An Analytical Study of Micro Finance and Women Empowerment

Abstract

Self Help Groups enhance the equality of status of women as participants and decision makers in the democratic, economic, social and cultural sphere of life. The basic principles of SHG are group approach, mutual trust, organization of small and manageable groups, group cohesion, Thrift spirit, demand-based lending, collateral free loans, peer group pressure, skill training, capacity building and empowerment. At present, 1.40 lakh groups are functioning with 23.83 lakh members. It was found that Self Help Groups suffer due to lack of management skills, training, marketing, obtaining financial assistance, government support. Keeping this in mind, the present study is conducted to examine the efficacy of Self-Help Groups in the study area. It is found that 85 (34%) respondents have completed only primary education. It is found that 140 (56%) respondents have monthly income between Rs 10,001 to Rs 15,000. Therefore, it is suggested that informal groups can be formed on their own to create a reliable and potential source of income, increasing the earning capacity of SC women in Self Help Groups. It is concluded that formation of Self-Help Groups is part of the empowerment process and a micro-credit project.