Presented by: Anil Ratnu (1761) Muzaffar Hussain (1778)

SHG - A group of 10-20 people from a homogeneous class, who come together for addressing the common problems.

Ideal number of members would be between 15 -20. They are encouraged to make voluntary thrift on a regular basis. Trust among members in the group. The Group Maintains books of accounts.

S E L F

Saving Earning Learning Friendship H E L Honesty Economy Leadership Productivity

G R O U P

Growth Resources Opportunities Unity Progress

To assess the impact of SHG-bank linkage programme on income generation of the SHG households.

To know the utilization of credit.

To find problems of SHPI for promotion and maintenance of SHGs. To find out the change in access to nutrition, childrens education and health care.

Descriptive Research Research Type Area sampling

Sampling

5 regions
Sample Size
150 SHGs

15 blocks

Region
North North North South South South East East East West West West Center Center Center

Block Name
Hamirgarh Raipur Asind Mandalgarh Gulabpura Shahpura Gangapura Jahazpur Mandal Kotri Banera Bijoliya Karera Shambopura Mahwah

Number of SHG
10 10 12 12 6 10 15 5 10 10 10 5 15 10 10

Total

150

Interviews via Questionnaires

PRIMARY DATA Data Sources SECONDARY DATA

Informal discussions

Annual Reports of the organizations, Files and Office documents

Various books and internet

Illiterate respondents (SHGs).

Busy schedule of officers in organizations

Time constraints due to wide scope of study

Inaccessibility of SHG members

Transportation problems in villages

S. Banks no 1 2 3 Commerical Bank RRBs CCBs Total

No. of SHGs

Total Loan given to SHGs (Rs in lakhs) 7697.98 3912.22 5123.93 16734.13

9597 8843 11247 29687

32.32 29.79 37.89 100.0

46.00 23.38 30.62 100.0

Source :Apex Bank Report

DATA ANALYSIS

Problems faced in promotion of SHGs (%) (by SHPI)

Illiteracy/ignora nce of people 40%

Financial support 28%

Shortage of field staffs 32%

Problems faced during SHG Bank Linkage (%)

(by SHPI)

Problems associated with banks (35%) Lack of interest among SHG members (65%)

Distribution of SHGs by sex of members (%)

All female All male Mixed

Distribution of SHGs by caste of members (%)

Only SC/ST Only OBC SC/ST & OBC

10% 8.67%

SC/ST, OBC and General

20%

22%

81.33%

22% 36%

Distribution of SHGs by economic status of members (%)

All/majority BPL All/ majority APL

Total distribution of members by occupation (%)

Farmers Artisans Traders Agro processors Agriculture labour Non agriculture labour

48% 52%

20%

34%

26%
8% 10%

2%

Distribution of SHGs by percentage of loan recovery (%)

100% 95-99% 90-94% 2% 4% 85-90% 75-84% 50-74% <50%

2% 2% 4%

6%

80%

CHANGES IN ANNUAL NET HOUSEHOLD INCOME (Rs)

44500 44000 43500 43000 42500 42000 41500
Growth rate 6.1%

43950

CHANGES IN ANNUAL NET HOUSEHOLD INCOME

41000
40500 40000

41381

Pre SHGs

Post SHGs

Annual per household consumption expenditure of food (Rs)

4450
4400 4350 4300 4250 4200 4187 4150
Growth rate 5.1%

4401

Annual per household consumption expenditure of food

4100
4050 Pre SHGs Post SHGs

1360 1360

Annual per household consumption expenditure of nonAnnual per household consumption expenditure of food (Rs) non food
1352 1352

1340 1340
1320 1320 1300 1300 1280 1280 1260 1260
Growth rate 5.4%

Annual per per household Annual household consumption consumption expenditure expenditure of non food of non-food 1283 1283

1240 1240

Pre SHGs Pre SHGs

Post SHGs Post SHGs

Changes in expenditure on health (Rs)

320 315 314 310 305 300 295 290 285 Pre SHGs Post SHGs 297
Growth rate 6.6%

Changes in expenditure on health

Household income by sources of earnings (%)

35 30 25 20 15 10 5 0 6 8 12 14 34 28 24

26

18

20

Pre- SHGs

Post-SHGs

change in access to nutrition, childrens education and health care (%)

Increase No change Decrease

90 80 70 60 50 40 30 20 10 0

78

82 76

20

16 2 2 Childrens education

18 2 Health care

Nutrition

Distribution of saving instruments by households

160 140 120 No. of Members 100 80 60 40

150

33

42

20
0

0 SHG Pre-SHG Bank Post-SHG

Co-operative society

Percentage distribution of borrowers by source of loan (%)

60 60 50

48

40
30 20 10 0 0 SHG Banks Pre-SHG Moneylenders Post-SHG Relatives /friends 16 22 16 24 14

Changes in household availing loan (%)

100 90 80 70 60 50 40 30 54 46

92

20
10 0 Loans not taken

Loans taken Pre-SHG Post-SHG

Percentage distribution of loan use by purpose:

60
60 50 40

52 40

48

30
20 10 0 Pre- SHGs Post-SHGs Loan used for productive purposes Loan used for consumption purposes

Strengths
Linkages Regular savings Inter-lending Unity

Weaknesses

Lack of interest Lack of confidence Lack of time

Faith in each other

Opportunities

Threats

Government schemes More linkages More savings

MGNREGA

Lack of family support

Dominance by men Marketing Cluster or Federation Caste problem

80 per cent of SHGs have only women members. More than 52 per cent of SHGs consist of members belonging to BPL families.

Changes in net household income between pre-SHG and post-SHG registered a significant growth per year at 6.1 per cent. The annual growth rate of per household consumption expenditure on food and non-food items recorded 5.1 per cent and 5.4 percent respectively.

Per household annual expenditure on education and health recorded 6.6 per cent and 5.7 per cent growth respectively. On the issue of repayment of loan by SHG members, the findings show 90 per cent of households reported regularity in repayments of loans. About 92 per cent of households reported that the social empowerment of women had increased after attaining membership in SHGs over a period of time.

More than 60 per cent of the households indicated that there is an increase in the ownership of productive assets in post-SHG situation as compared pre-SHGs situation.

The major problems in promoting new SHGs as reported by SHPIs were mainly illiteracy and ignorance of people (40 per cent), shortage of field staffs (32 per cent) and financial support (28 per cent).

Let project be continued and also started in those villages where it has not started yet. Further formation of SHGs should be directed towards participation of BPL families. Employee from the linked bank should regularly attend the SHG meeting. Still 30% of total loan consumption comes from moneylenders and relatives so there is still scope for further loan disbursement. SHG members should be given proper training and guidelines to utilize the loan amount for income generating purpose.