A Study on Impact of Microfinance Schemes to Women Self-Help Groups Empowerment in Erode District

Abstract

Microfinance to Self Help Groups (SHGs) may be considered as a vital option for meeting the financial needs of those poorer sections of the society. The SHG is the platform or forum to the members to come together for emergency, disaster, social reasons, and economic support to each other and have ease of conversation, social and economic interactions. Microfinance is a broad term that includes deposits, loans, payment service and insurances to poor. This present study is started with the intention to check socio-economic profile of SHGs, different problems in SHGs business, impact of microfinance and benefits of microfinance. This study is effectively done by distributing well-structured questionnaire with 100 samples data. The collected data has been analysed with the use of percentage analysis, factor analysis, multiple linear regression analysis, and t-test.. Microfinance mainly impacts SHGs and offers superfluity benefits to the women SHGs. The results of the present study would help the policy makers, NGOs, Micro Finance Institutions (MFIs), Governmental agencies to address the various aspects like poverty alleviation, income generation, and socio-economic up-gradation through microfinance support to women SHGs. This study concludes that diverse problems have affected the SHGs business.