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CHAPTER III

REVIEW OF LITERATURE

3.1 Introduction

3.2 Studies relevant to present study

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CHAPTER III

REVIEW OF LITERATURE

3.1 Introduction:

The researcher has conducted literature survey on Micro finance, Self Help

Groups and Self Help Groups’ Bank linkage Programme. The survey includes the

literature of books, journals, working papers, Research works, dissertation and projects.

The survey gives a strong base for the study, besides identifying the research gap

between the work executed earlier and the present work undertaken.

Lalitha Shivakumar (1995) 1 pointed out that the small savings by rural

women can generate the requisite resources which can wean the people away from the

exploitation of moneylenders savings depend on habits and voluntary savings

constitute the key for economic progress. It has also been proved that the poor people

can save substantially through group efforts. Promotion of Self Help Groups have the

potential to bring women into the mainstream of economic development paving the

way for sustainable development.

Karl (1995)2 studied the role of SHGs of women on decision-making and

concluded empowerment as a multifaceted process, involving the pooling of resources

to achieve collective strength and countervailing power and entailing and the

improvement of manual and technical skills, administrative, managerial and planning

capacities and analytical reflective abilities of local women.

Dodkey (1999)3 explaining that Self-Help Groups are now gaining acceptance,

as an alternative system of credit delivery, for meeting the credit needs especially to the

people who are the poorest of poor generally comprising small marginal farmers.

Landless agricultural labourers, rural artisans, womenfolk and other micro

entrepreneurs. The SHGs are regarded as a support system to the exiting banking

1 N. Lalitha Shivakumar, ‘Self-Help Groups’, Social Welfare, July 1995, Vol. 42, No. 4, p. 9.

2 Karl Marilee, Women and Empowerment Participation and Decision making, Zed Books Ltd.,

London, 1995.

3 M. D. Dokey, ‘Sustaining rural women’, Social World, March 1999, Vol. 45, No. 12, p. 19.

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operations. The objectives of the SHG is to inculcate the habit of thrift, savings,

banking culture, i.e., availing loan and repaying the same over a given economic

prosperity through credit. The principles underlying the SHG model in India are almost

identical to Bangladesh concept, i.e., financing the poorest of the poor, ensuring

excellent recovery level and empowering women not just by meeting their needs for

consumption and productive loans but also through more holistic educative

programmes on issues such as sanitation, family planning and the evil effect of liquor

consumption in the family

Sivasubramanian (1999)4 in his study had stressed the elimination of poverty

as one of the principle objectives of Indian development strategy. In 1993, the below

poverty line was 36 per cent. The BPL data which worked out of 320 million people,

224 million live in rural areas. The incidence of poverty had declined from 54.9 per cent

in 1973-74 to 36 per cent in 1993-94. The salient features of antipoverty programmes

are framed under various schemes to bring growth. In 1999, the reformed scheme of

Swarnajayanthi Gram SwarozgarYojana (SGSY) would be centered on the concept of

SHGs and cluster approach for reaching out the poor as an effective vehicle. Poverty

can be attentively eradicated only when the poor start contributing to the growth

process through a process of social mobilization, participatory approach and

empowerment of the poor4

Rajeswari and Sumangala (1999)5 explored the problems and prospects in

women entrepreneurship and stated that women entrepreneurship enables to pool the

small capital resources and skills available with women. It paves the way for fuller

utilization of capital and also mobilizes the female human potential.

Gurumoorthy (2000)6pointed out that women’s participation play a significant

role in rural employment activities. The self-help would concentrate on all round

development of the beneficiaries and their village as a whole. The groups would

undertake the responsibility of delivering non-credit service such as literacy, health and

4 M. N. Sivasubramanian, ‘Creditbased poverty alleviation programme innovative approach’,

Kurushetra, November 1999, Vol. 48, No. 2, p. 37.

5 M. Rajeswari and P. Sumangala, Women, Entrepreneurs A Scan on their problems and Prospects in

Women Entrepreneurship: Issues and Strategies, Kanishka Publishers, New Delhi, 1999.

6 T. R. Gurumoorthy, ‘SelfHelp Groups Empower Rural Women’, Kurukshetra, February 2000, Vol.

48, No. 5, p. 36.

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environmental issues. The concept of Self-Help Group would mold women as

responsible citizens of the country for achieving social and economic status. It has also

proved that it would bring on the mindset of the conservative and tradition bound

illiterate women in rural areas.

Kamath (2000)7Observed that unemployment is a major malady faced by the

rural youth in our country. To motivate and facilitate unemployed youth to take up

self-employment, bank has established nine self-employment training institutes in the

southern state, under the aegis of its trust. These institutes have been established

keeping in view the national priorities. The number of women who have been benefited

from the bank’s financial assistance so far is an impressive six lakh plus with an

outstanding of Rs.1216 crores. The bank totally assisted 6754 groups of which 5304 are

women group. These women group are backing a silent revolution in the rural areas

ushering in social and economic empowerment.

Suman Krishnan Kant (2001) 8 opined that the process of women’s

empowerment is multidimensional. It enables women to realize their full potential and

empowers them in all spheres of life. In India, women form a significant part of the

labour force. However, their contribution remains invisible and unrecognized. Women

account for 90 per cent of labour force in the informal sector, which is neither captured

in the country’s population census nor accounted in the National Accounts. The

productive capacities of women, who constitute almost half of the population, remain

unaccounted, thus, reinforcing their subordinate roles. It is estimated that nearly 1300

million persons in the world are poor and nearly two per cent of them are women.

Today as many as 30 to 35 per cent rural households are women headed and their low

incomes make them vulnerable to the extremes of poverty and its consequences.

Veluraj (2001) 9 The Nobel Scholar and Indian Economist AmartyaSen

expressed in his words, “Unless women are empowered.Issues like literacy, health and

population explosion will remain unresolved problems of the developing countries.” In

7 R. J. Kamath, ‘Rural Development Activities’, Southern Economist, November, 2000, Vol. 39, No.

14, p. 19.

8 Sunman Krishna Kant, ‘Women’s Empowerment and Mutual Cooperation in the Family’, Social

Welfare, April 2001, Vol. 48, No. 12, p. 3.

9 R. Veluraj, ‘SHGs an alternative approach to empower rural women’, Tamil Nadu Journal of

Cooperation, June 2001, Vol. 1, No. 8, p. 18.

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India, the majority of the women still continue to perform their traditional roles in the

household and in agriculture. Women are the wives of men, the present scenario forces

them to depend on men. Representation of women has never gone beyond eight per cent

in parliament, 10 per cent in the State Assemblies, 13 per cent in senior management

and administrative posts of government and hence there is no equal opportunity.

SnchLata Tandom(2001)10Self-Help Groups are encouraged to come together

as co-operative societies at the village and mandal level by federating them under the

mutually aided Cooperative Society Act (1995). These societies will be accessing credit

from financial institutions, donor agencies, District Rural Development Agency

(DRDA) and voluntary organisations and help the women members of the Self-Help

Groups in availing bigger loans for economic activities as well as help in collective

bargaining in the marketing of products, purchasing of raw materials etc. Due to this

massive self-help movement, there is a perceptible improvement in the socioeconomic

status of the rural women.

Patel (2001) 11 welcomed that the announcement of National Agricultural

Policy recently by the Government of India and signing the agreement on agriculture

with the World Trade Organisation. He stressed that a focused attention needs to be

given to restructure the rural credit system along with integrating agricultural research,

extension and education system, building rural infrastructure and making government

officials responsive to the emerging needs of farm sector development. It is against this

background an attempt is made here to appreciate the present status of the rural credit

structure in respect of credit disbursal, recovery performance and building up on

non-performing assets, declining trend in the flow of credit and other issues of serious

concern

Ghosh (2001)12 pointed out that combating poverty cannot be managed by the

government alone. There are many areas where government needs collaboration and

co-operation from NGOs particularly in creating opportunity facilitating empowerment

and providing security to the poor. The pressure of the donor agencies on the recipient

10 SnchLata Tandom, ‘Self-Help New Mantra for Empowerment’, Social World, October 2001, Vol. 48,

No. 23, p. 30.

11 A. R. Patel, ‘Rural Credit System’, Kurukshetra, January 2001, Vol. 49, No. 4, p. 17.

12 D. K. Ghosh, ‘NGO intervention in poverty alleviation’, Kurukshetra, March 2001, Vol. 49, No. 6,p.

2.

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government to work through NGOs in development programme is also a dominant

factor in increasing the role of NGOs to fight against poverty.

BinaAgarwal (2001)13 Said that the secure and effective land rights are of

critical importance for women’s welfare and empowerment. But achieving this will

need concerted efforts by gender progressive NGOs, especially women’s groups, as

well as by those within the government who are concerned about women’s

empowerment, poverty and equitable development.

Subramanian (2001)14Pointed out that the NGOs are useful in organizing

Self-Help Groups and in capacity building and in developing access to the institutions

and resources of the State. However, officials were suspicious of the role of NGOs who

were perceived as undermining their power. When NGOs were allowed to implement

government projects there was too much bureaucratic meddling. The long list to do and

dont’s of government procedure accord ill with NGO thinking and approach. In the

recently restructured self-employment programme in the form of the Swarna Jayanthi

Gram Swarojgar Yojana (SGSY), group schemes through the formation of SHGs have

been overwhelmingly preferred. However, in none of the North Eastern States BPL lists

are ready to organize households into SHGs to implement the programme.

Ojha (2001)15 Self-Help Group model of self-employment generation seems to

be a workable model. However, there will be need for utmost care in promotion of

Self-Help Groups. Self-Help Promotion consists of assisting individuals to join

together and setup an organisation promoting their individual and collective skills and

opportunities to develop their own. Self-help promotion aims at generating self

sustainable growth processes within the course of which the target group makes its own

decision.

DipendrtaBanarjee (2001) 16 Given the most acceptable definition of

microfinance. It is the provision of thrift credits, other financial services and products

of very small amount to the poor in rural, semi-urban and urban areas to enable them to

raise their income levels and improve the standard of living. The microfinance service,

13 Bina Agarwal, ‘Land Rights and Gender Equity’, Yojana, August 2001, Vol. 45, p. 35.

14 S. Subramanian, ‘Rural Development and Tribal Aspirations in Tripura’, Kurukshetra, January 2001,

Vol. 49, No. 4, p. 22.

15 R. K. Ojha, ‘SelfHelp Groups and Rural Employment’, Yojana, May 2001, Vol. 45, p. 20.

16 DipendraBanarjee, ‘Microfinancing’, Southern Economist, February 2001, Vol. 39, No. 20, p. 19.

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unlike direct credit to weaker sections, and loan under SGSY banking institution have a

discretion to determine the interest on microcredit. The importance of microcredit in

financial markets is progressively gaining universal acceptance as an effective tool to

eradicate poverty and unemployment prevailing in developing countries. It helps to

provide credit for dispossessed people to build business and empowerment occurs

when these people witness effort and outcome. The Central Bank has left the

application of interest rate to loan extended to microcredit organisation or by the

microcredit organisation to Self-Help Groups / member of beneficiaries to the

discretion of the bank with only stipulation.

The Ministry of Human Resource Development (2001)17Pointed out that in

order to enhance women’s access to credit for consumption and production, the

establishment of new, and strengthening of existing microcredit mechanisms and

microfinance institution will be undertaken so that the outreach of credit is enhanced.

Other supportive measures would be taken to ensure adequate flow of credit to financial

institutions and banks, so that all women below poverty line have easy access to credit.

Vijay Kulkarni (2000)18has described in his article “Empowerment of Women

through Self Help Groups” the difference between women who have become part of

SHGs and those who are not members of the SHGs from the same village.

Empowerment has taken place across caste/class. It has also helped to some extent to go

beyond caste politics and to bring them together as women.

Barik and Vannan (2001)19in their work “Promoting Self Help Groups as a

Subsystem of Credit Cooperatives” have stated that SHGs can be developed as a

subsystem to primary agricultural cooperatives societies at village level. They have

seen that by and large SHGs have been linked with commercial banks in the rural areas.

However, the linkage with the cooperative credit system is proverbially poor. As such

the need of the hour is to make an earnest effort to bring about effective linkage with the

cooperatives.

17 Report of Department of Women and Child Development, Ministry of Human Resource

Development, ‘Economic Empowerment of Women’, Yojana, August 2001, Vol. 45, p. 69.

18 Vijay D Kulkarni, ‘Empowerment of Women through Self Help Groups’, Ashwatha, Oct 2000 Jun

2001, Vol. 1, No. 4, pp. 3236.

19 B. B. Barik and P. P. Vannan, ‘Promoting Self Help Groups as Sub System of Credit Cooperatives’,

The Cooperator, January 2001, Vol. 38, No.7. pp. 305311.

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Ojha (2001)20in his article “Self Help Groups and Rural Employment” has

expressed that the self-Help group model of self-employment generation seems to be a

workable model. However, there will be need for utmost care in promotion of self

-Help groups. He has also mentioned that there are number of possible routes to the

promotion of self-employment and strengthening self-help groups is one of them.

Mani Singh (2001)21has explained in his article “Self-Help Groups: Some

Organizational Aspects” that the organizational functions are motivation, meeting,

adoption of a fixed area of operation, monthly meeting, fixation and collection of

monthly thrift, maintenance of books of accounts, formulation of rules and regulations,

increase in membership and framing of policies programmes follow cooperative norms.

He has also revealed that the social functions are providing education, knowledge and

information, providing idea of consumer protection and environment protection,

preventing harmful diseases, eradication of poverty, and linkage with other agencies for

socially useful activities.

Joshi (2002)22 observed that microcredit programmer extends small loans to

poor people for self-employment projects that generate income, allowing them to care

for themselves and their families. In most cases, microcredit programmer offers a

combination of services and resources to their clients in addition to credit for

self-employment. These often include savings, training networking and peer support. It

is an irony that microenterprises and the contribution to the economy often remains

unorganized. Poor women usually run their own individual economic activities very

efficiently because of sheer survival pressure on them. But public support for the

economy is usually absent so it is very difficult for poor women to improve their

economic situation individually and alone. When interventions are made to strengthen

women’s economic activities, it is very important to credit the positive policy linkages

for access to raw materials, markets, skills, space, credit, equipment etc. without this

policy support, the most efficiently managed economic activities find it difficult to

generate more income for poor women.

20 R. Ojha, ‘Self Help Groups and Rural Employment’, Yojana, May 2001, Vol. 45, pp. 2023.

21 C. H. Mani Singh, ‘Self Help Groups – Some Organizational Aspects’, The Cooperator, May 2001,

Vol. 38, No. 11, pp. 49799.

22 S. C. Joshi, ‘Microcredit not charity’, Social Welfare, February 2002, Vol. 48, No. 32, p. 12.

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Archana Sinha (2002)23observes that the SHGs are informal groups where

members come together toward collective action for a common cause. The common

need here is meeting their emergent economic needs without being dependent on

outside help. The main objectives of SHG is to inculcate the habit of thrift, savings,

banking culture, that is, availing the loan and repaying the same over a given period of

time and in the process, gain economic prosperity through credit. Hence, Self-Help

Groups and microcredit should be seen as one of the components of a solution to

accelerate the socioeconomic development particularly of the rural poor women in

India. A judicious mix of microcredit along with other activities with emphasis on

development and empowerment strategies and processes would certainly make

microcredit an effective instrument of social and economic development particularly of

the women in a holistic and integrated manner.

Suguna (2002)24 The empowerment of women covers both an individual and

collective transformation. It strengthens their innate ability through acquiring

knowledge, power, experience and ideology. This develops their ability to interact and

communicate with each other. Thus bringing about integrated development of women.

To conclude, it may be said that through this collective action with the ideology of

empowerment, SHG are fast emerging as women movement throughout the nation

especially in Andhra Pradesh where 50 per cent of such SHGs in the country are

formed.

Alakananda Mookerjee (2002) 25 the first step towards complete

empowerment is the generation of a source of regular income and hence Self-Help

Groups were created. In January 1999, two SHGs for women belonging to the general

category namely Lakshmi BachatSamuk and Ambika Bachat Samuh were setup.

Inspired by their phenomenal success, the Scheduled Tribe women established one

more SHG the following year Durga Bachat Samuh. Their combined membership now

stands at 59. Initially each member was required to make a monthly savings of 100 and

deposit it in a collective fund. Over the past three years, the SHGs have managed to

save well over 2 lakh. They were keen to invest their savings in a profitable venture.

23 Archana Singh, ‘Types of SHGs and their work’, Social Welfare, February 2002, Vol.48, No.11, p.15.

24 B. Suguna, ‘SelfHelp Groups’, Vikasini, October 2002, Vol. 17, No. 4, p. 11.

25 Alakananda Mookerjee, ‘Ruralwomen draw Shakti from setting up dairy cooperatives’,

Vikasini, January 2002, Vol. 17, No. 1, p. 37.

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The formation of SHG therefore, converted a traditionally gender neutral activity into a

source of livelihood for village women. So, in the second step, attention was focused on

building their capacity for loan repayment and enhancing their decision making ability.

Rao (2002)26 pointed out that the genesis and development of SHGs in India

reveals that the existing formal financial institutions have failed to provide finances to

landless, marginalized and disadvantaged groups. The origin of SHGs could be traced

to mutual aid in Indian village community. Cooperatives are formal bodies whereas

SHGs are informal SHGs encourage savings and promote income generating activities

through small loans. The experiences available in the country and elsewhere suggest

that SHGs are sustainable have reliability, stimulate savings and in the process help

borrowers to come out of vicious circle of poverty.

Preethi Chandrasekar (2002)27 examined that the Self-Help Groups of rural

women, promoted by the Mahalir Thittam are steadily reaping fruits of economic

independence through their savings. The Karuppayurani branch of the Indian Bank was

the latest to distribute household articles worth 5 lakh to 64 women under the Gramin

Mahalir Sowbhagya Scheme. Mahalir Thittam aims to achieve four key aspects to

empower rural women, especially those living below the poverty line economic, social,

educational and political of these economic empowerment was the crucial as it would

bring about the other three aspects. The five year entrepreneurship development

programme trains SHGs to be self-sufficient and resourceful in running their business.

Lalitha (2002)28 examined that the Self Help Groups and Bank linkage project

being implemented under the guidance of NABARD which gives an institutional set up

for micro entrepreneurs. This linkage programme is a part of microfinance operations

emphasizing a savings based credit programme, flexibility in lending, operations,

delinking credit from the bondage of collateral requirements, group leading intergroup

learning, group decision in fixing repayment schedule, skill development through

training and promotion of backward and forward linkage facilities through NGOs. The

net working among the banks, NGOs and women borrowers can open new vistas in

26 V. M. Rao, ‘Women Self Help Groups Profiles from Andhra Pradesh and Karnataka’, Kurushetra,

April 2002, Vol. 50, No. 6, p. 26.

27 Preethi Chandrasekar, Mahalir Thittam upgrades SHGs, Hindu Publication, November 18, 2002, p. 5.

28 N. Lalitha Sivakumar, ‘Self-Help Groups’, Social Welfare, July 2002, Vol. 42, No. 4, p. 9.

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building a new microcredit structure lending to sustainable development. Women

development co-operation and Government departments also engage the services of

NGOs for mobilizing women under their schemes on the development of

microenterprises. The effective partnership between reputed NGOs and banks for

promotion of Self-Help Groups will provide a strong institutional base for a credit plus

approach to microenterprises of women.

Lalitha and Nagarajan (2002) 29 empowerment literally means ‘becoming

powerful’. Empowerment of rural poor demands that members of village committees

should have their own organisation, which will serve their own economic needs and

interest exclusively. Moreover sufficient knowledge about the needs and problems of

rural poor has not been supplied to the policy making agencies. If SHGs are promoted,

the group members can articulate the problems in a better manner.

Bharat Dogra (2002)30has presented in his article “Women Self Help Groups”

that almost all these women are from poor families, mostly from dalits and backward

classes; while the increase in income is important, it is not the only aspect of these

SHGs which is emphasized. Several existing problems of villages and ways of

overcoming them are also discussed. It is important for the long term success of Self

Help Groups that loans should be returned promptly.

Prem Singh Dahiya et al. (2002) 31 have described in their article

‘Socioeconomic upliftment through Self Help Groups in Solan District of Himachal

Pradesh’ that the success or the efficiency of micro finance interventions can be

understood at three levels mainly (i) outreach and financial sustainability of the

programme, (ii) income or poverty impact on the users, and (iii) development of

financial market at the local level. The economic impact is measured in terms of

increase in annual incremental income. All SHGs recorded increase in income, overall

is 94.3%. They have also pointed out that various parameters are used to measure the

maturity of the households. These are (i) homogeneity, (ii) feeling of relevance of

29 N. Lalitha and B. S. Nagarajan. Self-Help Group in Rural Development, XII Edition, Himalaya

Publications, New Delhi, 2002, p.78.

30 Bharat Dogra, ‘Women Self Help Groups’, Kurukshetra, March 2002, Vol. 50, No.5, pp. 4042.

31 Prem Singh Dahiya, N. K. Pandey and Anshuman Karol, ‘Socio Economic Upliftment through

Self-Help Groups in Solan District of Himachal Pradesh’, Journal of Agricultural Development and

Policy, JanJun 2002, Vol. 14, No. 1, pp. 1018.

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group formation, (iii) awareness about objectives of groups, (iv) participation and

frequency of meetings, (v) regularity of savings, (vi) repayment of loans and (vii) group

participation in financial transactions.

Jaswant Singh (2003) 32 says that Self-Help Group and bank linkage

programme being propagated by NABARD, for the last ten years has been recognized

as the largest and fastest growing microfinance programme in the world. Our

expectations of providing bank credit to 1.25 lakh SHGs during the current year have

been surpassed once again, and by January 2003, bank credit of `598 crore has already

been provided to about 25 lakh poor families through 1.50 lakh new SHGs. The

programme has also set in motion the process of women empowerment. However, the

spread of the programme across the country has been uneven and has largely remained

confined to a few States. He urges all states to vigorously join in their endeavour to

make the SHG bank linkage programme a widespread success.

Rajamohan (2003)33 points out that the SHGs is a medium for the development

of savings habit among the women fold. It mobilizes a large quantum of resources. It is

a window for better technology and skill up gradation. It helps to increase an income of

the family. In SHGs collective action and solitarily are important empowering

mechanisms.

Rajeshwari (2003)34explains that a bank branch finances directly to SHG by

opening the loan accounts in the name of SHG. Bank loan is disbursed in the ratio of

savings in the common fund of SHG. The maximum permissible ratio between savings

in the common fund and bank loan is from 1.1 to 1.4. The bank branch finances SHG,

which is formed at the instance of an NGO, but the responsibility of repayment solely

lies with SHG. The bank achieves better and wider coverage of weaker sections in rural

areas in a cost effective manner by mobilizing deposits from the savings of SHG

members.

32 Jawant Singh, ‘200304 Budget Speech on Union Minister of Finance and Company Affairs’,

Southern Economist, March 2003, Vol. 41, No. 22, p. 16.

33 S. Rajamohan, ‘Activities of Self-Help Groups in Virudhunagar District: A study’, Tamil Nadu

Journal of Cooperation, April 2003, Vol. 3, No. 6, p. 15.

34 V. Rajeshwari, ‘New Generation Cooperatives through Self-Help Groups’, Tamil Nadu Journal of

Corporation (TNJC), August, 2003, Vol. 10, No. 10, p. 14.

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Sivaramakrishnan (2003)35explains that the Swarajayanti Gram Swarozgar

Yojana (SGSY) aims at establishing a large number of microenterprises in the rural

areas, building upon the potential of the rural poor. The objective under SGSY is to

bring every assisted family above the poverty line in three years. Towards this end

SGSY is conceived as a holistic programme of microenterprises covering all aspects of

self-employment, viz. organisation of the rural poor into Self-Help Groups and their

capacity building, planning of activity clusters, infrastructure build up, technology,

credit and marketing.

Om Raj Singh (2003)36has indicated in his article ‘Role of NGOs in fostering

Self Help Groups’ that most of the SHGs have come up due to the dynamic leadership

of certain individuals within a group or through the catalytic role played by the NGOs

in developing such groups. One such NGO is the MYREDA (Mysore Resettlement and

Development Agency) whose mission is building of people’s institutions. The building

of appropriate people’s institutions to manage and control resources is an essential

component for sustainability and for the confidence and self reliance which is necessary

to cope with external threats. He has also pointed out that the focus on institution

building goes against the prevalent culture of patronage where benefits flow to

individuals with the right contracts. MYRADA has over 1006 groups of women with

the focus on women’s rights and access to and control of resources which they require

to ensure a sustainable livelihood.

PrasantSarangi (2003)37has mentioned in his article ‘Self Help Groups” that

the SHGs in our country have become a source of inspiration for women welfare. He

has also highlighted that nowadays, formation of SHG is a viable alternative to achieve

the objectives of rural development and to get community participation in all rural

development programmes. SHG is also a viable organized set up to disburse micro

credit to the rural women and to encourage them to enter into entrepreneurial activities.

35 K. Sivaramakrishnan, ‘Poverty All Eviction through Self-Help Groups’, TNJC, March 2003, Vol. 3,

No. 5, p. 9.

36 Om Raj Singh, ‘Role of NGOs in fostering Self-Help Groups’, Kurukshetra, Feb 2003, Vol. 51. No.4,

pp. 3335.

37 PrasantSrangi, ‘Self Help Groups’, Kurukshetra, Feb 2003, Vol. 51, No.4, pp. 3032.

61

Jerinabi (2003) 38 in her work “A study on micro credit management by

women’s Self-Help Group has analyzed the impact of micro credit on SHG members in

improving their economic status in Coimbatore district of Tamil Nadu.

Chiranjeevulu (2003)39in his article “Empowerment of Women Through Self

Help Groups “has revealed that the multipronged strategy including local marketing to

export has been contemplated. The product will be thoroughly popularized among all

the SHGs in the district and channels for distribution of product to all the strategic

marketing locations will be developed. He has also highlighted that network with other

marketing enterprises of SHG women in neighboring districts will be established.

Consumption points under the control of government like hostels and devasthanams

would be approached for bulk orders. Product will also be marketed through PDS and

Gruhamithra supply channels.

Sivaramakrishnan (2003)40has disclosed in his article ‘Poverty Alleviation

Through Self Help Groups’ that the poverty levels have reduced from 56.44% of

India’s population in 1973-74 to 37.27% in 1993-94. The IX Five Year Plan document

envisages reducing rural poverty in the country from a level of 30.55% (208 million)

during 1996 to 9.64% (73 million) by 2006 and further to 4.31% (35 million) by 2011.

He has also mentioned that organization of the rural poor into Self Help Groups is one

of the ways to reduce the poverty.

Raghavendra (2003)41in his article “Self Help Groups Linkage Banking –

Challenges of Training – Role played by National Centre” says that the training has a

vital role to play in the scaling up of the linkage programme. A major challenge faced

by NABARD,SIDBI and banks is meeting the training needs of various players in the

programme such as SHG members, functionaries of NGO, government and banks who

should be exposed to different types and levels of training and awareness programmes.

38 V. Jerinabi, ‘A Study on Micro Credit Management by Women Self Help Groups’, Ph. D. Thesis,

Bharathiar University, Coimbatore, 2003.

39 T. Chiranjeevulu, ‘Empowering Women through Self Help Groups’, Kurukshetra, Mar 2003, Vol. 51,

No. 5, pp. 1619.

40 K. Sivaramakrishnan, ‘Poverty Alleviation Through Self-Help Groups’, Cooperation, March 2003,

Vol. 3, No. 5, pp. 814.

41 K. Raghavendra, ‘Self-Help Group Linkage Banking: Challenges of Training Role played by

National Centre’, Land Bank Journal, March 2003, Vol. 41, No. 4, pp.7176.

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Rajamohan (2003) 42 in his article “Activities of Self Help Groups in

Virudhnagar District – A Study” has specified that according to a recent survey, 18

lakhs families out of 41 lakhs families are below the poverty line in the State of

Tamilnadu, and they have been covered by the SHGs. He has also indicated that the

programme was launched in 1998 and the total savings with 1.06 lakhs SHGs were

Rs.150 crore.

Villi (2003) 43 has highlighted in his article “Self Help Groups – Micro

Enterprises (Some Issues, Challenges, Alternatives)” That rural micro enterprises play

a vital role in areas like promoting and generating avenues for rural employment,

utilization of local rural resources, skills development, promotion of rural

entrepreneurship, mitigating regional imbalance, reducing rural urban disparity,

arresting migration of rural labour to urban centers and creating capital assets in the

rural areas itself.

Rajeshwari (2003)44in her article ‘New Generation Co-operatives through

SHGs’ has described the models of financing SHG. In model I, the bank branch

finances directly the SHG by opening the loan account in the name of SHG. In model II

the bank branch finances SHG which is formed at the instance of NGO. The maximum

permissible ratio between savings in the common fund and bank credit is 1:4 for

concerned NGO which acts as facilitator, but the responsibility of repayment solely lies

with SHG. In model III the local bank branch does not have adequate confidence in

lending to SHG promoted by NGO or in SHG itself for various reasons and is not

willing to be linked directly with the SHG; the bank finances such SHG through the

agency that promotes the group. The NGO may act as a financial intermediary and is

responsible for loan repayment.

Sabyasachi Das (2003)45has explained in his article “Self Help Groups and

Micro Credit Synergic Integration” that the inability of the credit institutions to deal

42 S. Raja Mohan, ‘Activities of Self-Help Groups in Virudhunagar District: A Study’, Cooperation,

April 2003, Vol. 3, No. 6, pp. 1517.

43 C. Villi, ‘Self Help Groups: Micro Enterprises (Some Issues, Challenges, Alternatives)’,

Cooperation, July 2003, Vol. 3, No. 9, pp. 2024.

44 V. Rajeshwari, ‘New Generation Cooperatives through Self Help Groups’, Cooperation, August

2003, Vol. 3, No. 10, pp. 1418.

45 Sabyasachi Das, ‘Self Help Groups and Micro Credit Synergic Integration’, Kurukshetra, August

2003, Vol. 51, No. 10, pp. 2530.

63

with the credit requirements of the poor effectively has led to the emergence of

microfinance or microcredit system as an alternative credit system for the poor. He has

also mentioned that in rural India, it can be seen that the poorer sections of the society

and destitute cannot avail the credit from banks and other formal institutions due to

their inability to deposit collateral security and mortgage property. At this point of

view, micro financing or group lending is being looked upon as the instrument that can

be considered as the golden stick for poverty alleviation vis-a-vis rural development.

Bhagyalakshmi (2004)46in her study stresses the need for sharpening women’s

empowering strategies to make them effective and results oriented. She pointed out that

money earned by poor women is more likely to be spent on the basic needs of life than

that by men and that this realization would bring women as the focus of development

efforts. She also examines the advantages of organizing women groups thereby creating

a new sense of dignity and confidence to tackle their problems with a sense of solidarity

and to work together for the cause of economic independence.

Loganathan (2004)47has disclosed in his article ‘SHGs and Bank Linkages’ the

three basic groups of banks which are involved in SHGs linkage with banks. They are

the commercial banks, the regional rural banks and the cooperative banks. 48

commercial banks, 192 regional rural banks and 264 co-operative banks are associated

with SHG and Bank Linkage Programme. This programme is in operation over 523

districts across the nation. Average loan disbursement per SHG as micro finance by

commercial banks was Rs. 31,836 and the same by RRBs was Rs 26,220 and by

cooperative banks was Rs.21,703.

Sundar and Asokan (2004)48have expressed in their article ‘Performance of

Cooperative Banks in Financing Women Self Help Groups’ that cooperative banks are

financing Women Development Programmes in terms of self-Help groups. Cooperative

banks in Karnataka State occupy the first position with respect to coverage of more

number of women SHGs in their credit plan, followed by Tamil Nadu, Andhra and

Kerala.

46 S. Bhagyalakshmi, ‘Women’s Empowerment: Miles to Go’, Yojana, August 2004, Vol. 48, pp. 3841.

47 P. Loganathan, ‘SHGs and Bank Linkages’, Kisan World, April 2004, Vol. 31, No. 4, pp. 2426.

48 Sundar and R. Asokan, ‘Performance of Cooperative Banks in Financing Women Self Help Groups’,

Cooperative Perspective, January 2004, Vol. 38, No. 4, pp. 526.

64

Rimjhim Mousumi Das (2004)49in his article “Micro finance through SHGs”

has explained that microfinance through SHGs has become a ladder for the poor to

bring them up not only economically but also socially, mentally and attitudinally. He

has also revealed that micro finance not only deals with the credit part but also deals

with savings and insurance part. The most successful region for micro finance is the

southern part of India.

Nirmala et al. (2004) 50 in their study ‘SHGs for poverty alleviation in

Pondicherry’ have discussed the performance and impact of SHGs on the

empowerment of rural poor women in Pondicherry region. The following are the

objectives examined by the study: (i) to observe the socioeconomic background of the

sample respondents during the survey; (ii) to identify the main determinants of monthly

income of the respondents; and (iii) to examine the benefits and problems experienced

by the SHG sample respondents. Such a study has contributed to an understanding of

the functioning of SHGs in the rural Pondicherry.

Tripatty (2004)51has presented in his article ‘Self Help Groups’ that necessary

training could be provided to the SHG members to create awareness on community

health, traditional and modern agriculture practices, microcredit, veterinary practices

and water resource management, Panchayat Raj and other relevant issues applicable to

the areas concerned. He has also provided that with appropriate mechanisms, various

Ministries/Departments/Organizations can look towards the SHGs for targeting their

programmes, which ultimately would help in improving the quality of life in rural

areas.

Rasheeda Bhagat (2004)52in her work, ‘India Interior’ has expressed that there

has been a sea change in the attitude of men towards women’s groups and micro

finance. She also stated that in the last 10 years, the banker’s attitude has changed

substantially and there is a remarkable difference in the way they look at these womens’

groups. That is a major success of this programme.

49 RinjhimMousuni Das, ‘Micro Finance through SHGs’, Kurukshetra, February 2004, Vol. 52, No. 4,

pp. 4345.

50 V. Nirmala, K. Sham Bhat, and P. Bhuvaneshwari, ‘SHGs for Poverty Alleviation in Pondicherry’,

Journal of Rural Development, June 2004, Vol. 23, No. 2, pp. 203215.

51 K. K. Tripathy, ‘Self Help Groups’, Kurukshetra, June 2004, Vol. 52, No. 8, pp. 4043.

52 RasheedaBhagat, ‘India Interior’, The Hindu, July 16, 2004, p. 4.

65

Shanthi and Dhanalakshmi (2004)53in their article, ‘Case Study of Women’s

Empowerment through SHGs in Gobichettipalayam Block, Erode District’ state that

empowerment is an active, multidimensional process which enables women to realize

their full potential and powers in all spheres of life. Women’s empowerment process

starts with economic empowerment .They have also disclosed that leadership qualities

and active participation in group culture lead to improvement in political acumen which

would in turn strengthen and sustain the overall process of empowerment.

Sanjoy Ray (2004)54 has mentioned in his article Linking Self Help groups

under SGSY scheme with Co-operatives Prospects and Concerns” that the

distinguishing feature between SHGs and Cooperatives is that the latter often tend to be

large sometimes heterogeneous and formal and sometimes lose cohesiveness and

proximity with members in the process of their operations while the former is informal

based on interpersonal relations where decision making, implementation and follow up

become comparatively easy. He has also pointed that the Central Government and State

Government fund the SGSY in the ratio of 3:1.

Kala (2004)55has mentioned in her article ‘Economic Empowerment of Women

through SHGs’ that amongst all the states, Tamil Nadu has the fourth highest

percentage of female headed households in the country. The Tamil Nadu Women

Development Project (TNWDP) taken up for implementation under the name of

‘Mahalir Thittam’ covered about 10 lakhs poor women of the State in the year 1997-98.

Women SHGs share was 78% in March 1998. She has also stated that men SHGs

accounted for 40% or more in only six States, viz. Karnataka, Gujarat, Rajasthan,

Haryana, Madhya Pradesh and Meghalaya.

Anita Panda (2004)56has explained in her article, ‘SHG A Boon for Many’ that

initially the women were assisting the males in the business, but subsequently the

women also came forward to start business independently. She has also revealed that

53 G. Shanthi and C. Dhanalakshmi, ‘Case Study of Women Empowerment through Self Help Groups in

Gobichettipalayam Block, Erode District’, Cooperation, August 2004, Vol. 4, No. 10, pp. 2325.

54 Sanjoy Ray, ‘Linking Self Help Groups under SGSY Scheme with Cooperatives Prospects and

Concerns’, The Cooperator, October 2004, Vol. 42, No. 4, pp. 128131.

55 G. S. Kala, ‘Economic Empowerment of Women through Self Help Groups’, Kisan World,

November 2004, pp. 264266.

56 Anita Panda, ‘SHG: A Boon for Many’, The Cooperator, December Vol. 42, No. 6, pp. 264266.

66

the members utilized the loan in their family business and repaid the due amount in

time.

Sheik Mohamed (2004)57has mentioned in his article, ‘Self Help Groups for the

Success of Women Entrepreneurs’, that women are contributing significantly in

modern business and commercial world in their own way. Working women can be

classified into different categories like women entrepreneurs, highly qualified

professionals, employees in the organized private and public sectors and women

workers in unorganized sector. He has also explained that transforming the prevailing

social discrimination against women must become the top priority and must happen

concurrently with increased direct action to rapidly improve the social and economic

status of women.

Sorubarani and Thenmozhi (2004) 58 in their article, ‘Self Help Groups:

Gateway to Women Empowerment’ have described that the RBI issued instructions to

commercial banks regarding establishment of linkages by them directly with NGOs and

SHGs. They have also disclosed that the basic principles on which SHGs function are

group approach, mutual trust, organization of poor, manageable small groups, group

cohesiveness, demand based lending, collateral free women friendly loan, peer group

pressure in repayment, skill training, capacity building and empowerment.

Senthil Vadivoo and Sekar (2004)59have focused in their article ”Self Help

Group – A Movement for Women Empowerment” that empowering women is not just

for meeting their economic needs but also for more holistic social development. In

SHGs, collective action and solidarity is an important empowering mechanism. They

are of the opinion that by empowerment, women would be able to develop self-esteem,

confidence, realize their potential and enhance their collective bargaining power.

57 M. Sheik Mohammed, ‘Self Help Group for the Success of Women Entrepreneurs’, Kisan World,

March 2004, Vol. 31, No, 3, pp. 3031.

58 P. Sorubarani and G. Thenmozhi, ‘Self Help Groups: Gateway to Women Empowerment’,

Cooperation, December 2004, pp. 1012.

59 K. SenthiVadivoo and V. Sekar, ‘Self Help Groups: A Movement for Women Empowerment’, Kisan

World, July 2004, pp. 1314.

67

Venkatachalam and Jayaprakash (2004)60have described in their article,

‘Self Help Group in Dindigul District’ that the concept of SHG has sown the seeds for a

silent revolution at the village level. It paves way for women to spell out their views and

to participate in the local administration. They have also pointed that more than 80% of

SHGs are established in rural areas and only 5% is located in municipal areas.

Leelavathy (2004)61has expressed in her paper, ‘SHG is a creamy layer for

Women’s social status’ that the SHGs remove the curse of money lenders. SHGs are the

ladder for upliftment of the downtrodden economically and socially. She has also

pointed out that the SHGs are taking up construction work for their hamlets like laying

of roads, closing down of liquor shops, contributing to the rehabilitation works and

management of their village affairs.

Rosappu and KalyanaSundar (2004) 62 have discussed in their article,

‘Economic Independence through Self Help Group’ that in the absence of extra time

and government jobs, the role of SHGs in generating funds, getting loan from the banks

and indulging in various business like making soaps, mats, chocolates, pappads

building toilets, coconut spoons, running tea shops, stone quarries, installing gas plants

and solar energy networks is highly commendable.

PremaParande (2005)63 empowerment is an active process of enabling women

to realize their identity, potentiality and power in all spheres of their lives. There are

several indicators such as participation in crucial decision-making process, ability to

prevent violence, self-confidence and self-esteem, improved health and nutrition

conditions and at the community level, existence of women’s organisation, increased

number of women in designing development tools and application of appropriate

technology etc. Improvement in economic status is a more visible indicator of women

60 A. Venkatachalam and A. Jeyaprakash, ‘Self Help Groups in Dindigul District’, Kisan World,

October 2004, Vol. 31, No. 10, pp. 2930.

61 Leelavathy, ‘SHG is a Cream Layer for Women’s Social Status’, Proceedings of National Level

Symposium on Self Help Group: A Silent Revolution, Arulmigu Palaniandavar Arts College for

Women, Palani, March 2004.

62 K. Rosappu and K. KalyanaSundari, ‘Economic Independence through Self Help Groups’,

Proceedings of National Level Symposium on Self-Help Group: A Silent Revolution, Arulmigu

Palaniandavar Arts College for Women, Palani, March 2004.

63 PremaParande, ‘Economic Empowerment of Women’, Southern Economist, March 2005, Vol. 43,

No. 21, p. 7.

68

empowerment. There are several factors that affect empowerment of women, for

instance education research document, campaigns and networking training, conscious

raising campaign, mind-full media, drawings, on burning issues, etc. are all important

means of empowerment yet, in particular, education and training are very effective

means but also sustain empowerment process in the long run.

SatyaSundaram (2005)64Microfinance is being provided through Self-Help

Groups and nongovernment organisations. The scheme is successful because it has

almost solved the problem of overdue. Besides credit is being put to the most

productive use, the SHG Bank linkage has greatly helped the weaker sections. The

voluntary agencies should aim at real empowerment of women. As a result of

reservation, there are a large number of women sarpanches, but they do not function,

but their husband’s function on their behalf, and the voluntary agencies must be in

touch with educational institutions for mutual benefit. Rural development is a vast field

and the problems are complex. Hence, voluntary action is needed to understand the

nature and dimensions of rural problems and also to evolve appropriate strategies to

solve these problems.

Ramakrishnan (2005)65 when the SHG initiative was launched to provide the

poor with access to formal financial services, it was somehow expected that

cooperatives would step into provide these services. Already existing small local level

institutions with their readily available support structure as seen in the case of the

agricultural credit societies were ideally placed to serve as outlets for financial services

to SHG, given their numbers and reach. Despite these advantages, agricultural credit

societies and cooperative banks have thus played a limited role in the programme of

linking SHG across States, the relationship between commercial success of cooperative

banks, the extent of the linkage established and the impact of such linkages on

performance. Most banks offer nominal membership to SHG, and only nine of the 199

banks allow full membership of any kind.

64 Satya Sundaram, ‘Voluntary Action for Rural Development’, Southern Economist, December 2005,

Vol. 41, No.15, p. 36.

65 R. V. Ramakrishnan, ‘SHG Bank linkage’, Economic and Politically Weekly, April 2005, Vol. 40,

No. 17, p. 1720.

69

Fredrick(2005)66As women receive better education and training, they earn

more money and as the economic status of women improves they gain greater social

standing in the household and the village and will have greater voice. As women’s

economic power grows it is easier to overcome the tradition of ‘son preference’ and

also put an end to the evil of dowry. According to the annual report of the Ministry of

Rural Development, 11.45 lakh of SHGs have been formed in India so far. 118413 SHG

exist in Tamil Nadu with 2326973 members in its fold.

VasanthKannabiran (2005)67 says that the increasing participation of women

in microcredit and formation of women’s Self-Help Groups have done little more than

assuring short term relief to ease immediate needs, what is absent is a long term social,

political and cultural vision that will end the subordination of women. The declaration

on SHGs, women’s empowerment and poverty reduction point out that one alarming

outcome of the emergence of SHGs has been the manner it has altered the nature of

discourse on development and social justice by placing the onus of overcoming poverty

of the poor. What SHGs provide women today is mere membership while obstructing

and obscuring their movement. Then movement serves to advertise the accountability

on the status of women in the international arena, for the women themselves it is one

step forward and two steps backward guaranteed to maintain the status quo on the issue

of subordination.

Asokan and Sudha (2005)68 in their article, ‘Economic Status of Rural Women

SHGs in Nagapattinam District with a Special Reference to Elumagalur Village’,

empirically analyses economic status of rural women SHGs in Nagapattinam District of

Tamil Nadu. The results have shown that sample respondents assets structure has

increased after joining as members in SHGs, particularly financial assets increased

considerably from 6.6 to 15.5 per cent. About 40 per cent of income has been generated

through groups’ activities and 42 per cent of women have become empowered in

decision making. They have also revealed that the SHGs are successful to some extent

in the study area in respect of economic process and social development.

66 J. Fredrick, ‘SHGs Gateway to Success for Rural Women Entrepreneurs’, Kisan World, September

2005, Vol. 32, No. 9, p. 60.

67 VasanthKannabiran, ‘Marketing SelfHelp, Managing Poverty’, Economic and Political Weekly,

August 2005, Vol. 40, No. 34, p. 3716.

68 R.Asokan and T. Sudha, ‘Economic Status of Rural Women SHGs in Nagapattinam District (with

special reference to Elumagalur Village’, Cooperative Perspective, January 2005, Vol. 39, No. 4, pp.

5257.

70

Chittaranjan Mishra (2005) 69 in his article, ‘SHGs in the unorganized

garment sector: A case study of Madurai’ has explained that two types of Self Help

Promoting Institutions (SHPI), namely, Government and NGOs are active in the

household level garment sector. The DRDA promoted SHGs are more organized and

have better infrastructure to carry out the activities relating to the garment sector. The

NGO promoted SHGs, on the other hand, have taken part in other developmental

activities in the village in a bigger way than in the DRDA promoted ones. He has also

indicated that capacity building and credit availability are complementary inputs to the

growth of SHG based garment sector.

Kamaraju (2005)70has mentioned in his article, Self Help Groups Emerging

Rural Enterprises” that in rural areas SHGs utilized the loan for purchasing milch

animals, goats and for meeting personal urgent needs. Some SHGs have purchased

power tillers for agriculture purpose on hire basis. Investment in power tiller will

increase their income both individually and collectively. Hiring out power tiller to

peasants is an important entrepreneurial activity of SHGs. He has also indicated that the

SHGs should function as a nonpolitical and non-controversial one. Political and

religious neutrality paves the way for its healthy growth. He has also expressed that

SHG gains momentum nowadays because of its many fold effect in the economic

empowerment of poor women.

Ramakrishnan (2005)71has highlighted in his work, ‘Online payment facility to

give boost to SHGs’ that online payment facility for products manufactured by rural

SHGs in the State will soon become a reality. Both the State and district level bodies are

marketing products made by the SHGs. He has also expressed that the facility will be

available to those within the country. The SHGs transact business to the tune of Rs 2

crore to Rs 3 crore. A novel marketing strategy adopted by them is ‘Intra sales’, where

requirements of one set of groups are met by another. They have set up 225 village

shops and 28 district marketing complexes.

69 Chittaranjan Mishra, ‘SHGs in the Unorganized Garment Sector: A Case Study of Madurai’,

Kurukshetra, July 2005, Vol. 53, No. 8, pp. 4346.

70 S. Kamaraju, ‘Self Help Groups: Emerging Rural Enterprises’, Kisan World, Aug 2005, Vol. 32, No.

8, pp. 2526.

71 T. Ramakrishnan, ‘Online Payment facility to give a boost to SHGs’, The Hindu, dated 7 Oct 2005.

71

Subashini Muthukrishnan (2005) 72 has explained in her paper “Effective

marketing Strategies for women Self-Help Groups” that the SHGs should be careful in

terms of positioning their product relative to other competitive products and markets.

They have to decide on the product and in price visa vis its cost of production, returns

and the price at which its competitors are selling the product, credit time, marketing

infrastructure available etc. She has also specified that SHGs must focus on improving

the quality of the product.

Velu Suresh Kumar (2005) 73 has mentioned in his article, ‘Women

Empowerment Success through Self Help Groups’, that apart from financial aspects, it

also becomes a platform for exchanging ideas regarding prevention of AIDS, dowry,

nutrition, marital laws, literacy, sanitation, children rearing etc. He has also pointed out

that leadership qualities developed through SHG meetings have seen 2500 women

becoming presidents or members of panchayats and local bodies in the State.

Banumathy (2005)74has explained in her article “Self Help Groups and Bank

Linkage” that the initial role played by SHGs, prompted NABARD to venture linkage

of SHGs with banks in February 1992.She has also stated that RBI has advised banks to

initiate action for adopting SHG village programmers as a part of their corporate

strategy.

Suguna (2006)75 has pointed out Mahatma Gandhi’s words, “Woman is the

companion of man, gifted with equal mental capacities, she has the right to participate

in the activities of man and she has the same right, freedom and liberty as he, she is

entitled to a supreme place in her own place in her own sphere of activity as man is in

bias.”

72 Subhasini Muthukrishnan, ‘Effective Marketing Strategies for Women Self Help Groups’,

Proceedings of the State Level Symposium on Socio Economic Impact of SHG on Women, P.S.G.R.

Krishnammal College for Women, Coimbatore, February 2005.

73 Velu Suresh Kumar, ‘Women Empowerment: Success through Self Help Groups’, Kisan World,

November 2005, Vol. 32, No. 11, p. 31.

74 S. Banumathy, ‘Self Help Groups and Bank Linkages’, Kisan World, Nov 2005, Vol. 32, No. 11, p.

19.

75 B. Suguna, Empowerment of Rural Women through Self-Help Groups, Discovery Publishing House,

New Delhi, 2006, p. 73.

72

Sakunthalai and Ramakrishnan (2006)76 the concept of SHG is catching up

as the most viable means to empower women, especially at the grass root level. Women

have shown extraordinary dynamism in organizing themselves in group activities for

income generation; better bargaining power and improvement in the quality of life.

Some advantages through Self-Help Groups in the villages and in the community are

inculcation of the spirit of Self-Help, collective action for development, women begin

to form similar group seeing the success of the other SHGs, family welfare through

social awareness women, enhanced social status from secondary to primary, economic

independence, voicing and acting against social injustices, problem solving ability and

increased consciousness.

Nagayya (2006)77 in his article, ‘Microfinance for Self-Help Group’ has stated

that the bank and Self Help Group linkages through financing agencies helps to

empower the poor and mobilizing collective strength to make them self-reliant. He has

also stated that government intervention will not be able to bring a change in intrinsic

attitude of the communities so as make efficient use of credit sanctioned.

Harjeet Ahlulwalia (2006)78 opines that women in India are a mixed lot. Some

are well in control of their destinies; others depend to a large extent on their husbands or

fathers and are denied even the freedom of thought. Somewhere along the line there are

also women who actually run their households single handedly not because they are

separated or widowed but because their men would have it so. This is a predominant

feature of the below poverty line families. The search for employment takes them away

from home, leaving their children prey to neglect, hunger, disease and even

exploitation. In extreme cases, women are even forced into prostitution. The answer

may not lie in giving jobs to women, but it certainly eases their burdens if enough

employment avenues were available closer to home, rational training programmes

conducted that can lead to assured incomes with flexibility in working hours, childcare

centre setup etc. Well kept conveniently located daycare homes, dedicated train or bus

services to commercial centers, more congenial work environment etc. are all major

76 A. Sakkunthalai and Ramakrishnan, ‘Socioeconomic Empowerment of Women’, Kisan World, July

2006, Vol. 33, No. 7, p. 31.

77 D. Nagayya, ‘Microfinance for SelfHelp Group’, Kurukshetra, 2006, Vol. 48, No. 11, p. 10.

78 HarijeetAhluwalia, ‘Empowerment of Women: An Economic Agenda’, Yojana, August 2000, Vol.

44, No. 8, p. 33.

73

factors that can both encourage full time working women and increase their

productivity levels.

Sandhya Rani (2006)79 says that the Indian economy needs to generate a large

number of jobs in the decentralized rural nonfarm sector. The rural economy in recent

years has been showing clear positive signs for the microenterprise opportunity

especially for women. The prospects of micro entrepreneurship are many in a few

subsectors such as trade, transport, construction and service. Availability of microcredit

helps SHG women a lot and many women come forward and establish

microenterprises. At present a good number of NGOs and financial institutions have

been offering microfinance especially to women micro entrepreneurs. The

microfinance assistance from banks, NABARD and financial institutions like SFCs has

been encouraging women to start microenterprises. As a result micro entrepreneurship

is gradually growing importance among the jobless particularly among the educated

and uneducated urban and rural women.

Mohanam (2006)80 says that the microcredit system has particular relevance to

women and their empowerment, considering the historical perspective of the

involvement of women in the thrift and credit activity. The role of NGOs is moral

significant and pronounced in the sphere of microcredit. The rich experience of NGOs

and their problem is a potential factor that affirms their elevated role in the sphere of

microcredit.

Ghosh (2007)81 points out that there is no doubt that combating poverty cannot

be managed by the government alone. There are many areas where government needs

collaboration and cooperation from NGOs particularly in creating opportunity

facilitating empowerment and providing security to the poor. The pressure of the donor

agencies on the recipient government to work through NGOs in development

programme is also a dominant factor in increasing the role of NGOs to fight against

poverty.

79 G. Sandhya, ‘Promoting Micro entrepreneurship for Women’s Development’, Southern Economist,

May 2006, Vol. 45, No. 1, p. 45.

80 S. Mohanam, ‘Microcredit and Empowerment of Women: Role of NGOs’, Yojana, February 2006,

Vol. 68, No. 4, p. 29.

81 D. K. Ghosh, ‘NGO Intervention in Poverty Alleviation’ Kurukshetra, March 2007, Vol. 49, No. 6, p.

21.

74

UshaRao (2007)82 women form an important segment of the labour force and

economic role played by them cannot be isolated from the total framework of

development as the role and degree of integration of women in economic development

is always an indicator of economic independence and social status.

Joshi (2007)83 microfinance provides credit access to poor with no collateral

obligations. It encourages savings and promotes income generating activities. Loans

are provided at the market driven rates of interest and peer pressure is used in

repayment. Microfinance is carried out through Self-Help Groups, where poor come

together in the range of 1020 by weekly, fortnightly and monthly meetings through

their savings and loaning. It is hoped that through such interventions hitherto uncovered

groups are covered with credit and in the process get empowered.

Laxmi (2007) 84 reports that SHGs are to supplement credit strategies for

meeting the needs of the poor by combining the flexibility, sensitivity and

responsiveness of the informal credit system with the technical/ administrative

capabilities and financial resources of formal financial institutions to build mutual trust

and confidence between bankers and the tribal poor and to encourage banking in a

segment of population that formal financial institution usually find difficult to reach

this innovative form of financing is imperative.

Bimlasen (2007)85 mentions that the empowerment is an active process of

enabling women to realize their identity, potentiality and power in all spheres of their

lives. There are several indicators of employment. At the industrial level, participation

in crucial decision making process, ability to prevent violence, self-confidence and

self-esteem, improved health and nutrition conditions and at the community level,

existence of women’s organisation.

82 J. Usha Rao, Women in a Developing Society, Ashish Publishing House, New Delhi, 2007.

83 S. C. Joshi, ‘Microcredit not Charity’, Social Welfare, February 2007, Vol. 48, No. 32, p. 12.

84 R. K. Laxmi, ‘Self Help Groups Innovation in Financing the Poor’, Kurukshetra, November 2007,

Vol. 24, pp. 1415.

85 G. Bimlasen, Women Power: The Changing Scenario, Better Books, Panchakula, 2007, pp. 121129.

75

Sivaramakrishnan (2007)86 opines that the Swaranajayanthi Gram Swarozgar

Yojana aims at establishing a large number of microenterprises in rural areas, bundling

upon the potential of the rural poor. The objective under SGSY is to bring every

assisted family above the poverty line in three years.

Indira Misra (2008) 87 While focusing on the definition of entrepreneurship,

Indira Misra moves onto incorporate some basic factors like openness to

entrepreneurship, balancing business attractions, willingness to invest, thinking beyond

town borders etc. which would be required by the rural community to look into and

identify platforms and opportunities either inherently available or which need to be

developed to encourage entrepreneurship. It touches upon the fact that to promote rural

development, entrepreneurship was seen as a strategic development intervention that

could accelerate the rural development process. It is pointed out that institutions and

individuals seem to agree on the urgent need to promote rural enterprises.

Mukundan and Hilaria Soundari (2008)88report that one of the most basic

causes for the women’s inferior status is the inadequacy of the legal system to keep

pace with the changing needs and times and to provide them with the framework which

would enable them to contribute their ability fully to society. Discrimination between

sexes may stem from attitudes, customs, traditions and cultural norms. The victims of

discrimination look upon law for equality and justice. Law includes not only the

provisions of the Constitution and legislation but also judgments and governmental

decisions and actions.

Shobha (2008)89has evaluated the problems of self-employed women. The

study took 400 self-employed women as sample from Coimbatore Municipal

Corporation limit and used scaling technique. The study has concluded that the

problems faced by the beneficiaries of Prime Minister’s Rozgar Yojana are less severe

than no beneficiaries.

86 Sivaramakrishnan, ‘SHGs and the political participation of women in Panchayat Raj Institutions: A

case study’, Southern Economist, 2007, Vol. 47, No. 18, p. 15.

87 Indira Misra, ‘Towards Empowerment of women through Rural Entrepreneurship’, Indian Journal of

Public Administration, October 2008, Vol. 43, No. 54, p. 933.

88 N. Mukundan and M. Hilaria Soundari, Emerging Dimensions in Self-Help Groups, Dominant

Publishers and Distributors, New Delhi, 2008, pp. 7095.

89 Shobha, ‘Problems of self Employment of Women: An Analysis’, Southern Economist, 2008, Vol.

47, No. 6, pp. 2426.

76

Sakthivel Murugan and Begum (2008)90have made an attempt to explain the

predominant barriers to women entrepreneurs. The study is based on the primary data

collected from the sample 100 entrepreneurs of Chennai City. The study reveals that

social and cultural barriers are prominent formidable block for the development of

women entrepreneurs. The study concluded that entrepreneurs with ability to plan and

run a business, deliver quality products.

Gudaganavar Nagaraj and Gudaganavar Rajashri (2008)91have examined

the empowerment of rural women through SHG. They highlight the progress of SHGs

in India from 1992-93 to 2006-07. They have also highlighted the region wise progress

of SHGs and employment of women through SHGs. They conclude that no

development is possible without empowerment of women.

Shiralashetti and Hugar (2008)92have reviewed the progress of SHGs and

their linkage to bank. The study is based on the secondary data collected from annual

reports of the NABARD. The main objectives of the study are to examine the progress

of SHGs and bank linkage in India with a reference to Karnataka State. The study

includes district wise and bank wise linkage of SHGs in Karnataka State. They

conclude that SHG movement is a powerful tool for alleviating the poverty of the

people.

Ganapathi and Sannasi (2008)93highlighted the factors influencing the women

entrepreneurs. The study highlighted the common features of women entrepreneurs,

challenges faced by them while undertaking the entrepreneurial activities and the

necessary strategies to overcome the challenges. The study concluded that women must

be motivated to establish business in the interest of the family income in particular and

national income in general.

90 M. SakthivelMurugan and Begum Ayesha, ‘Predominant Barriers of Women Entrepreneurs’,

Southern Economist, 2008, Vol. 47, No. 6, pp. 3134.

91 V. GudaganavarNagaraj, and S. GudaganavarRajashri, ‘Empowerment of Rural Women Through

SHG’, Southern Economist, 2008, Vol. 47, No. 19, pp. 3537.

92 A. S. Shiralashetti and S. S. Hugar, ‘Microfinance: A study of SHG and Bank Linkage’, Journal of

Business Studies, 2008, Vol. 5, No. 9, pp. 3137.

93 R. Ganapathi, and S. Sannasi, ‘Women Entrepreneurship: The Road Ahead’, Southern Economist,

2008, Vol. 46, No. 18, pp. 3638.

77

Chandrashakar and Lokesh (2009)94 have pointed out that the NGOs are

useful in organizing Self-Help Groups, in capacity building and in developing access to

the institutions and resources of the State. However, officials are suspicious of the role

of NGOs who are perceived as undermining their power. When NGOs are allowed to

implement government projects there is too much bureaucratic meddling. The long list

of do’s and dont’s of government procedure accords ill with NGO thinking and

approach. In the recently restructured self-employment programme in the form of the

Swarna Jayanthi Gram Swarozgar Yojana (SGSY), group schemes through the

formation of SHGs have been overwhelmingly preferred. However, in none of the

North Eastern States below poverty line (BPL) lists are ready to organize households

into SHGs to implement the programme.

Kumararaja (2009)95 in analyzing the impact of Mahalir Thittam of Tamil

Nadu State has observed that SHG women are currently involved in economic activities

such as production and marketing of agarbathis, candle and soap, readymade garments,

pickles, pappad, vathal, fur toys, bags, palm leaf products, ornaments, eatables, coir mat

and other coir products, mattresses, chaples, leather goods etc. The SHG women

monitor the normal and proper functioning of the ration shops, maintain vigil on

brewing of illicit liquor and help the aged, deserted and widows to obtain loan. In

addition to savings, the SHGs are engaged in village cleanliness, repair to village

approach, adult literacy campaign, family planning and child health, pulse polio

campaign, backyard garden, health checkup camps, prohibition in the village, banning

tobacco consumption and sales, AIDS awareness etc. The project has achieved 100%

repayment in case of lending to SHGs, by banks and 95% in internal lending of

Self-Help Groups. Repayment rates of direct borrowers have increased from 30 to 70

per cent. Banks disburse the credit to SHGs within seven days at their doorsteps. SHGs

help in forming Village Development Council (VDC). These VDC members are

involved in social and infrastructural development works.

94 Chandrashakar and M. U. Lokesh, ‘Role of SHGs in Socioeconomic change of vulnerable poor’,

International NGO Journal, April 2009, Vol. 4, pp. 127131.

95 Kumararaja, ‘Performance of SHG in Tamil Nadu’, Southern Economist, 2009, Vol. 47, No. 19, pp.

1416.

78

Kumararaja (2009)96has made an attempt to evaluate the performance of SHGs

in Tamil Nadu. The study highlights the progress of SHGs in India and in Tamil Nadu.

It reveals that there has been a steady progress in the number of SHGs and amount of

loan sanctioned. The study concludes that a timely and regular check of the microcredit

through SHGs will contribute to a healthy progress and to the overall development of

rural women.

Sankaran (2009)97has made a study on the trends and problems of rural women

entrepreneurs in India. The study highlights the conceptual aspects of trends and

problems of rural women entrepreneurs in India. It concludes that women have creative

ability, easy adaptability and ability to cope with setbacks.

Saurabh (2009)98 focuses on the experience of microfinance programmes in

the context of liberalization. The author highlights the rural Indian society and Indian

rural financing system. The study suggests eliminating the shortcomings of the existing

rural financing system by establishing more microfinance projects and RRBs .

Lalitha and Prasad (2009) 99 have analyzed the empowerment of women

through Development of Women and Children in Rural Areas (DWCRA) programme

in the Guntur district of Andhra Pradesh. The study reveals that the income of

individual after joining DWCRA programme has increased comparatively. The study

concludes that the potential of women is not fully tapped and utilized for the

community.

Sarswathy et al. (2009)100have analyzed the role of microfinance in Krishnagiri

district. They highlight the role of Government of India, NABARD, NGO and banks.

The questionnaire was prepared and presented to 75 members of 16 SHGs and 9 NGOs.

The study reveals that majority of members agree to the point that their income has

96 Ibid.

97 A. Sankaran, ‘Trends and Problems of Rural Women Entrepreneurs in India;, Southern Economist,

2009, Vol. 48, No. 4, pp. 1112.

98 Saurabh Kumar, ‘New Dimension of Empowerment’, Professional Banker, 2009, Vol. 9, No. 9, pp.

2529.

99 K. Lalitha and G. Prasad, ‘Empowerment of Women: DWCRA Programme’, Southern Economicst,

2009, Vol. 47, No. 2324, pp. 1316.

100 A. Saraswathy, S. Porkodi and M. Bhuvaneswari, ‘Microfinance in Krishnagiri District’, Indian

Journal of Marketing, 2009, Vol. 39, No. 5, pp. 4757.

79

increased after joining SHG. It concludes that SHGs have become the development

ambassador of villages.

NCSW Report (2009)101 states that Self-Help Groups have taken the form of a

movement for women especially rural women’s social and economical development.

SHGs have arisen out of the perceived problems of women’s lack of access to resources

at both the household and the village level. In the past 20 year, Self-Help Groups have

become significant institutions for rural development in India. This has been

particularly true in the case of poor women.

Nagaraj and Chandrakanth (2009)102explained an SHG is a group of about 10

to 20 poor women or men from a similar class and region, forming a savings and credit

organisation by pooling financial resources in order to extend loans to the members at

low interest with far fewer procedural hassles. ‘Savings first’ is the prime ethic of

SHGs. The National Bank for Agriculture and Rural Development (NABARD),

Reserve of Bank of India (RBI) leading NGOs and a multilateral agencies included

SHG as strategic component to mitigate poverty.

Tonmoyee Banerjee (2009)103his case study made an effort to estimate the

impact of Self-Help Groups created under SGSY programme and has been observed

that income generation through group activities has improved the average income of

group members, but the inequality of distribution of income is high among the group

members than that of the no group members. Further there has been a significant

decline in the medical expenditure and school dropout rate in the families of group

members than that of non group members.

Nagayya and KoteswaraRao (2010)104states that microfinance refers to credit

provided to the poor for self-employment and other financial and business services.

They review the recent trends in the SHG Bank linkage programme at National and

101 NCSW Report, National Perspective Plan for Women, Government of India, Ministry of Human

Resource Development, New Delhi, 2009, p. 119.

102 N. Nagararaj and M. G. Chandrakanth, ‘Economic Performance of Self-Help Groups in Karnataka’,

Indian Source of Agriculture Economics, October December 2009, Vol. 64, No. 4, p. 604.

103 Tonmoyee Banerjee, ‘Economic Impact of SelfHelp Groups in Parganas District of West Bengal’,

Journal of Rural development, October December 2009, Vol. 28, No. 4, pp. 451452.

104 D. Nagayya and D. Koteswara Rao, ‘Microfinance and Support Organisations in the Southern States

of India’, Journal of Rural Development, 2010, Vol. 28, No. 3, pp. 285300.

80

State level with special reference to Andhra Pradesh in detail and certain aspects of the

other three southern States, viz. Tamil Nadu, Karnataka and Kerala.

Satpal Sunil Phougat and SilenderHooda (2010)105stated that there is lack of

diversities in the Self-Help Groups activities in the State. Highest amount of resource

have been spent on primary sector and mainly on milk cattle. There is less attention has

given in other areas such as handlooms, handicrafts and other activities in the State. The

problem of marketing of the goods by Self-Help Groups is a big constraint in achieving

the targets. So, there is need for proper attention to solve such type of problems under

SGSY.

Vetrivel S.(2010)106studied that In India, the emergence of liberalization and

globalization in early 1990's aggravated the problem of women workers in unorganized

sectors from bad to worse as most of the women who were engaged in various

self-employment activities have lost their livelihood.

Microfinance is emerging as a powerful instrument for poverty alleviation in

the new economy. In India, Microfinance scene is dominated by Self Help Group

(SHGs) - Bank Linkage Programme as a cost effective mechanism for providing

financial services to the "Unreached Poor" which has been successful not only in

meeting financial needs of the rural poor women but also in strengthening collective

Self-Help capacities of the poor leading to their empowerment.

A Amarender Reddy and Dharm Pal Malik (2011)107As on 31 March 2009,

there are more than 6.1 million saving-linked SHGs and more than 4.2 million

credit-linked SHGs and thus, about 86 million poor households are covered under the

programme. The SBLP targeted to reach 100 million of households by 2015. The paper

tries to examine the spread of SBLP among geographies and poor and suggest ways to

overcome regional and class differences in reach.

105 Satpal Sunil Phougat and SilenderHooda, ‘Swarnajayanthi Gram SwarozgarYojanaProgramme

implemented in Haryana’, Southern Economist, February 2010, Vol. 48, No. 20, pp. 4144.

106 Vetrivel S.C3 Advances in Management. Jun2010

107 A.Amarender Reddy and Dharm Pal Malik

81

Bali Swain, Ranjula Wallentin, Fan Yang4(2012)108evaluated the impact of

economic and non-economic factors on women’s empowerment of Self-Help Group

(SHG) members. They estimate a structural equation model (SEM) and correct for

orderly in the data to account for the impact of the latent factors on women’s

empowerment. Researchers SEM results reveal that for the SHG members, the

economic factor is the most effective in empowering women. Greater autonomy and

social attitudes also have a significant women empowerment impact.

Padmalochan Mahanta, Gitanjali Panda Sreekumar (2012)109 Point Out

that lending to the poor through microcredit is not the end of the problem but beginning

of a new era. If effectively handled, it can create miracle in the field of poverty

alleviation. But it must be bundled with capacity building programs. Government

cannot abdicate its responsibility of social and economic development of poor and

down trodden. In absence of any special skills with the clients of microcredit, the fund

is being used in consumption and procurement of non-productive assets. Hence it is

very important to provide skills development training program like handicraft,

weaving, carpentry, poultry, goat rearing, masonry, bees farming, vegetable farming

and many other agricultural and non-agricultural training. Government has to play

proactive role in this case. People with some special skills have to be given priority in

lending microcredit. These clients should also be provided with post loan technical and

professional aid for success of their microenterprises. If government and MFIs act

together then microcredit can play a great role in poverty alleviation.

Suja S(2012) 110 Found that Association in Self Help Groups has enabled

women to gain greater control over resources like material possession, intellectual

resources like knowledge, information, ideas and decision making in home,

community, society and nation. The SHGs crosswise states have paved attention on

skill improvement, facilitating invention, gaining access to credit from financial

institutions for micro enterprises / projects, inculcating of frugality: and supervision of

credit for the economically destitute sections of women. Since Government is

108 Bali Swain, Ranjula Wallentin, Fan Yang4 International Review of Applied Economics. Jul 2012

109 PADMALOCHAN MAHANTA, GITANJALI PANDA, SREEKUMAR(2012), international Journal

of Marketing, Financial Services & Management Research Vol.1 Issue 11, November 2012,

110 Suja, S2 Global Management Review. 2012, Vol. 6 Issue 3

82

concentrating on women Self Help Group for the economic growth and poverty

alleviation, this study becomes the need of the hour.

Dr. Sadyojathappa s (2012) 111 Microfinance definitely been significant

advances in recent years and the concept and practice of SHG-based microfinance has

now developed deep roots in many parts of the country. It has also emerged as a vital

approach to meet the heterogeneous needs of the poor. In India, microfinance in the

formal sector has assumed the form of SHG-bank linkage program. Through this

program, the Reserve Bank of India and NABARD have tried to promote relationship

banking, i.e., "Improving the existing relationship between the poor and the bankers

with the social intermediation of the NGOs." The SHG-bank linkage program in India

is rapidly expanding its outreach under the pioneering initiative of NABARD, the

monitoring and supervision of RBI, and the promotional policies of the government of

India. At the grass root level the program is being implemented by the commercial

banks, cooperatives, and regional rural banks, with government agencies.

Shivaprasad G & Dr.Anilkumar K.H (2013)112point out the strength of

STCCS lies in having a vast network of 21 DCC Banks at District Level, with more

than 603 branches at Block, Taluk and Hobli level and more than 4700 PACS at

Panchayat and Village level. Hence, the STCCS outreach is more effective than

Panchayaths in the state Co-operative bank has increased the credit facility to the

SHG’s. In 2007-08 Bank has financed Rs. 251.30 Crores but as per the recent statement

of the Bank it has sanctioned Rs. 2037.18 Crores in 2011-12, which is almost ten times

compared to 2007-08. This shows that Karnataka Cooperative bank is supporting for

the SHG’s growth in the State. Numbers of SHG are dramatically increased in the State.

It was 14,061 Self-help Groups in 2007-08 and it was increased to 19,495 in year

2010-11. But bank has promoted only 15,381 Self-help groups in 2011- 12, which is

less compare to the previews year that is 2010-11. Bank targets to finance at least 3

lakhs self-help groups by 2015.

111 International journal of social sciences online available at indianresearchjournals.com

&interdisciplinary research vol.1 no. 6, june 2012, issn 2277 3630

112 1.Shivaprasad G 2.Dr.AnilkumarK.H Asian Pacific Journal Of Research June 2013, Volume No: 2

Issue: 4

83

Dr. Saghir Ahmad Ansari, (2013) 113 :SHG-Bank linkage programme has

emerged as the biggest micro-finance programme in India enabling about 70 million

poor households to gain access to micro-finance facilities from the formal banking

system. However, SHGs formed and financed by banks have also increased their share

in recent years from 13 percent in March 2001 to 20 percent by March 2010. This

reflects that commercial banks are making sincere efforts to increasingly involve

themselves directly with the local rural poor people in their socio-economic

development. Recovery rate, under the SHG model, is 94 percent which indicates that

poor people are ready to use credit facilities from institutional sources at market rate of

interest provided that it is available hassle-free and at the time it is needed. The overall

NPAs of 1.36 percent till March 2007 were much lower than NPAs of 5 percent of all

scheduled commercial banks. This clearly indicates that SHG-Bank Linkage

programme is economically viable and sustainable.

Anshu, Satish Kumar Gauba (2013)114Microfinance is one of those small

ideas that turn out to have enormous implications. Microfinance is considered to be a

valuable tool for the alleviation of poverty around the globe. In order for microfinance

to realize its full potential, however, it must be sustainable and capable of expansion

beyond the limitations imposed by a reliance on development assistance. Both

developing and developed nations are key actors in this regard.

Major R. Rajasekaran and R. Sindhu(2013)115Self-employment is better

suited to women. If she is her own master of any of her work schedule, she can adjust

her work. At present women have broken the monopoly of men and proved that they are

not inferior to men. Over the past few decades the women has been breaking traditional

role of a mother or a house wife. It is clear from the study that women entrepreneur of

SHGs has good work force, under the dynamic setting of business, if women

entrepreneur is given a proper guidance and training to enhance the profitability of the

enterprises the future will be bright and prosperous.

113 Dr. Saghir Ahmad Ansari, SHG Bank Linkage Programme In India: An Overview, International

Referred Journal Of Arts Science & Commerce, Volume.1, Issue.1, Page 15.

114 Anshu, 2Satish Kumar Gauba IJMBS Vol. 3, Issue 2, April - June 2013

115 Major R. Rajasekaran1 and R. Sindhu Global Journal of Management and Business Studies. ISSN

2248-9878 Volume 3, Number 7 (2013), pp. 703-710

84

Govindarajan, Latha Padhmanabhan(2013) 116 Examined the relationship

between women Self-Help Group (SHGs) satisfaction and process dimensions of

workgroup characteristics. Women SHGs are formed with a purpose of promoting

women's economic and social empowerment. Members are motivated to engage in any

economic activity in groups like producing bakery products, home furnishing

decorative items, packaged readymade food mixes, etc. These SHGs are selected

through eight NGOs that are affiliated with women's welfare program, a scheme under

'Mahalir Thittam', Women's Welfare Project, Coimbatore District Collect orate, Tamil

Nadu, India, using multistage sampling.

K. Geetamma Bulla (2013)117Studied that the Micro finance through Self Help

Group (SHG) has been recognized internationally as the modern tool to combat poverty

and for rural development. Micro finance and SHGs are effective in reducing poverty

creating awareness which finally results unsustainable development of the nation.

SUMMARY

The above literature reviews reveal that there is definitely a need to strengthen

the existing working pattern of SHGs and lending norms of SHGs for members. Further

it was observed that SHGs play a predominant role in poverty alleviation and

self-employment generation. Hence there is a greater need to associate the SHGs with

commercial/RRBs. These studies have specifically thrown light on certain specific

unexplored areas, which need great importance and attention. Hence present study.

116 Govindarajan, Latha Padhmanabhan, V1 IUP Journal of Organizational Behavior. Jul2013, Vol. 12

Issue 3,

117 K. Geetamma Bulla, B.5 Golden Research Thoughts. Jul 2013.