which determines the income, expenditure and social status of the households. If the size of the family is large their income and expenditure increase accordingly. The distribution of household on the basis of the family size in the study area is depicted in the Table V 7. TABLE V 6 FAMILY SIZE Sl. No. Family Size No. of respondents Percentage 1 Less than Total Source: Survey. Among the respondents, 56.7 per cent of the respondents have the family size of less than 4 members and 40.3 per cent of the respondents have the family size of 4 to 6 members. 3 per cent of the family has 7 to 9 members. Population Control Policy is very effective in rural and urban areas. This is the outcome of the average size of the family is less than 4 members.

97 83 TABLE V - 7 TYPES OF FAMILY Sl. No. Types of Family No. of respondents Percentage 1 Joint Family Nuclear Family Total Source: Survey. Majority of the respondents were found living in nuclear families which is 88.1 per cent. Only 11.9 per cent of the respondents opined that they were following joint family system.

98 84 TYPE OF HOUSE Indira Awas Yojana (IAY) is a central scheme that allotted 40 per cent of the house for free marginalized labourers, scheduled caste and below poverty line rural people. Tamil Nadu government has given free houses under the scheme of Kalinagar Housing Scheme now name changed in Pasumai Veetu Thitam with Solar Energy. Main objective of the scheme is to abolish the all hut houses in Tamilnadu. TABLE V - 8 TYPE OF HOUSE Sl. No. Type of House No. of respondents Percentage 1 Hut Tiled Terraced Group House Total Source: Survey. Among the respondents, 65.7 per cent of the respondents are living in Tiled houses, 13.4 per cent of the respondents were living in the group house built by the

99 85 various central and state government schemes. Only 11.9 per cent of the SHGs respondents lived in Terraced houses and 9 per cent of the respondents lived in Hut houses. TABLE V - 9 OWNERSHIP OF HOUSE Sl. No. Ownership of House No. of respondents Percentage 1 Own House Rental House Total Source: Survey. Majority of the respondents were living in own houses. It is 88.1 per cent and 11.9 per cent of the respondents were living in rental house.

100 86 TABLE V - 10 AMENITIES AVAILABLE IN SHGs MEMBERS S RESIDENTS Sl. No. Facilities in Resident Have Don t have Total 1 Water Connection 63 (94.0) 2 Electricity Connection 67 (100) 3 Toilet Facility 59 (88.1) Source: Survey. * Figures given in brackets indicate percentage (6.0) (100) - 67 (100) (11.9) (100) Majority of SHGs members have drinking water connection in their house, remaining 6 per cent who were not having water connection in their houses depend street pipes. In those people are getting drinking water are from government pipe or public wells. Electricity connection is provided with all houses in the study area. In our study area 11.9 per cent of the respondents do not have toilet facility at their houses, 88.1 per cent of the respondents have toilet facility at their houses.

101 87 TABLE V - 11 COOKING FACILITIES IN HOUSE Sl. No. Type of Fuel No. of respondents Percentage 1 Gas Kerosene Oil Fire Wood Total Source: Survey. Among the respondents, 89.6 per cent of the respondents use Gas as fuel for cooking while 6 per cent of the respondents use kerosene oil as fuel for cooking purposes. 4.4 per cent of the respondents use firewood for cooking purposes.

102 88 TABLE V - 12 EMPLOYMENT OF RESPONDENTS Sl. No. Category No. of respondents Percentage 1 Self employed Wage earners House Wife Total Source: Survey. Among the respondents, 6 per cent of the SHGs member engaged in self employment, 47.8 per cent of the respondents were wage earners. The wage earners are both labourers and coolies. These types of respondents are in large numbers in the study area per cent of the SHGs members were home makers.

103 89 TABLE V - 13 DECISION MAKING IN SHGs MEMBER S FAMILY Sl. No. Decision Maker No. of respondents Percentage 1 Yourself Husband Both of them Total Source: Survey. Women s participation in decision-making in families is an important indicator for measuring their empowerment per cent SHGs members reported that decisions were being taken by their spouses. However, more than one third respondents opined that they do participate in decision-making process per cent of the respondent took decision on their own, 9 per cent of the respondents households have the practice of taking decisions jointly. Thus, the socio-economic conditions of members of women SHGs have demonstrated that their status had improved since their joining of SHGs and availing micro-finance.

104 90 TABLE V - 14 GROUP WISE MEMBERSHIP Sl. No. SHG Name No. of respondents Percentage 1 Vaigai Mallikai Aruloolzhi Kaleswari Thangam Jaihind Mutharamman Total Source: Survey. In our study area14.9 per cent of members were from Vaigai, Aruloozhi, Kaleswari, Thangam and Jaihind Self Help Groups per cent of the members are Mallikai Self Help Group and 11.9 per cent of the members are in association with Mutharamman Self Help Group. From the data we have collected, it is clear that the people representing different communities are members of SHGs in the study area. After the formation of these groups, there is no quarrel between the residents and the study area is free from communal disharmony.

105 91 TABLE V - 15 YEAR WISE MEMBERSHIP Sl. No. Year of joining No. of respondents Percentage Total Source: Survey. Among the respondents, 44.8 per cent of the respondents became the members of Self Help Group in the year per cent members got membership in 2009 and 26.9 per cent members joined in 2010.

106 92 TABLE V - 16 MOTIVATION TO JOIN GROUP Sl. No. Motivation to join SHGs No. of respondents Percentage 1 Yourself Family Members Friends NGOs Members Total Source: Survey. Opinion of the SHGs members were sought as to who motivated them to become members of SHGs. Majority of the respondents, 40.2 per cent reported that family members motivated them. Equal number of respondents was of the view that (25.4 per cent) re ply on their own interest and encouragement from their friends made them to join SHGs. 9 per cent of the members reported that NGOs workers or facilitators motive them to join SHGs.

107 93 TABLE V 17 POSITIONS HELD BY MEMBERS Sl. No. Designation No. of respondents Percentage 1 President Secretary Treasurer Member Total Source: Survey. Among the SHGs members, 73.1 per cent were ordinary members in SHGs while 10.4 percent served as President and another 9 per cent served as Secretaries of the Self Help Groups. 7.5 per cent of the respondents have served as Treasurer of the SHGs in the study area. Most of the members do not have sound educational background, which served as a barrier for the members to assume responsibilities.

108 94 FIGURE V 3 POSITIONS HELD BY MEMBERS Percentage President Secretary Treasurer Member Designation

109 95 FREQUENCY OF GROUP MEETING Regular meetings are very important, especially at the initial stages of the establishment of SHGs. The Self Help Groups would decide on a fixed date, time and place for the meetings. This would ensure that its women remain committed to the group and would be able to plan in advance. TABLE V 18 FREQUENCY OF GROUP MEETING Sl. No. Frequency of Meeting No. of respondents Percentage 1 Weekly Fortnightly Total Source: Survey. More than 76.1 per cent respondents reported that meetings of SHGs are held once in a week and 23.9 per cent respondents were of the view that meetings were conducted once in two weeks.

110 96 TABLE V 19 DECIDING MEETING AGENDA Sl. No. Deciding meeting agenda No. of respondents Percentage 1 Majority of the members Some member Group members & NGO members Total Source: Survey. The agenda of the SHGs meetings were normally decided by most of the group members ( 50.7 per cent). Importantly, group members and link workers of NGOs also decide the agenda of meetings ( 4.5 per cent) and minimum number of group members decide the agenda of meetings (44.8 per cent). Participation of the majority of the members in the decision regarding the agenda of the meetings is praise worthy.

111 97 TABLE V 20 AWARENESS AND KNOWLEDGE OF SHGs ACTIVITIES Sl. No. Awareness and Knowledge of SHGs Activities Aware 1 Meetings Calendar 57 (85.1) 2 Rules and Regulations 22 (32.8) 3 Information in Group Records 36 (53.7) 4 Cash in Hand 34 (50.7) 5 Balance in Bank 32 (47.8) 6 Total Loaning of Group 26 (38.8) 7 Numbers of members taken loan 20 (29.9) 8 Numbers of members repaid loan 12 (17.9) 9 Objectives of Group 55 Source: Survey. * Figures given in brackets indicate percentage. (82.1) Non Aware 10 (14.9) 45 (67.2) 31 (46.3) 33 (49.3) 35 (52.2) 41 (61.2) 47 (70.1) 55 (82.1) 12 (17.9) Total 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100)

112 98 Knowledge and awareness regarding SHGs activities are shown in Table V 20. Parameters like meetings calendar (85.1 per cent), objectives of group (82.1 per cent), information in group records (53.7 per cent), cash in hand (50.7 per cent) and balance in bank (47.8 per cent) were well known to the majority of the members of the group. However members awareness about, numbers of members who repaid loan (17.9 per cent), rules and regulation (32.8 per cent), numbers of members who have taken loans (29.9 per cent) and total loaning of group (38.8 per cent) were very low. INCOME Income is an important variable in the household economy. It determines the level of education, volume of assets and status of health etc. Every household wants to maximize their income. The chances of earning attractive income motivate to the respondents to join the Self Help Groups. In this study the main sources of income of the respondents before and after joining Self Help Groups were taken up for analysis.

113 99 TABLE V - 21 LEVEL OF INCOME OF THE MEMBERS OF SHGs (per month) Before joining SHGs After joining SHGs Sl. No. Income Level No. of Respondents Percentage No. of Respondents Percentage 1 Below ` ` ` ` ` ` ` ` ` Above ` Total Source: Survey. Before becoming as members in the SHGs 28.4 per cent of the households have an income below ` 4000 as income whereas 31.4 per cent of the respondents received the lowest income between ` 4001 and ` per cent of the respondents were in receipt of ` ` 8000 and 13.4 per cent of the respondents were with the income of ` ` and 11.9 per cent of the respondents earned above `

114 100 After joining SHGs, the level of income had changed considerably per cent of the respondents received an income below ` 4000 per month, 37.4 per cent of the respondents received the income level between ` ` 6000 and 16.4 per cent of the respondents earned the income level between ` ` Only 6 per cent of the respondents earned an income amount between ` ` and 13.4 per cent of the members earned above ` Average income of before joining SHGs was ` per month. It improved to ` after joining SHGs. So it is concluded that after becoming the members in the SHGs, their income had increased considerably.

115 101 COEFFICIENT OF VARIATION Coefficient of Variation is a statistical device which is used to explain the extent of variability. Coefficient of Variation developed by Karl Pearson is the most commonly used measure of variation. It is used in such problems where we want to compare the variability of two or more than two series. That series (or group) for which the coefficient of variation is greater is said to be more variable or conversely less consistent, less uniform, less stable or less homogeneous. On the other hand, the series for which Coefficient of Variation is less is said to be less variable or more consistent, more uniform, more stable or more homogeneous. COEFFICIENT OF VARIATION INCOME LEVEL OF THE SHGs MEMBERS (BEFORE AND AFTER JOINING SHGs COMPARISION) The Coefficient of Variation of the income distribution of the members before and after joining SHGs had been calculated and it values were per cent and per cent. The distribution of income of the respondents before joining as members in to Self Help Groups is more inequality distributed among members. However, income level of the members after joining SHGs is more consistent because Coefficient of Variation is less in case of income level of the members after joining SHGs compare to the income level of the members before joining SHGs.

116 102 LORENZ CURVE Lorenz curve is a graphic method of describing variability. This device formulated and adopted by Dr. Max O. Lorenz, a famous economic statistician to describe variability among economic variables. This curve was used by him for the first time to measure the extent of variation in the distribution of wealth and income. Now, this device is used to study the inequality in the distribution of profits, wages, turnover, etc. However, still the most common use of this technique is to study the degree of inequality in the distribution of income and wealth between countries or between different periods of time. It is a cumulative percentage curve in which the percentage of items is combined with the percentage of other things as wealth, profits, turnover, etc.

117 103 FIGURE V - 4 EXTENT OF VARIABILITY IN THE DISTRIBUTION OF INCOME 100 Cumulative percentage of the respondents Cumulative percentage of the income Pre - SHG income Post - SHG income Equality In this diagram the straight line indicates line of equal distribution of income. The far away of the Pre SHGs income line and Post SHGs income line illustrates the extent of variability in the distribution of income. The Post - SHGs income line is closer with the line of equal distribution. This implies that the distribution of income after becoming members of the SHGs has less variability and the inequality in the distribution of income had declined.

118 104 TABLE V - 22 LEVEL OF EXPENDITURE OF THE MEMBERS OF SHGs (per month) Before joining SHGs After joining SHGs Sl. No. Expenditure Level No. of Respondents Percentage No. of Respondents Percentage 1 Below ` ` ` ` ` ` ` ` ` Above ` Total Source: Survey. The main purposes of earning are to satisfy our basic needs. The level of income and expenditure are interrelated to each other. Table V 22 shows that before joining SHGs, 41.8 per cent of the respondents spent an amount below ` 4000 for per month per cent of the respondents spent an amount range between ` ` 6000, 14.9 per cent of the respondents spent an amount between ` ` 8000, 7.5 per cent of the SHGs members were spending

119 105 between ` ` Only 3 per cent and 1.5 per cent of the members spent an amount between ` ` and above ` respectively. After joining Self Help Groups, the level of expenditure had increased considerably. The above table indicates that 20.9 per cent of the respondents spent an amount below ` 4000 per month, each 9 per cent of the respondents spent an amount between ` ` and above ` respectively per cent of the respondents spent an amount between ` ` 6000 and 14.9 per cent of the respondents spent an amount between ` ` Only 4.4 per cent of the respondents spent an amount between ` and ` COEFFICIENT OF VARIATION EXPENDITURE LEVEL OF THE SHGs MEMBERS (BEFORE AND AFTER JOINING SHGs COMPARISION) The Coefficient of Variation of the expenditure distribution of the members before and after joining SHGs had been calculated and it values were per cent and per cent. The distribution of expenditure of the respondents before joining as members in to Self Help Groups is more inequality distribution among members. However, expenditure level of the members after joining SHGs is more consistent because Coefficient of Variation is less in case of expenditure level of the members after joining SHGs compare to the income level of the members before joining SHGs.

120 106 FIGURE V 5 EXTENT OF VARIABILITY IN THE DISTRIBUTION OF EXPENDITURE 100 Cumulative percentage of the responden Cumulative percentage of the expenditure Pre - SHG expenditure Post - SHG expenditure Equality In this diagram the straight line indicates line of equal distribution of expenditure. The far away of the Pre SHGs expenditure line than Post SHGs expenditure line illustrates the extent of variability in the distribution of expenditure. The Post - SHGs expenditure line is closer with the line of equal distribution. This implies that the distribution of expenditure after becoming members of the SHGs has less variability and the inequality in the distribution of expenditure had declined.

121 107 ASSETS Assets are mainly considered by the members of the SHGs as capital to earn income and gradually improve their financial position. In general, they maintain assets in the form of land, buildings, livestock, poultry birds and consumer durables. TABLE V - 23 ASSETS Before joining SHGs After joining SHGs Sl. No. Assets No. of Respondents Percentage No. of Respondents Percentage 1 Below ` 50, ` 50,001 ` 1,50, ` 1,50,001 ` 2,50, Above ` 2,50, Total Source: Survey. Among the members, 44.8 per cent of the households have assets below ` 50,000 before joining SHGs 40.3 per cent of the households have assets worth of less than ` 50,000 after becoming members of the

122 108 Self Help Groups per cent of the members are holding assets between ` 50,001 ` 1,50,000 after becoming members of the SHGs it is 34.3 per cent for before joining groups per cent of the members are holding assets between ` 1,50,001 ` 2,50,000 after becoming members of the SHGs and it was 10.4 per cent of the before joining per cent of the members are holding assets before joining group and it increased to 11.9 per cent after joining SHGs assets of above ` 2,50,000. Asset creation tendency of the respondents increased after joining SHGs. It was found that mean asset before joining SHGs was ` 1,64,000. It s increased to ` 1,96, after joining SHGs SAVINGS Savings is an excess of income over consumption. The income, expenditure and savings are interrelated to each other. Low consumption expenditure with higher income indicates a higher savings potentiality and higher consumption expenditure with lower income indicates lower savings potentiality. The concept of micro credit is based on the principle that the members will develop the habit of thrift before they avail loan. The savings of an individual member not only helps him to avail himself of a loan but also provide an opportunity to promote the availability of micro finance for the other members of the organization.

123 109 TABLE V - 24 SAVINGS (per month) Before joining SHGs After joining SHGs Sl. No. Savings No. of Respondents Percentage No. of Respondents Percentage 1 Below ` ` 201 ` ` 601 ` Above ` Total Source: Survey. 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 ` 200 before joining group and after the group it was 35.8 per cent for savings less than ` per cent of the members have the savings of ` 201 ` 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 ` 601 ` 1000 and it was decreased to 17.9 per cent after joining group.

124 110 FIGURE V - 6 SAVINGS OF THE RESPONDENTS Percentage Below Rs. 200 Rs. 201 Rs. 600 Rs. 601 Rs.1000 Above Rs Amount of Savings series Before 1" joining SHGs After joining SHGs

125 111 TABLE V - 25 SOURCES OF SAVING Sl. No. Savings No. of respondents Percentage 1 Commercial Banks Post Office Co operative Banks / Regional Rural Banks Total Source: Survey. People save their money in various sources such as Banks, Post Office and Co-operatives, etc 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 Meignanapuram Primary Agricultural Cooperative Credit Society. Only 1.5 per cent of the members maintain their savings in Post Office in Meignanapuram, Lakshmipuram and Semarikulam.

126 112 TABLE V 26 PURPOSE OF SAVING Sl. No. Purpose of Savings Yes No Total 1 Food Security 64 (95.5) 2 Education 50 (74.6) 3 Medical 52 (77.6) 4 Festivals 32 (47.8) 5 Marriage 52 (77.6) 6 Purchase of Assets 37 (55.2) 7 To meet Emergencies 15 Source: Survey. * Figures given in brackets indicate percentage. (22.4) 03 (04.5) 17 (25.4) 15 (22.4) 35 (52.2) 15 (22.4) 30 (44.8) 52 (77.6) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) The respondents were asked to reveal the important purpose of savings. The prominent factors reported were food security, education expenses for their children, festivals, marriage expenses of their children, purchase of new assets and meet any type of contingencies.

127 113 Food security (95.5 per cent), Medical expenses (77.6 per cent), Marriage needs (77.6 per cent ) and Education expenses for their children (77.6 per cent) were the order of the purposes of savings in the study area. However purpose of savings regarding members to meet any type emergencies (22.4 per cent), festivals purpose (47.8 per cent) and purchase of new assets (55.2 per cent) has been recorded low.

128 114 TABLE V - 27 AMOUNT OF LOAN IN SHGs MEMBERS Sl. No. Loan Amount No. of respondents Percentage 1 Below ` ` ` ` ` Above ` Total Source: Survey. Among the members, 56.7 per cent borrowed an amount of loan up to ` There were around 13.4 per cent members whose loan was between ` ` There were around 4.5 per cent of the respondents who had loan amount varied between ` ` and only 25.4 per cent of the members had received loans above `

129 115 TABLE V - 28 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 Source: Survey. Among the members, 4.5 per cent of the members borrowed loan for meeting the education expenses for their children, 3 per cent of the respondent opined that they borrowed loan for constructing houses, whereas 4.5 per cent of the respondents borrowed loan for unexpected family medical needs and 9 per cent of the members got loan to repay the old loans per cent of the members borrowed money for both consumption and daily needs while 58.1 per cent of the members for income generating activities like as stat small petty shops, increase the investment on their business and investment on agricultural activities.

130 116 TABLE V 29 LOAN REPAYMENT BY THE RESPONDENTS Sl. No. Repayable the loan No. of respondents Percentage 1 Able to repay Unable to repay Total Source: Survey. Among the members, 74.6 per cent of the members were able to borrow which repay the loans per cent of the members are unable to repay the loan. The reason for inability to repay the loan, members state that no proper income from their business and work.

131 117 TABLE V 30 OPINION ABOUT INTEREST RATE Sl. No. Opinion No. of respondents Percentage 1 High Reasonable Low Total Source: Survey. Among the respondents, 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 very high. From this table we can come to conclusion that, the interest rate fixed by these groups is low. So almost all the members say that the interest rate is reasonable. This is the rate in which the people clearly repay the amount at time.

132 118 ENROLLEMENT OF TRAINING Proper training is a basic one enables the members of SHGs to be financially literate. For this, periodical training is imparted to the members by government, NGOs and educational institutions. TABLE V 31 DETAILS OF THE TRAINING PROGRAMME Sl. No. Training Programme No. of respondents Percentage 1 Entrepreneurship Block Level Community Programme Panchayat Development Programme Total Source: Survey. Among the members, 44.8 per cent of the respondents have attended training programme related to self employment per cent of the members have attended training programme for block level community programme and only 26.9 per cent of the members attended panchayat level development programme.

133 119 DETAILS OF THE TRAINING PROGRAMME Members are given training in making herbal products like soap, herbal oil, preparation of pickles, phenoil, handicrafts, tailoring, pot painting and management related aspects like leadership and book keeping. The members used to participate in rallies like anti dowry system, to environment protection, women empowerment and increase in enrollment on schools. TABLE V 32 IMPARTING OF TRAINING Sl. No. Imparting of Training No. of respondents Percentage 1 NGO Activities Government Officials Universities / College Total Source: Survey. The effectiveness of training had been reported significantly in most of the cases. Majority of the respondents revealed that training and orientation programmes were very useful to them. The training was mainly provided by NGOs activists ( 95.5 per cent), Universities / Colleges (1.5 per cent) and Government Officials (3 per cent). The training to SHGs members is mainly imparted by NGOs workers and facilitators.

134 120 IMPACT OF TRAINING SHGs members attended various training like onsite training, orientation programme and workshops conducted by various organizations, rallies to increase the social awareness, skill development programme and marketing knowledge seminars. SHGs members gained knowledge and awareness of various incomes generating programme the various training programmes. To ascertain the preference of this respondent on training, we used modal value to find the most preference rank. TABLE V 33 IMPACT OF TRAINING Sl. No. Impact of training Rank 1 Confidence Building 6 2 Skill Development 1 3 Marketing Linkages 3 4 Bank Linkages 3 5 Knowledge on rights, entitlements of development programme 3 6 Management efficiency for micro enterprise development 8 7 Enhanced income and earnings 7 8 Active participation decision making in family 7 Source: Survey.

135 121 Table V 33 shows that 1 st preference for skill development and favour 3 rd rank for marketing linkages, bank linkages and knowledge on entitlements of development programme. Self Help Groups members are of the opinion that 6 th rank for confidence building. 7 th rank for enhanced income and earnings and 8 th rank for management efficiency for micro enterprise development. These results show that the training programme were useful to the members.

136 122 TABLE V 34 CHANGES ON SOCIO ECONOMIC STATUS AFTER JOINING SHGs Sl. No. Changes on Socio Economic status after joining SHGs 1 Recognition in Family 65 (97.0) 2 Recognition in Community 15 (22.4) 3 Interaction with outsides 19 (28.4) 4 Literacy and Education 44 (65.7) 5 Access to health services 24 (35.8) 6 Access to sanitation facility 20 (29.9) 7 Access to credit sources 16 (23.9) 8 Family Income 21 (31.3) 9 Voicing your concern 45 (67.2) 10 Nutrition Awareness 52 (77.6) 11 Family planning awareness 14 (20.9) 12 Girl child development awareness 59 (88.1) 13 Decision making related to child centered 13 (19.4) 14 Decision making related to money centered 10 (14.9) 15 Access to credit resources 05 (07.5) Source: Survey. * Figures given in brackets indicate percentage. Increased Same Total 02 (03.0) 52 (77.6) 48 (71.6) 23 (34.3) 43 (64.2) 47 (70.1) 51 (76.1) 46 (68.7) 22 (32.8) 15 (22.4) 53 (79.1) 08 (11.9) 54 (80.6) 57 (85.1) 62 (92.5) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100) 67 (100)

137 123 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 were 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), interaction with outsides (71.6 per cent) and access to sanitation facility (70.1 per cent). These status remain the same in among SHGs members in our study area.

138 124 TABLE V 35 PERFORMANCE OF SELF HELP GROUPS Sl. No. Performance No. of respondents Percentage 1 Good Satisfactory Poor - - Total Source: Survey. Among the respondents, 20.9 per cent of the respondents have felt that functions of Self Help Groups were satisfactory and 79.1 per cent of the respondents felt that the functions of their Self Help Groups were 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.

139 125 TABLE V 36 PROBLEMS IN SELF HELP GROUPS Sl. No. Suggestions No. of respondents Percentage 1 Lack of co-ordination Lack of finance Lack of awareness Lack of family support No problem Total Source: Survey. In our study area, 9 per cent of the respondents replied that they don t have any problems in the SHGs per cent of the respondents reported were lack of awareness about various schemes and 41.8 per cent of the respondents felt that lack of finance is another main problem confronted in the Self Help Groups per cent of the respondents face lack of coordination among members and 13.4 per cent of the members were of the opinion that they do not get the family support.

140 126 TABLE V 37 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 Source: Survey. Most of the respondents, i.e per cent suggested for improvement in credit facility per cent of the members 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 were of the view that it needs planning and 11.9 per cent of the members suggested for reduction in the interest rate, chargeable on the finance obtained profits SHGs.

141 CHAPTER - VI SUMMARY OF CONCLUSIONS AND SUGGECTIONS

142 127 CHAPTER - VI SUMMARY OF CONCLUSIONS AND SUGGESTIONS This chapter deals with the conclusions emerged from this entire study. The main conclusions of the study are presented below. 1. The study observed that 44.8 per cent of Self Help Group members belong to the age group of 35 years to 45 years. 2. SHGs members from Backward Caste (50.7 per cent) and S chedule Caste (32.8 per cent). It shows that 98.5 per cent of the members are from castes other than higher castes. It means the Scheduled Castes and Backward Castes major chunk of the study area. 3. It is observed that 68.7 per cent of the respondents belong to Hindu religion, 31.3 per cent of the respondents are followed Christians. 4. The study reveals that most of the respondents (64.2 per cent) have studied up to primary school education. 5. The analysis show that 86.6 per cent of the respondents are married and 13.4 per cent of the respondents are widow. 6. The study revealed that 88.1 per cent of the respondents belonged to nuclear family.

143 7. Regarding the family size 56.7 per cent of the SHGs members having less than 4 members It was found that 88.1 per cent SHGs members are living in own houses and 11.9 per cent of the members living in rental houses. 9. The study observed that 65.7 per cent of the SHGs members are living in tiled houses and 9 per cent of the members are living in huts. 10. It was found that 94 per cent of the respondents have water connection in their houses. 6 per cent of the respondents do not have water connection in their houses. 11. All the respondents have electricity connection in their houses. 12. The study revealed that 88.1 per cent of the respondents have toilet facility at their houses. 13. Regarding the cooking device 89.6 per cent of the SHGs members are use Liquid Petroleum Gas (LPG) for cooking purposes. 14. The study found that 46.3 per cent of the respondents were home makers per cent of the respondents are wage earners. 15. The study revealed that 76.1 per cent of the SHGs members reported that decisions were being taken by their spouses.

144 16. The study showed that equal numbers of the respondents were of the view that they joined SHGs (25.4 per cent) on their own interest and encouragement from their friends It was found that 73.1 per cent are ordinary members in Self Help Groups. Only 10.4 per cent of the members served President of the groups. 18. The study revealed that 76.1 per cent of the respondents reported that meetings of Self Help Groups are held once in a week and 23.9 per cent of the respondents groups conducted meetings once in two weeks. 19. The study showed that 50.7 per cent respondents reported agenda of the Self Help Groups meetings were normally decided by most of the group members. 20. The Income pattern of SHGs members shows that before joining SHGs 28.4 per cent of the respondents received the lowest income of below ` 4000 for per month. After joining SHGs, the level of income had changed considerably per cent of the members received the income level of ` ` 6000 for per month.

145 21. Average income of before joining SHGs was ` for per month. It improved to ` after joining SHGs The expenditure pattern of the SHGs members shows that before joining SHGs 41.8 per cent of the members spent an amount below ` 4000 for per month. After joining SHGs, the level of expenditure had enhanced significantly per cent of the members spent an amount between ` ` Expenditure of the respondents had increased after joining SHGs. Average expenditure of before joining SHGs was ` It improved to ` after joining SHGs. 24. Asset creation tendency of the respondents increased after joining SHGs. It was found that mean asset before joining SHGs was ` It increased to ` after joining SHGs.

146 25. The savings pattern of SHGs members shows that before joining SHGs 41.8 per cent of the respondents have savings less than ` 200 for per month and 22.4 per cent of the members have saving of ` ` 600 for per month. After joining SHGs, the level of savings had changed considerably per cent of the members have savings of ` ` 600 for per month All the SHGs members have savings habits per cent of the members save their income in commercial banks and 41.8 per cent of the respondents maintain their savings in co operative banks or regional rural banks. 27. Main purpose of savings is meant for food security, medical needs, marriage expenses of their children and education expenses for their children. 28. All the respondents borrowed from the Self Help Groups per cent of the SHGs members borrowed an amount of loan up to ` It is found that 58.2 per cent of the members borrowed loan for income generating activities like petty shops, increase the investment on their business and investment on agriculture.

147 30. The study revealed that 74.6 per cent of the SHGs members were able to repay their loans and 25.4 per cent of the respondents are unable to repay the loan. The reason for inability to repay the loan is irregular and inadequate income from their business and work Regarding interest rate, 50.7 percent of the members opined that the interest rate was reasonable. 32. All the respondents attended any one of the training programme or orientation for capacity building. Training was imparted by NGOs (95.5 per cent) who act as resource persons. The training programmes had a positive impact on skill development, marketing linkages, bank linkages, knowledge on rights, entitlements of development programme and confidence building etc. 33. Socio - Economic status of the respondents had increased in the form of family recognition, literacy and education on becoming members of Self Help Groups. 34. The study found that 79.1 per cent of the members felt that the functions of their Self Help Groups were good. 35. The study revealed that 41.8 per cent of the respondents felt that lack of finance is the main problem confronted in the Self Help Groups.

148 133 SUGGESTIONS The following suggestions are made on a pragmatic basis and with a view to provide a new base-line of action. 1. There is need to accept that women s needs are not only for self-employment. The Programmes should be designed on the basis of the needs of women at the micro level. Planning for self-employment for women needs a multipronged strategy. 2. Proper monitoring of groups needs to be done at various stages of their growth. Strengthening and Group monitoring methods including selection of leader, homogeneity of Group members, etc. need to be developed. 3. Group activity needs to be encouraged in the interest of building up of strong SHGs. Selection of the leader needs to be done carefully. 4. Training needs to be imparted in a systematic manner, covering groups according to some schedule or roster. As trainings are different kinds i.e. basic leadership and vocational, it is essential to draw up a plan according to the specific requirements of each group. The training programmes should be organized in nearby places which are convenient to the members.

149 5. Should provide subsidy loan for Agriculture Women SHGs for innovative projects Should provide self employment loan for individual SHGs members. 7. Loan repayment should be flexible based on their varying levels of income and savings. 8. The SHGs linkages show that majority of them have been linked to banks and NGOs but there is need to increase the SHGs access to the supply chain, linkages to markets and appropriate technologies. 9. The training or skill up gradation of 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. 10. The SHGs by encouraging members to take up income generating activities have helped in increasing the employment opportunities. Hence, encouragement and support by the government to establish SHGs will certainly solve the problem of rural unemployment. 11. The government department should make budgetary allocation for training components for the Self Help Group members.

150 135 CONCLUSION Self Help Groups is an important tool which helps the rural women to acquire power for their self supportive life and nation building efforts. The empowerment of women through Self Help Groups would lead benefits not only to the individual women but also for the family and community as whole through collective action for development these Self Help Groups have collection action. Empowering women is not just for meeting their economic needs but also more holistic social development. The Self Help Groups 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.

151 BIBLIOGRAPHY

152 BIBLIOGRAPHY BOOKS 1. Abba P. Lerner, Economics of Employment, McGraw-Hill Book Company, Tokyo, Agarwal, A.N, Indian Economy: Problems of Development and Planning, New Age International Publishers, New Delhi, Bird C. Barbara, Women Employees and Rural Development, Gain Publishing House, New Delhi, Chapman, Economic Independence for Women The Foundation for Equal Right, Sage Publication India Pvt. Ltd., New Delhi, Gadgil, D.R, Women workforce in India, Asia Publishing House, Bombay, Gupta S.P, Statistical Methods, Sultan Chand and Sons, New Delhi, Karmakar, K.G, Rural Credit and Self-Help Groups: Micro finance Needs and Concepts in India, Sage Publications India Pvt. Ltd., New Delhi, Kothari C.R, Research Methodology: Methods and Techniques, New Age International Publishers, New Delhi, Puhazendhi and Satyasai, Micro Finance for Rural People: An Impact Evaluation, National Bank for Agriculture and Rural Development, Publication Division, Mumbai, i

153 10. Ravilochanan, Research Methodology with Business Correspondence and Report Writing, Margham Publications, Chennai, Reddy C.S, SHGs Federations in India, APMAS Publishers, Hydrabad, Ruddar Datt and Sundaram K.P.M, Indian Economy, S. Chand and Company Limited, New Delhi, Shrivastava and Abha Avasthi, Modernity, Feminism and Women Empowerment, Rawat Publication, Jaipur, REPORTS 1. Government of India, A Report on the Success and Failure of SHGs in India Implementations and Paradiagram of Success, Planning Commission, New Delhi, Government of India, Status of Micro Finance in India, National Bank for Agriculture and Rural Development, Mumbai, Government of Tamil Nadu, Credit Guidelines for Self Help Groups: Hand Book, Tamil Nadu Corporation for Development of Women Ltd., Chennai, Government of Tamil Nadu, District Statistical Hand Book: Thoothukudi District, Assistant Director of Statistics, Department of Statistics and Planning Implementations, Thoothukudi, Government of Tamil Nadu, Policy Note: , Department of Rural Development and Panchayat Raj, Chennai, Government of Tamil Nadu, Vazhndhu Kaatuvom Tamil Nadu Empowerment and Poverty Reduction Project, Department of Rural Development and Panchayat Raj, Chennai, ii

154 JOURNALS 1. Angappapillai, Performance of Self Help Groups: A Micro Study, Southern Economist, Vol. 10, No. 10, January Anitha and Ashok, Micro Credit through Self Help Groups for Rural Development, Southern Economist, Vol. 50, No. 12, August Arul Kamaraj, Self Help Groups New Mantra for Empowerment, Kurukshetra, Vol. 45, No. 6, December Carolyn Barnes and Ericak Cog, The Impact of Zaimbuka s Micro Enterprise Programme in Zimbabwe: Baseline Findings, Kurukshetra, Vol.51, No.13, May Churchill, Micro Credit Programme in South Africa A Case Study, Kurukshetra, Vol. 51, No.10, August Dwarakanath, Rural credit and women Self-Help Groups: A profile of Ranga Reddy District in Andhra Pradesh, Kurukshetra, Vol. 51, No.1, November Galab and Chandrasekhara Rao, Women s Self-Help Groups, Poverty Alleviation and Empowerment, Economic and Political Weekly, Vol. 38, No. 11, March Ghorude, Micro Finance for Financial Inclusion and Sustainable Rural Development, Southern Economist, Vol. 39, No.4, June Gurumoorthy T.R, SHGs-Economic Empowerment through Self - Reliance, Social Welfare, Vol. 49, No. 7, October iii

155 10. Hema, A Study on the Socio Economic Conditions of SHGs Cattle Rearers of Musiri Taluk, Southern Economist, Vol. 49, No. 20, February Jay Anand, Micro Finance in Kerala, Kurukshetra, Vol.48, No.11, August Jebastine, Promotion of Woman Entrepreneurs through Self Help Groups, Kurukshetra, Vol.53, No.8, November Kavitha and Nagaraj, Women Empowerment through SHG A Case Study, Southern Economist, Vol.50, No. 9, September Karmakar, Self Help Groups in Orissa: Some Conceptual Issues, Kurukshetra, Vol. 59, No.01, November Kumaran, Self Help Groups and Micro Credit Synergic Integration, Kurukshetra, Vol. 51, No.10, August Lakshmi Ramanathan, Socio Economic impact of Linkage with Banks in SHGs, Journal of Political Economy, Vol. 7, No. 5, April Leelamma Devasia and Jancy Antony, Social Development issues in SHGs, Social Welfare, Vol. 50, No. 10, January Manimekalai, Nature and Performance of Informal Self Help Groups - A Case from Tamil Nadu, Indian Journal of Agricultural Economics, Vol. 56, No. 3, April Manimekalai and Rajeswari, Empowerment of Women through Self Help Groups, Yojana, Vol. 32, No. 04, July Mayandi and Govindarajan, Problems and Prospects of SHGs in Theni District Southern Economist, Vol. 50, No. 8, August iv

156 21. Mehrotra, Linkage Banking State Bank s Experience, State Bank of India Monthly Review, Vol. 36, No. 02, February Mishra et.al., A Study on the Working and Impact of Dharmadevi Mahila Mandal : A Rural Self Help Group in Kalahandi District of Orissa, Indian Journal of Agricultural Economics, Vol. 56, No. 3, July Mohanan, Micro Credit and Empowerment of Women Role of NGOs, Yojana, Vol.44, No.2, February Moin Quasi, Self Help Groups A Novel Approach to Rural Development, Social Welfare, Vol.50, No. 10, January Nagabhushana Rao and Geetanjali, Performance of SHGs in Srikakulam District in Andhra Pradesh, Southern Economist, Vol. 49, No. 20, February Nagayya and Kotewara Rao, Micro Finance and support organization in the Southern States in India, Journal of Rural Development, Vol. 28, No. 01, April Nanda, Linking Banks and Self Help Groups in India and the Role of NGOs: Lessons Learned and Future Perspectives Southern Economist, Vol. 37, No. 22, May Punithavathy Pandian and Eswaran, Empowerment of Women through Micro Credit, Yojana, Vol. 22, No. 13, November Rao et. al., Women Self Help Groups Profiles from Andhra Pradesh and Karnataka, Kurukshetra, Vol.5, No.6, April Rathkrishnan, Role and Performance of SHGs leaders, Social Welfare, Vol. 20, No. 11, January v

157 31. Rittu Jain and Kushawaha, Socio Economic impact through Self Help Groups, Yojana, Vol. 47, No. 7, November Ruby et.al., Women empowerment; Meaning, Characteristic and Dimensions, Southern Economist, Vol. 46, No. 9, May Sharma, Forest Policy Role of Self Help Groups, Southern Economist, Vol. 16, No. 6, March Sheik Mohammed, Self Help Groups for the success of women Entrepreneurs, Kisan World, Vol. 56, No. 10, March Smita G. Sabhlok, Self Help as a Strategy for Women s Development in India, Social Welfare, Vol. 50, No.12, March Soundarapandian, Micro Finance for Rural Entrepreneurs Issues and Strategies, Kurukshetra, Vol. XIII, No.4, December Subah Singh Yadav, Self Help Groups Movement in Rajasthan Bright Prospects, Kurukshetra, Vol. 32, No.04, October Sundar and Asokan, Regional Variation Performance of Self Help Groups, Social Welfare, Vol. 50, No.10, January Sundari et.al., Poverty Credit and Micro Enterprises, Kurukshetra, Vol. 49, No. 2, November Sunderraj, Self Help Groups and Women Empowerment, Social Welfare, Vol. 50, No. 10, March Surekha Rao, Self Help Group in Tirupathi, Andra Pradesh, Social Welfare, Vol.52, No. 5, August Suriakanthi, Literacy Essential for Self Help Groups, Social Welfare, Vol.47, No. 05, September vi

158 43. Talekar, Micro Credit Management by Women s SHGs in India, Economic and Political Weekly, Vol. XIX, No. 19, April Tamilselvi and Ratha Krishnan, Role and Performance of SHGs leaders in Tamil Nadu, Social Welfare, Vol. 50, No. 10, January Tharabai et.al., Micro Credit and Social Capitalism in Rural Tamil Nadu, Social Welfare, Vol. 50, No. 10, January Venkateshamurthy and Dinesh, SHGs and Employment of Women: A Case Study, Southern Economist, Vol. 49, No. 18, January Vinayagamoorthy, Women Empowerment through Self Help Groups A case study in the North Tamil Nadu, Social Welfare, Vol. 53, No.12, April vii

159 APPENDICES