INTRODUCTION:

In India, microfinance scheme is dominated by self help groups, bank linkage programme aimed at providing financial services to the undetected poor based on the philosophy of peer pressure and group securing as collateral substitute. The self help groups has been successful not only in meeting peculiar needs of the poor, but also in strengthening collective self help capacities of the poor at the local level leading to their empowerment. SHGs are making significant contribution to women empowerment and empower the members in economic, social and political spheres. The micro-finance programmes are also expected to become increasingly self-reliant and independent of donor funds through Self help groups.

India’s micro-credit programmes are implemented through group structure which is known as “self help group” it finances to groups. In Karnataka women self help groups are organised under “Stree Shakti Programme” this programme was implemented in the year 2000-2001 with an objective to empower rural women and make them to self reliant. SHGs are being organized by Government, NGOs and co-operative banks and women organisations Micro-finance is carried out through self help groups where poor come together in the range of 10-20 weekly, fortnightly and monthly meetings through their savings and loading. It is hoped that through such interventions uncovered groups are covered with credit and in process get empowered. Women led SHGs in many parts of the country have achieved success in bringing women to the mainstream of decision making. SHG is also a viable organized setup to disburse micro credit to the rural women and encouraging them to enter into entrepreneurial activities. And manage thrift appraise credit needs and enforce financial self-discipline.

Self help group have been evolved as a mechanism for meeting the socio-economic aspiration and credit need of poor’s. Involvement of SHGs with bank could help in overcoming the problem of high transaction cost in providing credit to the poor. The present study on “Micro-finance through SHG-a case study in Hubli-Dharwad” is carried to know the changes in Socio-economic and financial condition of SHG members through their functions.

INNOVATIONS IN MICRO-FINANCE IN KARNATAKA:

NABARD has been encouraging innovations in the state. A few instances are outlined below:

(a) Promotion of micro enterprise development among matured SHGs through MEPA:

A pilot project on promotion of micro enterprise development among mature SHGs through micro enterprise promotion agency (MPEA) has been launched in Mysore district. NABARD has identified MYRADA to act as MEPA for assisting capable SHG members to take up income-generating activities, on a sustainable basis.

(b) Pilot project on processor cards and branch automation:

NABARD has sanctioned grant assistance to Krishna Grameena bank towards cost of branch automation and introduction of processor cards to empower the bank’s clients including KCC card holders and SHG members with technology solutions. The project is being implemented through 5 branches of Krishna Grameena bank, in Bidar and Gulbarga district.

(c) Pilot project on ‘e-grama’:

A pilot project on ‘e-grama’ has been implemented with the help of Grameena Mahithi Parishath through establishment of 13 village information centres (VICs) in Davangere district aiming to provide IT-enabled information services to rural community. The services are provided through the usage of state-of-the-art KANNADA WEB PORTAL called www. Mahithi dhama.Org, which enables access to government programmes and benefits, market-related information, agricultural information, communication, etc,

(d) Joint Liability Groups (JLGs)-means to better access to credit:

A pilot project for smoothening credit flow to mid-segment Clients through formation of joint liability groups are under implementation in association with Varada Grameena bank, now karanataka Vikas Grameena bank, in the state. The project aims at providing credit to the unbanked mid-segment utilising the group liability concept. The bank has identified 5 branches for implementation of the project with NABARD’s grant support.

METHODOLOGY:

This study is an empirical survey to analysis the effectiveness of the SHGs and the impact of micro finance on women members of SHGs in terms of socio-economic and financial status. Random sampling method was adopted to select women members for the in-depth study.

OBJECTIVES:

1. To examine the participation of women in self help group.

2. To analyse the effectiveness of self help groups, in improving the Socio-economic and financial status of women.

3. To evaluate the role of SHGs in women empowerment in the study area.

HYPOTHESIS:

The following hypothesis is to be tested in the course of the present study:

1. The economic and financial conditions of women are unfavourable compared to that of men.

2. Women employment is positively associated with the performance of SHGs.

3. A self help group is an important instrument to alleviate poverty in general and women poverty in particular.

DATA COLLECTION:

The study is based on both primary and secondary data.

· Primary data collected through questionnaires, informal and formal discussions with SHGs members.

· Secondary data is obtained through books, articles, NABARD Websites etc.

SAMPLE SIZE:

In order to obtained information from respondents of SHG members in Hubli–Dharwad, 500 samples are selected from Hubli and 500 samples are from Dharwad.

AREA OF THE STUDY:

In the process of selecting the area choice fell on twin city Hubli and Dharwad in north Karnataka, there has been a burgeoning research on rural SHGs. The present study particularly have undertaken the task of conducting systematic research to assess the changes that are taking place in the impact of SHGs on micro finance and occurrence of improvement in Socio-economic and financial condition of women and to understand the sustainable development in Hubli-Dharwad cities.

GROWTH OF SHGs IN INDIA:

An effective use of any resources of a nation entirely depends upon one input is called credit. Such significance of credit has been denied right from the independence of India to the development of resources of weaker sections vis-à-vis poverty alleviation.

Table No.-01 Growth of SHGs in India (Rs in crore)

Sl. No.	Years	Number of SHGs	Bank loan	NABARD refinance
1	1992-93	255	0.29	0.27
2	1993-94	620	0.65	0.40
3	1994-95	2112	2.44	2.30
4	1995-96	4757	6.06	5.66
5	1996-97	8598	11.84	10.65
6	1997-98	14314	23.76	21.38
7	1998-99	32995	57.07	52.06
8	1999-00	114775	192.87	150.13
9	2000-01	263825	480.87	250.62
10	2001-02	461478	1026.30	796.47
11	2002-03	717360	2048.68	1418.80
12	2003-04	1079091	3904.20	2124.20
13	2004-05	1618456	6898.46	3092.01
14	2005-06	2238565	11397.55	4156.56
15	2006-07	2580000	14479.00	Nil
16	2011-12	7960000	16534.77	3072.59
17	2012-13	7318000	3072.59	3916.64
18	2013-14	7430000	24017.36	3745.84
19	2014-15	7697000	27582.31	4493.67
20	2015-16	4672621	5711923	6906.03
21	2016-17	4848287	61581306	5659.51

Source: various issues of progress of SHG- bank linkages in India, NABARD, Mumbai

Table No.-01 reveals the number of group’s bank loan and NABARD refinance from 1992-93 to 2014-15. The formation of SHGs started in 1992-93, in the first year only 255 groups, but it is growing very fast, as per data there are 76.97 lakh groups in 2014-15. In recent years SHGs are very popular, growing rate is very fast, that is 2 to 3 lakh groups have been forming per year in our country.

Almost all groups have the bank linkages, and have been taken loans from banks. It is also increasing according to groups. Bank loan is 0.29 crores in 1992-93, it is increased to Rs. 27582.31 crores in 2014-15. And refinanced by the NABARD is Rs. 0.27 crores in 1992-93 and Rs. 4493.67 crores in 2014-15 likewise number of groups, loan from banks and refinance by the NABARD are increasing year by year. It includes the importance of the SHGs.

AGE WISE CLASSIFICATION OF SHG-MEMBERS:

TABLE No.–02 Age wise classification of SHG-Members

Age (years)

Number of Respondents

Total

Hubli

Dharwad

20-25

38 (51.35)

(7.60)

36 (48.65)

(07.20)

74 (100.00)

(07.40)

26-30

69 (51.11)

(13.80)

66 (48.89)

(13.20)

135 (100.00)

(13.50)

31-35

80 (53.33)

(16.00)

70 (46.67)

(14.00)

150(100.00)

(15.00)

36-40

94 (43.93)

(18.80)

120 (56.07)

(24.00)

214 (100.00)

(21.40)

41-45

106 (55.21)

(21.20)

86 (44.79)

(17.20)

192 (100.00)

(19.20)

45 and above

113 (48.09)

(22.60)

122 (51.91)

(24.40)

235 (100.00)

(23.50)

Total

500 (50.00)

(100.00)

500 (50.00)

(100.00)

1000 (100.00)

(100.00)

Source: Field survey.

Note: Figures in parenthesis right and below to the figures indicate percentages to respective row and column totals.

The Table No.-02 revealed that the Age wise classification of SHG members out of total sample of SHG members 23.50 percent of total respondents were in the age group of 45 and above where as 19.20 percent were in the age group of 41-45, 1.240 percent were in the age group of 36-40, whereas about 13.50 percent and 15.00 percent of respondents were in the age group of 26 to 335 years but study reveals that only 07.40 percent respondents are falling in the age group of 20–25 years.

The domination of younger age group is Unfavourable in terms of adoption of progressive ideas, creativity and building financial capacity in both Hubli and Dharwad cities. The study shows major domination of 45 and above age group members. It is very encourageable and motivation factor for other general public.

FAMILY WISE DISTRIBUTION OF SHG MEMBERS:

The Table No.-03 Reveals that the family wise classification of SHG members in Hubli Dharwad city out of total sample respondents 40.30 percent are the part of nuclear families, where as 59.70 percent of respondents are enjoying the benefits of joint families, thus the above study reveals that major portion of the members are from joint families to improve the economic and financial condition and it is mainly due to the economic independence. However, it shows that more number of nuclear families of SHG respondents is from Hubli i.e. 70.22 percent comparatively 29.78 percent is from Dharwad. Similarly more number of joint families of SHG respondents is from Dharwad i.e. 63.65 percent comparatively 36.35 percent respondents are from Hubli.

TABLE No.-03 Family wise distribution of SHG-members

Type of Family

Number of Respondents

Total

Hubli

Dharwad

Nuclear Family

283 (70.22)

(56.60)

120 (29.78)

(24.00)

403 (100.00)

(40.30)

Joint Family

217 (36.35)

(43.40)

380 (63.65)

(76.00)

597 (100.00)

(59.70)

Total

500 (50.00)

(100.00)

500 (50.00)

(100.00)

1000 (100.00)

(100.00)

Source: Field survey.

Note: Figures in parenthesis right and below to the figures indicate percentages to respective row and column totals.

HOUSE OWNERSHIP OF SHG-MEMBERS:

The Table No.-04 throws light on the type of ownership of house of sample respondents before and after joining the SHGs. The study reveals that in Hubli city 60.40 percent of respondents has their own house, while 27.00 percent are in rented house, and 12.60 percent were living in leased house. But before joining the SHGs the position was 45 percent, 40 percent and 15.00 percent, and there is no government support.

Where as in Dharwad after joining SHGs 48.40 percent are having their own house, while 49.60 percent and 01.60 percent of respondents are living in rented and leased houses whereas 0.40 respondents are living in government provided houses. But the position of same respondents before joining SHGs were as 41.80 percent, 48.40 percent and 09.80 percent respectively in Dharwad SHG members.

It is clearly indicates the economic conditions of SHG respondents, and their improved life style or improved standard of living after joining the SHGs. After undertaking the income generating activities by respondents directly or indirectly financial changes will occurred which leads economically upgrading their living practices.

ACTIVITIES OR OCCUPATION OF SHGS MEMBERS:

Distribution of respondents on the basis of occupation indicates that every group of SHG we find different activities among members. Where house wives come out to support financially to their family. It is difficult for them to manage both job/work and home simultaneously, so they start business at home which helps to manage home as well as job properly, and some members initiate their business out of home.

The members of SHGs are involved in number of activities namely small business, handlooms, tailoring, horticulture, teachers and factory work, milk business and painters etc are the major production activities for which loans were obtained through SHGs.

The Table No.-05 reveals that the different occupations of SHG members involved out of total samples in Hubli and Dharwad cities, majority of respondents are involved in the activities of tailoring, servants, milk business, beedi rolling, and roti business. Out of total sample 08.90 percent and 11.50 percent respondents’ occupation is tailoring and milk business, where as 08.30 percent and 05.20 percent members’ occupation is servants and they are opened small kirani shop. Others like milk business 11.50 percent, teachers 09.80 percent, cloth business 09.50 percent horticulture 00.30 percent etc, thus SHGs helps women to develop in the field economically as well as financially by generating employment.

Thus the hypothesis proved that “SHG programme is one of the employment generating programmes among women”.

TABLE No.-05 Occupational distribution of SHG-Members

Type of Activities

Number of Respondents

Total

Hubli

Dharwad

Teachers

40 (40.82)

(08.00)

58 (59.18)

(11.60)

98 (100.00)

(09.80)

Milk business

42 (36.52)

(08.40)

73 (63.48)

(14.60)

115 (100.00)

(11.50)

Cloth business

57 (60.00)

(11.40)

38 (40.00)

(07.60)

95 (100.00)

(09.50)

Roti business

80 (62.50)

(16.00)

48 (37.50)

(09.60)

128 (100.00)

(12.80)

Tailoring

48 (53.93)

(09.60)

41 (46.07)

(08.20)

89 (100.00)

(08.90)

Kirani shop

29 (55.77)

(05.80)

23 (44.23)

(04.60)

52 (100.00)

(05.20)

Servants

39 (46.99)

(07.80)

44 (53.01)

(08.80)

83 (100.00)

(08.30)

Factory worker

27 (55.10)

(05.40)

22 (44.90)

(04.40)

49 (100.00)

(04.90)

Handlooms

02 (28.57)

(00.40)

05 (71.43)

(01.00)

07 (100.00)

(00.70)

Fruit business

33 (49.25)

(06.60)

34 (50.75)

(06.80)

67 (100.00)

(06.70)

Horticulture

03 (100)

(00.60)

03 (100.00)

(00.30)

Painters

14 (45.16)

(02.80)

17 (54.84)

(03.40)

31 (100.00)

(03.10)

Others

89 (48.63)

(17.80)

94 (51.37)

(18.80)

183 (100.00)

(18.30)

Total

500 (50.00)

1000 (100.00)

(100.00)

Source: Field survey.

Note: Figures in parenthesis right and below to the figures indicate percentages to respective row and column totals.

LOAN DETAILS OF SHG MEMBERS:

TABLE No.-06 Loan details of SHG-members

Loan amount

Number of respondents

Total

Hubli

Dharwad

Less than 5000

209 (50.48)

(41.80)

205 (49.92)

(41.00)

414 (100.00)

(41.40)

5001 to 10,000

114 (43.68)

(22.80)

147 (56.32)

(29.40)

51 (100.00)

(26.10)

10,001 to 20,000

156 (55.71)

(31.20)

124 (44.29)

(24.80)

280 (100.00)

(28.00)

20,000 and above

21 (4667)

(04.20)

24 (53.33)

(04.80)

45 (100.00)

(04.50)

Total

500 (50.00)

(100.00)

500 (50.00)

(100.00)

1000 (100.00)

(100.00)

Source: Field survey.

Note: Figures in parenthesis right and below to the figures indicate percentages to respective row and column totals.

The credit demand was assessed based on the needs of the members. The members unanimously decided about the loan to be sanctioned. The interest rate is 2 percent shall be charged the common fund pooled by the SHG members through savings; working capital loans from bank loans comprised the lendable resources of the group.

The above table No.-06 shows that the 41.40 percent respondents borrowed less than the Rs 5000 i.e. Rs 3000, Rs 4000, Rs 5000 and So on, 26.10 percent members are borrowed Rs 5001 to 10,000, only 28.00 percent and 04.50 percent members are borrowed the loan amount of Rs 10,001 to 20,000 and more than Rs 20,000 both in Hubli and Dharwad.

LOAN PURPOSE OF SHG–MEMBERS:

The institutional sources usually lend only for productive purpose. However micro-finance is designed to meet consumption needs of the members. Thus the members had availed loan from the group fund for both productive and consumption or economic and domestic purpose.

The table No.-07 reveals that out of the total respondents 14.10 percent SHG members borrowed loan for their domestic purpose rather than economic activity, and 85.90 SHG members borrowed loan for the purpose of economic activity or productive.

TABLE No.-07 Loan purpose of SHG-Members

Purpose of loan	Number of respondents		Total
Purpose of loan	Hubli	Dharwad	Total
Domestic	58 (41.13) (11.60)	83 (58.87) (16.60)	141 (100.00) (14.10)
Economic	442 (51.46) (88.40)	417 (48.54) (83.40)	859 (100.00) (85.90)
Total	500 (50.00) (100.00)	500 (50.00) (100.00)	1000 (100.00) (100.00)

Source: Field survey.

Note: Figures in parenthesis right and below to the figures indicate percentages to respective row and column totals.

CONCLUSION:

The present study has observed that involvement of the members in the group activities significantly contributed to improvement in their economic and financial status and improving their skills. In this study an attempt is made on the role of micro-finance in SHGs on economic and financial status of women and background of SHGs members here we explain about the general information of SHGs members and as well as about the operational mechanism of SHGs.

The above explanation we conclude that SHGs is the main path for the women to improve or develop their role in the society. SHGs programme is one of the income generating and employment generating programme. The above said or the members of self-help group reported they gain prestige, self respect, self confidence, saving enhancement programme etc. it is one of main programme to promote employment among women folk and develop collective leadership, collective decision making among women and improve their standard of living by strengthening economically and financially through providing loan for income generating activities. Finally it is the group activities significantly contributed to boosting their self-confidence and improving their role in the society.

REFERENCES:

1. Haridoss, R and Fredrick, J (2008): “Empowerment of Women through Self-Help Groups in Madurai District-An Empirical Analysis”, Emerging Dimensions in Self-Help Groups, Pp 81-97; Dominant publishers and distributors ed. N Mukundan and M Hilaria Soundari, New Delhi-110002.

2. Henriques, E J and Gaonkar, R R (2011): “Micro Credit: A Study of Micro Credit Usage by Self-Help Group members in Goa”, International Journal of Research in Commerce, Economics and Management, Vol. No. 1 (2011) Issue No.3 (July) Pp 56-60.

3. Krishna, S (2006): “Selp-Help Groups: Some Insights” in (eds) Sridhar Krishna Self-Help Group: In the Context of Microfinance, Pp 03-13, IUP Publishing.

4. Mahesha, V and Akash, S B (2011): “Micro Finance and Self-Help Groups-An Exploratory Study in Shivamoga District”, International Journal of Research in Commerce, Economics and Management, Vol. No. 1 (2011) Issue No. 3 (July) Pp 87-91.

5. NABARD micro finance for SHG Dept,Website:www.nabard.org

6. Panwar, A S (2006): “Self-Help Groups-Successes in Vellore Region in Tamil Nadu” in (eds) Sridhar Krishna, Self-Help Group: In the Context of Microfinance, Pp 94-107, IUP Publishing.

7. Pillai, Vijayachandran B and Harikumar V (2006): “Self-Help Groups in Kerala-An Evaluation”, in (eds) N. Mukundan and M. Hilaria Soundari Kurushetra, Emerging Dimentions in Self-Help Groups, Dominant Publishers and Distributers, New Delhi, Pp. 7-14.

8. Ramlingam, A and Dharmaraj S (2008): “Microfinance and Self-Help Groups-An Overview”, Emerging Dimensions in Self-Help Groups, Pp 169-176; Dominant publishers and distributors ed. N. Mukundan and M. Hilaria Soundari, New Delhi.

9. Soundari, M H (2008): “Self-Help Groups-At The Cross Roads” Emerging Dimensions in Self-Help Groups, Pp 51-62; Dominant publishers and distributors ed. N. Mukundan and M. Hilaria Soundari, New Delhi.

10. Various issues of progress of SHG- bank linkages in India, NABARD, Mumbai.

11. Women and child development welfare, Dharwad as on 31-11-2015.

Received on 24.03.2018 Modified on 24.04.2018

Asian Journal of Management. 2018; 9(3):1129-1134.

DOI: 10.5958/2321-5763.2018.00181.6

Type of Ownership	Hubli				Dharwad
Type of Ownership	Before	Percentage	After	Percentage	Before	Percent age	After	Percent age
Own	225	45.00	302	60.40	209	41.80	242	48.40
Rented	200	40.00	135	27.00	242	48.40	248	49.60
Leased	75	15.00	63	12.60	49	09.80	08	01.60
Govt. provided	-	-	-	-	-	-	02	00.40
Total	500	100.00	500	100.00	500	100.00	500	100.00