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Scope for Self-Help Groups to Graduate into Microenterprises

Technical Report · July 2011

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 PROJECT REPORT
STUDY ON SCOPE OF MATURE SELF HELP GROUP’s TO GRADUATE INTO
MICROENTERPRISE

By:

Syed Iliyas Basha

SUMMER INTERNSHIP
PGDM – BIF (2010-12)
Under the guidance of
Emmanuel V Murray
General Manager NABARD
APRO Hyderabad

Submitted To:

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

A.P.R.O, HYDERABAD.

i
 INSTITUTE OF PUBLIC ENTERPRISE
HYDERABAD

ACKNOWLEDGEMENT

I would like to extend my sincere thanks to the management of NABARD, especially to Mr. P.
Mohanaiah, the Chief General Manager (CGM), APRO and Mr. E.V. Murray, General Manager, APRO for
providing me the opportunity to take up the study, which has been a fabulous exposure and great
learning experience.

I would like to express my gratitude to Mr. E.V. Murray for his constant follow-up and valuable
suggestions provided throughout. He has always been an ever lasting source of inspiration and
guidance.

I would also like to express my earnest gratitude and thanks to my project guide Mr. M. Praveen Kumar,
AGM, APRO for his constant guidance and valuable suggestions during the study period. He has put a
conscious effort in undertaking and completing this project.

I am also indebted to Mr. Pawan Kumar, NABARD, APRO for his constant help during the study period.

I am also thankful to Mrs. Nanditha Sethi, Faculty guide, IPE, Hyderabad for his valuable suggestions and
constant guidance.

I am also thankful to all those officers of NABARD, officials and grassroot workers of DRDA Department
and also Chairman, Chaitanya Godavari Grameena Bank with whom I interacted during the course of
the project, for offering their valuable support and kind co-operation during the course of the project.

I also thank Mr. S.M.Sulaiman Basha, District Offiicer and Asst.Director of Sericulture, Guntur and also
all the respondents who have given their valuable time, views and authentic information for this project.

ii
The report is the contributions of numerous people- too many to mention individually, I thank all those
numerous who have contributed in their own way in driving this project to success.

Syed Iliyas Basha

EXECUTIVE SUMMARY

Title: “Study on scope of Mature SHGs to graduate into microenterprises”.

Organization: NABARD
Reporting Officer: Mr. E.V.Murray.
Project Guide: Mr. Praveen kumar.
Faculty Guide: Ms. Nandita sethi.
Student Name: Mr. Syed Iliyas Basha.

Objective:

1. To find the scope of activities which are feasible for SHG’s to graduate into
microenterprises.
2. To know what kind of support is required for SHG to form an enterprise.
3. To study the problems faced by SHG’s to graduate into microenterprises.
4. To know the impact of MEDP programs on SHG’s.

Scope:
The study was carried out in 14 villages Guntur districts. Besides many offices of government,
DRDA, NGO’s and banks were also covered for concrete and flawless study.

iii
Methodology:
An exploratory study was done on the socio economic condition of Self Help Groups that is
involved in tailoring to streamline the research design and draw up the questionnaire. Mature SHGs who
have availed loan from the banks for more than twice, Banks with whom SHG’s are linked with, NGO’s,
officials and grass root workers of DRDA department were interviewed with the help of a structured
questionnaire.

Sources of Data:
Primary Source

1. Mature SHGs who availed bank loan more than twice and banks managers with whom these
SHG’s are been linked.

2. Officials and grass root workers like community coordinator of DRDA department and also
officials of Andhra Bank Institute of Rural Development (ABIRD).

Secondary Source

1. Through various websites

2. Through different books, newspapers, articles, journals and magazines.

Major findings
The major findings of the study are:
 75% respondents were in the age group of 18-40 years. 44% beneficiaries were illiterate.
All the beneficiaries were females. 57% beneficiaries were from downtrodden groups
constituting scheduled castes, scheduled tribes, backward castes and minorities.
 Most of the sampled beneficiaries are dependent on external sources to record the books
of accounts i.e. out of total 38 groups, 24 groups (64%) are dependent on external sources
and only 14 groups (36%) are maintaining by the members within the group.
 The Groups are maintaining books like minute’s book, ledger, cashbooks, passbooks and
attendance registers. The member’s in-charge of accounts is being given training in
bookkeeping by the community coordinator or village book keeper. And the member who
iv
 is in-charge of recording the books will be paid an honorarium by the other group
members.
 So far as the frequency of group meetings are concerned, it is observed that first week of
every month meetings were the most common. In villages like lemalle and Mamallapalli
the group members have kept penalties of Rs 100 for the members who are absent for the
meetings.
 It is found that the operational efficiency and group dynamics of the SHG is not same in
all villages. This could be attributed to several factors like background of SHG formation,
internal problem, support provided by the promoters, effective leadership, etc.

 In Mamallapalli village most of the SHG’s are doing the activities of dairy and crop
production by taking the land for lease from landlords but due to the impact of inflation
and rise in prices for all the commodities, lease rate were also increased thus making it
difficult for the groups to adjust with the present TFI limit of rupees 5 lakhs.

 30% of the SHG’s i.e. 11 groups out off total 38 sampled groups interviewed during the
study have availed financial assistance from the SHG federation and all the sampled
groups (100%) are the members of the SHG federation in their respective villages.

 Beneficiaries were facing problems in order to graduate themselves into microenterprise,

majorly due to reasons of Lack of group cohesiveness (15.6%), Dual responsibility
(13.8%), in the field of Marketing (12.5%), Lack of entrepreneurship (12%), Risk
(11.3%), Technology (10.6%), Value chain & Awareness both (8.1%), Skill and
knowledge (4.4%) and Finance (3.8%).
 The activities taken up with the loan by the members are as follows :
a. To meet their self needs
b. Purchase of inputs for agriculture crops
c. Construction of house/Indiramma housing/Individual toilets
d. Purchase of buffalows/miltch animal.
e. Business like grocery shops, cloth shop, auto rickshaw , fruit shop, dairy,
v
 tailoring, pickle making, used plastic bags conversion to cloth for drying
/covering agriculture produce etc.
 Bapatla, Nizampatnam, Repalle the sea coast villages where SHG’s are doing wet and dry
fish procurement and marketing.
 At the time of the study, training is been given by ABIRD, on the activities like Fabric
painting, soft toy making, pottery works, bouque making etc in komaripudi and pratipadu
villages of Narasaraopeta division.
 Out of the total 38 SHG’s interviewed, 31 SHG’s are been trained in orientation
programme given by banks and out of the total 175 members, only 49 members have
attended the Income Generating Activity like soft toy making, fabric painting, pottery
making and bouque making etc in komaripudi and pratipadu villages by ABIRD.

Recommendations & Suggestions

 The SHPIs (Self Help Promoting Institutions) like DRDAs and NGOs have thus a dual role to
play. Not only should they facilitate the availability of credit from the formal sector to the self
help groups, they should also help the self help groups to identify suitable products which they
can manufacture and sell.
 Marketing facilities for the sale of products of SHG should be facilitated by either DRDA or
NGO’s. Periodical exhibitions at village-level may be organized where the products of SHG can
be displayed.
 SHGs should be organized into federation for collecting the products from beneficiaries and to
tag them to corporate house, wholesaler, retailer, rural Mart etc. Interlinking of Rural Mart
need to be attempted for supply chain management.
 One suggestion for better marketing is to promote the products of one SHG among other SHG
members. Product of one SHG should be distributed to other SHG members through
federation in the beginning, which later can be widened to all SHG members of district/State.
Thus, it should be ensured that the product of SHGs would have wider demand and
marketability
vi
 For about 22% of the sampled beneficiaries
are involved in the Animal husbandry
activity in Guntur district and most of them
are engaged in dairy activities, thus scope
for dairy is high and Government, DRDA
officials and NGO’s should facilitate these
SHG to be motivated and support to be
given to them to establish a dairy plants, collection centers and chilling units. Milk units can be
established by solar hybrid milk chiller which enables food suppliers to store and preserve
perishable food items—such as milk, fruits and vegetables—without the need for expensive
diesel-powered generators. Still furthers studies need to be done to know the exact benefits to
the SHG’s.
 In order to make full use of the microfinance and ensure the success of micro-enterprises, the
project management should understand that all SHG members need not/cannot start a micro-
enterprise at the outset. Some, who are able to take risks, should start first and offer wage
employment to other SHG members. Entrepreneurs need to have some behavioural
competencies like taking initiative, having vision, planning, seizing opportunities, taking
risks, making decisions, solving problems, collecting information, perseverance, time and
quality consciousness, etc. SHG members often shy away at the beginning but are able to
develop these competencies over a period.
 Additionally, the SHG members must be given guidance on the opportunities available in their
surroundings. Let us assume that an SHG member shortlists five business opportunities. The
SHG member may thereafter be asked to conduct a market survey, wherein the customers’
needs or expectations and the competitors’ weaknesses are mapped and looked into. This
process helps us to further zero in on the options.
 Active intervention by district administration, professional bodies and voluntary organisations is
precondition for the successful conception of micro enterprises in terms of skill training,
designing products, providing new technology and access to market.

vii
 TABLE OF CONTENTS

Acknowledgment ……………………………………………………………….. ii

Executive Summary ………………………………………………………. iii- vii

List of Table ……………………………………………………………… x - xi

List of Graphs ………………………………………………………………… xii

List of Exhibits ………………………………………………………………. xiii

Chapter 1: Introduction …………………………………………………… 1 - 5

Micro finance across the globe - with India playing a vital role ………….......1
Micro credit – A novel approach of banking with poor ………………………... 2
Approach to Micro finance …………………………………………………… 2
Three official second tier institutions, which on-lend to specialist MFIs ……….. 4
Major Milestones in India …………………………………………………….... 5

Chapter 2: Origin of SHG in India ……………………………………… 6 – 27

Concept of Self Help Group……………………………………........................ 11

SHG Mechanism ………………………………………………......................... 12

What could be considered as indicators of a good SHG? ……………….… 13

What is Unique about the SHGs and Linkage Program? …….............................. 14

Self Help Group movement in Andhra Pradesh ……………………………… 20

Profile of Self Help Groups in Guntur district ………………………………….24

Specific Objectives of the study …………………………………………… 27

viii
Chapter 3: Research Methodology ……………………………………… 28 - 33

Selection of Study Area and Sample Units .......................................................... 28

Tools and Techniques Used for Data Collection ………………………………. 29
Data Collection and Analysis............................................................................. 30

Chapter 4: District profile – Guntur..................................................... 31 - 33

Chapter 5: Data Interpretation and Analysis …………………………. 34 – 62

Profile of the Self Help Groups (SHG’s) ………………………………………. 35

Problems faced by Self Help Group (SHG) to graduate into microenterprises.... 38

Details of the activities taken up by the SHG members ………………………... 43

Linkage wise details loan availed, repayment status and their internal
accruals of the sampled beneficiaries ………………………………………….. 51

Scope of activities feasible for Self Help Group (SHG) ………………………... 57

Chapter 6: Major Findings, Recommendations & Suggestions ……… 63 - 68

Major finding of the study …………………………………………………… 63

Recommendations & Suggestions for the study ……………………………… 66

Limitations of the study ………………………………………………………. 69

References ………………………………………………………………………. 70
List of Officials Interacted during the Field study……………………..…… 72
Annexure …………………………………………………………………… 73 -92
ix
 LIST OF TABLES

Table Title of the Table Page No.

No.
2.1 Progress of SHGs credit linked during the financial years 7

2.2 Promotional Grant assistance by NABARD to SHPIs 18

2.3 Project components of IKP 22

2.4 Regional spread of SHG movement in Andhra Pradesh 24

2.5 SHPI wise number of groups formed in Guntur district 25

2.6 Socio economic profile of SHG’s of DRDA 25
2.7 Resources of SHG’s 25
3.1 Sampling frame of the study 29

4.1 Age profile of the SHG 37

4.2 Educational status of the beneficiaries 36

4.3 Social group of the beneficiaries. 37

4.4 Problems faced by SHG to graduate into microenterprise 40
4.5 Details of the activities taken up by the SHG members through 43
loan.

4.6 Details of the SHG members who have availed loan for 45
personal purpose

x
4.7 Gross income details of SHG members based on their activities 46

4.8 Book maintenance of SHG’s 47

4.9 Details of training on Orientation to SHGs 48

4.10 Group members who have attended training on IGA’s 48

4.11 Details of Groups who availed loan for third time 51
4.12 Showing the details of groups who availed loan for fourth time 52

4.13 Showing the details of groups who availed loan for Fifth time 53

4.14 Showing the details of groups who availed loan for Sixth time 54

4.15 Showing the details of Groups Loan ,repayment and savings 55

4.16 Showing the details of Groups TOTAL Loan, repayment and savings. 56

4.17 Activities presently taken up the SHG members in the different

mandals of the Guntur district where the study has been
conducted. 57

4.18 Scope of activities that the beneficiaries can take up to form an

enterprise.
58

xi
 LIST OF GRAPHS

Graph Title of the Graph Page No

No

2.1 Progress of SHGs credit linked during the financial years 8

4.1 Distribution of the educational status in pie chart 36

4.2 Distribution of social group of the beneficiaries in column 37

chart

4.3 Problems faced by the SHG to graduate into microenterprises 41

4.4 Bar chart showing the details of the activities taken up by the 44
SHG members through loan

4.5 Details of the SHG members who have availed loan for 45
personal purpose through pie chart.

xii
 LIST OF EXHIBITS

Exhibit Title of the Exhibit Page No.

No.

1.1 Major Milestones in India 5

2.1 SHG Mechanism 12

2.2 Structure of IKP at the district level 23

xiii
 CHAPTER - 1
INTRODUCTION

"If you can run a bank, lend money, and get it back, cover all your costs, and make a profit,
and people get out of poverty, what else do you want?"
Mohammad Yunus, micro-credit pioneer and founder of the Grameen Bank.

Micro finance across the globe - with India playing a vital role

The irrepressible desire and inherent capacity of poor to improve their

living for themselves is considered as the foundation for concept of Micro Credit. Propelled by
the demonstrative success of Bangladesh Grameen Experiment, Micro Credit is acknowledged as
an effective channel to take the poor into a new domain of economic empowerment. Micro credit
movement assumed global advocacy through Micro Credit Summit held in February 1997 at
Washington. The summit representing 1500 institutions and 137 countries is a landmark in the
collective crusade against poverty undertaken by the developed and developing countries
together. The Micro Credit Summit launched a nine-year campaign to reach 100 million of the
world’s poorest families by the year 2005. Micro credit is referred as providing “Credit for self
employment, financial and other business services including savings and technical assistance.

Most of the countries have long-established cooperative movements, including credit

cooperatives. In most countries in South Asia and also in Indonesia, credit cooperatives have
been largely unsuccessful in extending financial services to poor households. Generally, the
cooperative movement includes people of all income levels within a particular village or
community, and does not target the poor. Moreover, management of the cooperative movement
has been inadequate in most countries.

In some countries such as India and Pakistan, a large proportion of cooperatives are reported to
be non-functional, due to financial mismanagement and inability to recover dues. Even where
they are functional, management is often dominated by rural elites, with funds allocated on the

1
basis of patronage rather than needs. Frequently they rely heavily on government funds and are
largely owned and controlled by governments. In India and Pakistan, for instance, state and
provincial cooperative departments have the right to be represented on the board of directors, and
can exert considerable influence on the management of cooperatives. For instance, permission
may be needed to hold elections, invest funds, change their area of operations, use funds from
their reserves, and similar matters. Particularly in India there are very few highly successful
cooperative banks and societies, which are devoted specifically to providing financial services to
the poor, such as SEWA Bank and Working Women’s Forum etc,

Micro credit – A novel approach of banking with poor

Micro – credit is distinctly different from other poverty alleviation

schemes. Loans under micro– credit programs are very small, on an average less than $100 by
world standards and in hundreds of rupees by Indian standards. Micro – credit continues to target
the rural and urban households, with emphasis on women borrowers, provision of finance for
creation of assets and their maintenance and bringing in greater quality of services. The
beneficiaries are identified by micro – credit providers themselves independently or through
NGOs/Self Help Groups/ the repayment period is generally very short. The amount is increased
based on the borrower’s repayment history.
Micro – credit is a novel approach of banking with poor with the
distinct advantages of high repayments of loans and low transaction cost. Various micro –
finance initiatives have gathered pace in the recent years. In Micro – Credit NABARD’s role has
been twofold, viz., promotional and financial. Promotional efforts assume the form of the SHG –
Bank Linkage programme and facilitating training. Financial involvement is in terms of
providing refinance, revolving fund assistance and grants.

Approach to Micro finance:

Over the last decade micro finance has become an accepted
institutional framework for taking financial services to the poor. Micro finance has now evolved
into a type of independent financial system of its own and there are a number of variants in micro
finance institutions and systems. But broadly they can be classified into two—the individual

2
approach and the group approach. An example of the group approach, where the group itself, not
the individual member, is the client, is the self-help group program in India.

In all countries there are wide variety of small, informal savings

and loans groups, such as rotating savings and credit associations (ROSCAs), which operate
informally and are not registered. In at least three countries, these or similar groups have been
institutionalized to some extent by involving them in formal micro finance programs. In India
self-help groups (SHGs) are an integral part of the National Bank for Agriculture and Rural
Development (NABARD) program for linking banks and SHGs. Nevertheless, they are generally
not registered. Under Indian law, SHGs are only required to be registered (as a society, trust or
cooperative) if they have more than 20 members. For this reason, many SHGs restrict their
membership to 20 persons or less. It is also observed in Gujarat and some other parts of the
country that some larger SHGs operate informally and are not registered.

The purpose around which an SHG is initially formed varies depending

on the kind of program being implemented and the need for collective working. It varies from
managing a collective resource to promoting a social cause. In the context of microfinance,
SHGs are formed (and sometimes old SHGs established with another purpose are converted) to
foster savings and credit. A small group of individuals become members and pool their savings
on a regular basis to form a collective fund. This fund is then rotated as credit amongst the
members through a system of self-generated norms. Hence, the basis of the SHG is the mutuality
and trust in depositing individual savings in group funds. Once the initial trust is established, the
incentive or motivation for a member is the access provided to financial services through the
common pool fund, which is higher than the individual’s own savings.

Indonesia has hundreds and thousands of groups engaged in savings and

credit. Some of these are indigenous, based on traditional custom, while others are the result of
action by government agencies, community groups and NGOs to form groups in connection with
various government-initiated microfinance schemes. These include Bank Indonesia’s microcredit
project and program linking banks with self-help groups (PHBK), the income-generating project
for marginal farmers and landless of the Ministry of Agriculture, and the newer mass programs

3
(IDT and Prosperous Family program). There is no provision for registration of SHGs, nor are
they regulated except in the context of the particular government program from which they arise.

Similarly in Thailand, some of the community organizations involved

in the microfinance programs of the Government Savings Bank (GSB) and Urban Community
Development Office(UCDO) are registered as cooperatives. However, most are unregistered and
operate informally. For instance, figures from UCDO show that of the 385 members with savings
activities, only 66 are legally registered as cooperatives while the other 319 are not registered
and operate informally.
Moreover, in most countries the cost of subjecting MFIs to full
prudential regulation and supervision would be prohibitive. In Bangladesh, for instance, there are
around 1,000 NGOs involved in microfinance. And while MFIs in other countries do not have
nearly the same outreach as in Bangladesh, the number of MFIs is not necessarily less. In India
there are perhaps as many NGOs engaged in microfinance as in Bangladesh, plus some 90,000
primary agricultural credit societies and thousands of self-help groups. In the Philippines, there
are some 500 MFIs reaching a combined total of only 30,000 borrowers. In Thailand there are
more than 1,500 community organizations engaged in microfinance.

Three official second tier institutions, which on-lend to specialist MFIs.

In India, there are at least three official second tier institutions,

which on-lend to specialist MFIs. However, none of them imposes rigorous performance and
reporting standards. The second tier institution with the largest lending program is Rashtriya
Manila Koch (RMK). For a partner organization to borrow from RMK, it should have at least
three years experience in thrift and credit administration, a 90 per cent recovery performance
during the last three years (in practice, RMK generally accepts a recovery rate in the range of 80
to 90 per cent), satisfactory funds management and financial performance, and a good track
record of work in the socioeconomic field. These requirements are all quite general in nature.
There are also a number of requirements relating to loans by the partner organizations to
individual borrowers. Further, partner organizations are supposed to maintain 10 per cent of the
loan provided by RMK as reserves, but this is not strictly enforced.

4
 NABARD as a part of its mandate initiated certain research
projects on SHGs as a channel for delivery of micro-finance in the late eighties. Amongst these,
the project sponsored by the Mysore Resettlement and Development Agency (MYRADA) on
“Savings and Credit Management of SHGs” was partially founded by NABARD in 1986–87. In
1988–89, in collaboration with some of the member institutions of the Asia Pacific Rural and
Agricultural Credit Association (APRACA), NABARD undertook a survey of 43
nongovernmental organizations (NGOs) in 11 states in India, to study the functioning of
microfinance SHGs and their collaboration possibilities with the formal banking system
(NABARD, 1991). Both these research projects produced encouraging possibilities, and
NABARD initiated the pilot project called the SHG linkage project in 1992. NABARD also held
extensive consultations with the Reserve Bank of India. This resulted in issuing a policy circular
to all commercial banks to participate and extend finance to SHGs (RBI, 1991). NABARD also
issued a broad set of flexible guidelines in February 1992 (NABARD, 1992) to the formal rural
banking system, explaining the project’s modalities. The project was extended to the regional
rural banks and co-operative banks, in addition to the commercial banks in 1993.

SOURCE: History and spread of the self-help affinity group movement in India The role played by IFAD by
Aloysius P. Fernandez, Executive Director, MYRADA

Exhibit 1.1: Major Milestones in India:

Major commercial NABARD established Establishment of

banks nationalized as an apex agency for SIDBI foundation
rural finance for Micro credit
1975 1992 2010
1999 1999 1999

999 999 999

1969 Regional rural 1982 NABARD launches 1999 Proposed bill on

999 banks established 1999 SHG bank linkage 1999 microfinance
in 999 program. 999 regulation.

5
 CHAPTER - 2
ORIGIN OF SHG’s IN INDIA

In 1976, Prof. Mohammed Yunus of Bangladesh started women’s groups in

Bangladesh and developed thrift and savings among the poorest. Now it has developed into a
bank named Bangladesh Grameen Bank (BGB). Its report in February 1998 states that the bank
has 1138 branches and covers 39572 villages. It has 2367503 members of which only 124571 are
men. The bank has disbursed a cumulative amount of US $ 2714.61 Million whereas the savings
of the members has reached US $ 202.73 Million.
With the success of BGB and similar organisations elsewhere, the concept of
Micro credit has gained momentum in India. Based on this success many Non-Governmental
Organisations (NGOs) in our country are involved in organising SHGs and they serve as an
agent between the bank and the poor. Self- help groups (SHGs) play today a major role by
creating women empowerment in rural India. A growing number of poor people (mostly women)
in various parts of India are members of SHGs and actively engage in savings and credit, as well
as in other activities (income generation, natural resources management, literacy, child care and
nutrition, etc.). The Savings and credit focus in the SHG is the most prominent element and
offers a chance to create some control over capital, albeit in very small amounts. The SHG
system has proven to be very relevant and effective in offering women the possibility to break
gradually away from exploitation and isolation.

It was observed that the poor tended to come together in a variety of informal
ways for pooling their savings and dispensing small and unsecured loans at varying costs to
group members on the basis of need. The SHG – Bank Linkage Programme was started as an
Action Research Project in 1989 which was the offshoot of a NABARD initiative during 1987
through sanctioning Rs. 10 lakh to MYRADA as seed money assistance for experimenting Credit
Management Groups. In the same year the Ministry of Rural Development provided PRADAN
with support to establish self-help groups in Rajasthan.

The experiences of these early efforts led to the approval of a pilot project by
NABARD in 1992. The pilot project was designed as a partnership model between three
6
agencies, viz., the SHGs, banks and NGOs. This was reviewed by a working group in 1995 that
led to the evolution of a streamlined set of RBI approved guidelines to banks to enable SHGs to
open bank accounts, based on a simple “interse” agreement. This was coupled with a
commitment by NABARD to provide refinance and promotional support to banks for the SHG -
Bank Linkage Programme.
The guiding spirit behind NABARD’s microfinance initiatives has the following contours:

● Offers cost effective approaches to formal institutions for expanding

outreach to poor.
● Develop collateral substitutes.
● Focus on rural poor, especially women.
● Facilitate empowerment of the poor and
● Effectively pursue the macro-economic objectives of growth.

Initially there was a slow progress in the programme up to 1999 as only 32,995
groups were credit linked during the period 1992 to 1999. Since then the programme has been
growing rapidly and the number of SHGs financed increased from 81,780 in 1999-2000 to more
than 12.27 lakh in 2007-08 and 16.09 lakh in 2008-09 (table below).
Table 2.1, progress of SHGs credit linked during the financial years
Year No. of SHGs financed Cumulative no. of
during the year (in SHGs financed (in
lakh) lakh)
2001-02 2.39 5.02
2002-03 2.55 7.57
2003-04 3.61 11.18
2004-05 7.97 19.15
2005-06 9.64 28.79
2006-07 11.05 39.84

2007-08 12.27 52.11

2008-09 16.09 68.2

Source: NABARD

7
 Graph 2.1, Progress of SHGs credit linked during the financial years

In India the pioneer in this field is Self-Employed Women's Association

(SEWA). It was started in 1972. Though started as a trade union for women in the unorganised
sector, today SEWA boasts of running the first Women's Bank in the country. By the year 2000
SEWA has a membership of 209250. The SEWA Bank has 87263 depositors and 41757
borrowers whose loan outstanding Rs.887 lakhs as on March 1998. SEWA has also networked
many co-operatives and emerged as the largest federation of co-operatives in the country.

Organizations in Southern India like PRADAN (Professional Assistance

for Development Action), MYRADA (Mysore Resettlement and Development Agency),
ASSEEFA ( Association for Sarva Seva Farms), MALAR (Mahalir Association for Literacy,
Awareness & Rights) etc. have entered into this rural credit system. PRADAN has a membership
of 7000 women who have availed 40,000 loans worth Rs.2.7 crores as on March 1997.
MYRADA has 62769 members who have saved RS.48 lakhs and availed loan to the tune of
Rs.2.90 crores. MALAR has a membership of 15000 women who have saved RS.86 lakhs and
availed loan to the tune of Rs.2.23 crores.

8
 NABARD refinances the banks, which lend to SHGs. As per NABARD's
Annual Report 1998-99, banks have financed 30447 SHGs with a finance of Rs.53 crores as on
31st March 1999. The repayment is excellent. The Finance Minister in his budget speech in the
year 2000-01 has asked NABARD and SIDBI to increase the number of SHGs to 1, 00,000.
Even this number will be minuscule as it will cover only 20, 00,000 people in our country which
has nearly 38 crores of people below poverty line. Mahalir Association for Literacy, Awareness
& Rights (MALAR) has emerged as a new self-reliant model for our nation. An offshoot of the
Total Literacy Campaign in Kanyakumari District, MALAR has emerged as an organisation of
poor women who share the interest income to sustain a full time structure, office and training\
schedule. This has kindled a new hope. Already 10 districts in Tamilnadu have undergone
training at MALAR and started similar organisations for micro-credit. Revamping of the rural
credit system has already started. The banks Regional Rural Banks, Co-operatives and SHGs
linked with Non-Governmental Organisations (NGOs) have a role to play. There is need for
closer study to support the system. So that, the country can eradicates poverty at least in the
beginning of the next millennium. NABARD introduced a Pilot Programme for starting and
lending to SHGs in 1992 based on the experience of BGB and MYRADA.

NABARD also provides training support, Grant cum Aid support

for micro credit under it's different schemes. SIDBI has entered this field late but now SIDBI has
formed a Micro-credit foundation, which gives loans to NGOs after rating them by an external
agency. The minimum loan is Rs.50 lakhs and it is to be used only for micro enterprises.

Rashtriya Mahila Kosh - an organisation promoted by Govt. Of

India also gives direct loans to NGO's for on lending with incentives for proper repayment. All
Banks including co-operative Banks and Private Banks lend to SHGs based on their savings at
the ratio of 1:1 initially and this can go upto 1:4. World Bank and IMF have found a way to
reach the poor through NGOs and they see this as an opportunity to reduce poverty and also to
prevent the poor from agitation because of the ill effects of their Economic policies.

The Government of India, which is under IMF and WB guidance, has launched
schemes Scrapping Integrated Rural Development Programme, Scheme for Urban

9
Microenterprises, Prime Minister’s Urban Poverty alleviation programme and TRYSEM. The
Schemes are known as
(1). Swarnajayanthi Gram Swarozhar Yojana – SGSY.
(2).Swarnajayanthi Sahahari SwaRozhar Yojana – SJSRY

The former is for Gram Panchayats and the latter for Town Panchayats, Municipalities and
corporations. According to this scheme, the Panchayats will select the good group with
assistance from BDO, Bank and NGOs and provide Rs.10000/- as revolving fund -
Free of Interest and then banks will provide loan to the group - seeing the performance. There is
an individual subsidy of 30% for those who do individual enterprises and 50% subsidy for Group
enterprises.

After the Micro Credit summit held at Washington WB, IMF and many foreign
funding agencies have directed their projects towards micro-credit. Now Govt. of India has also
directed CAPART and other funding agencies to focus on micro credit because of which all
NGOs are running after people to form as a SHGs so that they can get funds.
Thus a slow and steady SHG movement started during 1990s in India truly representing the
concerns of the poorest of the poor.

10
  Concept of Self Help Group

Self-Help Group (SHG) is a small

voluntary association of poor people, preferably
from the same socio-economic background. They
come together for the purpose of solving their
common problems through self-help and mutual
help. The SHG promotes small savings among its
members. The savings are kept with a bank. This
common fund is in the name of the SHG. Usually, the number of members in the SHG does not
exceed twenty.

The SHGs comprise of poor people who do not have access to formal
financial institutions. They act as the forum for the members to provide space and support to
each other. It also enables the members to learn to cooperate and work in a group environment.
The SHGs provide savings mechanism, which suits the needs of the members. It also provides a
cost effective delivery mechanism for small credit to its members. The SHGs significantly
contribute to the empowerment of poor women. Creation of SHGs can be done by Non
Governmental Organizations (NGOs) Social Workers, health workers, village level workers, etc
Informal Associations of local people Development oriented government departments Banks
Bank personnel and other individuals.

The mechanism of how the SHGs are formed from electing the
president within the group, initial regular thrift savings, regular meeting and all the way to open a
bank account. Thus the following is been presented in the below figure:

11
Exhibit 2.1: SHG Mechanism.

The SHG-bank linkage program is targeted to reach the poorest sections, which are bypassed by
the formal banking system. Therefore, it is essential that only the poor be considered as the target
group for the SHG -bank linkage program. An SHG can be all-women group, all-men group, or
even a mixed Group. However, it has been the experience that women's groups perform better in
all the important activities of SHGs. Mixed group is not preferred in many of the places, due to
the presence of conflicting interests.

As soon as the SHG is formed and a couple of group meetings are held, an SHG can open a
Savings Bank account with the nearest Commercial or Regional Rural Bank or a Cooperative
Bank. This is essential to keep the thrift and other monies of the SHG safely and also to improve
the transparency levels of SHG's transactions. Opening of SB account, in fact, is the beginning of
relationship between the bank and the SHG. The Reserve Bank of India has issued instructions to
all banks permitting them to open SB accounts in the name of registered or unregistered SHGs.

12
By initially managing their own common fund for some time, SHG members not only take care
of the financing needs of each other, but develop their skills of financial management and
intermediation as well. Lending to members also enhances the knowledge of SHG members in
setting the interest rate and periodic loan installments, recovering the loan, etc.

What could be considered as indicators of a good SHG?

● Homogeneous membership: As far as possible, the membership of an SHG may

comprise people from comparable socio-economic background. Though difficult to
define in clear terms, a major indicator of homogeneity in membership is absence of
conflicting interests among members.
● No discrimination: There should not be any discrimination among members based on
caste, religion or political affiliations.
● Small membership: Ideally, the group size may be between 15 and 20, so that the
members are participative in all activities of the SHG. In a smaller group, members get
opportunity to speak openly and freely. However, the membership may not be too small
that its financial transactions turn out to be insignificant.
● Regular Attendance: Total participation in regular group meetings lends strength to the
effectiveness of SHGs. To achieve this, the SHGs should place strong emphasis on
regular attendance in the group meetings.
● Transparency in functioning: It is important that all financial and non-financial
transactions are transparent in an SHG. This promotes trust, mutual faith and confidence
among its members. Maintenance of books of accounts as also other records like the
minutes book, attendance register, etc., are important.
● Set of Byelaws: The SHG may discuss and finalize a set of byelaws, indicating rules and
regulations for the SHG's functioning and also roles and responsibilities of members. It is
better to have a written set of byelaws. The Self Help Promoting Institution (SHPI) and
bank may guide the SHGs in this.
● Thrift: The habit of thrift (small savings) is fundamental to the SHG and helps in
building up a strong common fund.

13
 ● Utilizing savings for loaning: Once an SHG has accumulated sizeable amount in the
form of savings say for a period of about 3-6 months, the members may be allowed to
avail loans against their savings for emergent consumption and supplementary income
generating credit needs.

What is Unique about the SHGs and Linkage Program?

 Decision making: Members make decisions collectively. SHG concept offers

opportunity for participative decision making on conduct of meetings, thrift and credit
decisions. The participative process makes the group a responsible borrower.

 Financial services: SHGs provide the needed financial services to the members at their
doorstep. The rural poor needs different types of financial services, viz. Savings,
consumption credit, production credit, insurance, remittance facilities etc. The platform
of SHG provides the possibility to converge these services.

 Supplementary to formal banking: SHG linkage does not supplant the existing banking
system, but it supplements it thus taking full advantage of the resources and other
advantages of the banking system.

 Cutting costs: SHG linkage cuts costs for both banks and borrowers. In a study
sponsored by FDC, Australia, it was observed that the reduction in costs for the bankers
is around 40 % as compared to IRDP loans. The poor have a net advantage of 85 % as
compared to individual borrowing. Similar finding was also observed in a NABARD
study

 NPA Savvy: The SHG Bank Linkage mechanism has proved that the repayments are as
high as 95% - 100 %

 Peer pressure as collateral: The SHG linkage emphasizes peer pressure within the
group as collateral substitute.

14
  Quality clients: The SHGs are turning out to be quality clients in view of better credit
management, mobilization of thrift, low transaction costs and near full repayments.

 Client preparation: The members of the SHGs could over a period of time, very
selectively graduate to the stage of micro entrepreneurship and have been prepared with
requisite credit discipline.

 Social agenda : Available statistics indicate dependency of 35%-40% of rural households

on non-institutional sources for credit needs. SHG Linkage offers a better way of dealing
with the magnitude of social agenda. Many NGOs/ Governments have recognized the
SHG as a vehicle for carrying and deepening of their developmental agenda/ delivery of
services.

NABARD Support:

NABARD'S Support for Capacity Building and Loanable Funds

NABARD provides capacity building assistance and financial support to its partners for the
promotion and broad basing of microFinance operations. As part of its efforts to link larger
number of SHGs to the banking system, NABARD also focuses on training and sensitization of
partner agencies, through various interventions.

Liquidity Support to Banks for SHG-bank Linkage

The National Bank continued to provide 100 per cent refinance assistance to banks for financing
SHGs. During 2008-09, Rs.122535.1 million was disbursed as loan to SHGs by various banking
institutions. Banks had availed of refinance to the tune Rs. 26200.3 million from NABARD. As
on 31 March 2009, the bank loans outstanding to the SHGs aggregated Rs. 226798.50 million ,
while cumulative refinance availed of by the banks aggregated Rs. 96880.90 million.

15
Financial Support to Partner Agencies
Promotional Grant Assistance to NGOs to function as SHPIs

NGOs already working in the social sector are encouraged to take up SHG promotion as an "add-
on" activity. This not only helped in complementing the core areas of activities of the
participating NGOs but also reduced overheads costs in formation and nurturing of groups.
NABARD provides a grant assistance of Rs 4500/- to NGOs for promotion and linking of each
SHG. This amount broadly covers training of members of SHG, stationery for the group,
incentive/part salary of NGO staff etc.

Supporting RRBs as SHPIs

In order to widen the spectrum of SHPIs, NABARD assisted five branches of Cauvery Grameena
Bank (CGB), an RRB in Mysore, in the year 1994, to test the feasibility of RRBs themselves
taking on the role of SHPIs. Under this programme, the bank staff at the identified branches were
provided with specific training in promotion, nurturing and financing of SHGs. This experiment
succeeded in grooming RRB staff to form SHGs. Having successfully oriented a few RRBs to
take up the role of SHPIs, it was felt necessary to find ways of reducing the per SHG cost
involved in promotion and nurturing of SHGs by bank staff, if the programme were to be broad
based across the country. Therefore, an alternative module was developed by NABARD,
involving lower cost, to support more RRBs. This module envisages support from NABARD for
training of staff of ten identified branches for each RRB, with provision to partly meet the costs
of awareness building, training and stationery for the SHGs, which are promoted by them.
NABARD provides grant assistance @ Rs2500/- per SHG to RRBs for formation and linkage.

DCCBs as SHPIs
In India cooperative institutions like District Cooperative Central Banks (DCCBs) and Primary
Agricultural Cooperative Credit Societies (PACS) have a long history being in existence for the
past several decades. They have the potential to emerge as major partners considering their
strong presence in rural areas for integrating SHG bank linkage programme in their existing
business activity. NABARD has therefore formulated a scheme for assisting DCCBs to form,
nurture and link self-help groups. NABARD provides grant assistance @ Rs2500/- per SHG to
DCCBs for formation and linkage.

16
Farmers' Clubs as SHPI.

NABARD has been encouraging informal forums called Farmers' Clubs (FCs) to spread the
message of 'Development through Credit' and inculcate the repayment ethics among borrowers.
These clubs also have significant potential to work as SHPIs. Accordingly, a module was
developed to support them to function as SHPIs. The module envisages financial support to
nodal bank branches and FCs for meeting expenditure on (i) awareness building on SHGs among
volunteers and nodal branch staff, (ii) training of identified FC volunteers to work as facilitators
(iii) required stationery for SHGs promoted, (iv) reimbursement of expenditure incurred by the
facilitators in promotion of SHGs, and (v) incentives to the Farmers' clubs for acting as SHPI.

Individual Rural volunteers as SHPIs

In regions of the country, where NGOs are not adequately represented, a special initiative has
been launched by NABARD in the year 2003 to rope in socially committed individual volunteers
like retired and active school teachers, post masters, village elders, anganwadi workers, members
of existing credit linked SHGs etc for formation of self help groups and linking them with banks.
This scheme is being implemented in 20 states of the country through regional rural banks/
district central cooperative banks. Volunteers are provided with grant assistance of Rs 1200/- per
SHG for formation and linking them.

Source: NABARD website.

17
Additional “Promotional Grant assistance for hand holding” at a maximum rate of Rs 500/-
per SHG to NGOs, RRBs, DCCBs and UCBs and Rs 300/- per SHG to Farmers Club can be
sanctioned separately.

Table 2.2: Promotional Grant assistance by NABARD to SHPIs

Sanctions during the

Agency Cumulative Sanctions Cumulative Progress
Year
Amount No of Amount No of Amount No of
No No No
SHGs SHGs SHGs
NGOs 311 1564.29 46504 2318 6405.71 291780 2773.93 214927 134861
RRBs 2 20.70 800 113 389.30 44590 181.16 53595 35942
Co-operative
12 136.92 9465 95 563.13 53875 207.15 40327 22835
Banks
IRVs 6 46.62 2590 66 529.76 31233 52.32 8607 4566
Farmers’ Clubs --- --- --- --- --- --- 61.06 14544 7836
Total 331 1768.53 59359 2592 7887.90 421478 3275.62 332000 206040
Source: NABARD website.

Credit availability and development into microenterprise:

The rural poor may not be able to form groups by themselves to command a sufficient
strength to approach and negotiate with external agencies like banks for funds. With a view
to make thrift and credit activities meaningful for economic empowerment, the groups are
gradually encouraged to deploy their funds in investment or income generating activities.
With all these benefits, as of now the total disbursement of credit is very limited and the per-
household credit made available is very small. If a serious impact on the economic
conditions of the rural poor has to be made, a much larger flow of credit to support a much
broader production base is required. It is towards this objective the SHG-Bank
Linkage Programme need to be taken forward. These groups have to graduate into
promoting micro enterprises. Though micro enterprises are not a panacea for the complex
problems of chronic unemployment and poverty, yet promotion of micro enterprises is a
18
viable and effective strategy for achieving significant gains in income and assets for poor
and marginalized people.

We can thus see the evolution of Self Help Groups at three levels –

 At one level households use microfinance to meet ‘survival’ requirements where

small savings and loans serve as a buffer in the event of an emergency or to
smoothen consumption or even service previous debt to give itself more liquidity
during lean times.
 At the second level, ‘subsistence’ needs are met through microfinance, where a
household begins to utilize microfinance to diversify its basket of income-generating
activities, or to meet working capital requirements in traditional activities.
 At the third level as households reach a stage where they can assume a higher degree
of risk, microfinance would be used to invest in setting up an enterprise or
facilitating entry into employment in one way or the other in order that the household
becomes ‘sustainable’.

19
Self Help Group movement in Andhra Pradesh:

Though Andhra Pradesh (AP) has had a history of people coming together
to extend various financial services, the women’s savings and credit movement gathered
momentum in 1993, in the Nellore district. Here, women had been organized into Mahila
Mandalis during the Total Literacy Campaign. Subsequently these groups spearheaded the
antiarrack (country liquor) movement. This was very successful, eventually leading to imposition
of prohibition in the state. Having achieved that goal, the women’s groups became restless, till
someone suggested that they form themselves into savings and credit or "Podupulaxmi" groups.
Thus Nellore led the way by having over 6,000 such groups in 1996. By March 1999, there were
over 1, 80,000 savings and credit groups in AP.

The members of a savings and credit group (SCG) are usually

neighbours, friends and fellow workers. Women in these groups may not be from the same caste/
community but they have the same socio-economic back ground. These groups also provide an
opportunity for social interaction. The regular obligation to save may be no more than‘glue’
which brings the group together and holds it together providing a base for other important
activities. In some groups, their opportunities for profitable investment are limited due to lack of
skills, markets and opportunities.

The most important government program involving women in

savings and credit is Development of Women and Children in Rural Areas (DWCRA). About 40
percent of the DWCRA groups in the country are in AP. About 15 lakh women are covered
under DWCRA and Rs 150 crores was provided as revolving fund as against a saving of Rs 200
crores by the groups till March 1999.

Source: Savings and Credit Movement of Andhra Pradesh - Lessons for the Rest of India
Sankar Datta and Vijay Mahajan, Basix, dated: Aug 2003.

20
 With government support, particularly from the Rural Development
department with its network of District Rural Development Agencies (DRDAs), and further
support from many active District Collectors, the women’s savings and credit movement is now
widespread. These are known by different names in various local savings groups districts:
Podupulaxmi groups (Nellore, Kurnool), Ananta Mahila Sakti (Ananthpur), Maalaxmi
(Mahaboobnagar), Podupu Jyothi (Ranga Reddy), Samabhavana (Nalgonda), Pragati Laxmi
(Nizamabad), Grama Laxmi (Chittoor), Mahila Sakti (East Godavari) and so on.

Major Initiatives

Some of the major efforts in promotion of savings and credit groups in Andhra Pradesh included:

Government Programs - DWCRA

The DRDA in most of the districts are actively involved in transforming DWACRA groups into
savings and credit groups of women. But the effort does not stop there. Many DRDAs have taken
steps towards continuing support and strengthening DWCRA groups. For example, in
Srikakulam and Nellore districts, the DRDA and NABARD are jointly conducting training
programs for group leaders and bank managers. In Nalgonda district, the DRDA had promoted
2,800 groups in just two months. In Cuddapah district, the DRDA has plans to promote 100-150
village level MACTS, 3,000 new groups and provide tool kits to women in future. Out of the
180,000 Savings and Credit Groups in Andhra Pradesh in March 1999, close to 140,000 were
DWCRA groups.

Government Programs – Special - SAPAP

The state has a special project sponsored by the UNDP. The UNDP has established a South Asia
Poverty Alleviation Program (SAPAP), operating in three districts of AP namely Ananthpur,
Kurnool and Mahaboobnagar. It has promoted over 2,700 groups covering over 42,000 members.
A Village Organisation (VO) has been formed at each village where all the groups in that village
have been federated. All the VOs have been federated as Mandal Samakhyas at the mandal level.

Source: Savings and Credit Movement of Andhra Pradesh - Lessons for the Rest of India
Sankar Datta and Vijay Mahajan, Basix, dated: Aug 2003.
21
Indira Kranti Patham Project (IKP)
The SHG movement took a firm root in the state with the implementation of World Bank
assisted poverty reduction project, Indira Kranti Patham (IKP), a scaled up versions of the
SAPAP model with more focus on livelihood component. The project aims to build strong
institutions of the rural poor and enhance their livelihood opportunities so that the vulnerability
of poor is reduced. IKP consists of two projects, viz, Andhra Pradesh District Poverty Initiatives
Project (APDPIP) and Andhra Pradesh Rural Poverty Reduction Project (APRPRP) and is
implemented in 864 mandals out of a total 1127 mandals in the State. The project has a total
outlay of Rs.21,400 million with 56 per cent of the project outlay meant to support the sub
projects of the poor through Community Investment Fund (CIF). Government of Andhra Pradesh
has decided to cover the entire state under the IKP Programme from the financial year 2006-07
by dovetailing the funds from State Government and Government of India. Society for
Elimination of Rural Poverty (SERP), an autonomous body registered under the Societies
Registration (Telangana) Act, has been established for management of IKP, which is
implemented by SERP through DRDAs at the district level. A large complement of staff
consisting of Community Coordinators, Assistant Project Managers, District Project Managers
have been appointed for managing the project.

Project components of IKP:

Table 2.3 (Rs crores)
S.No Name of the component APDPIP APRPRP TOTAL

1 Strengthening-institutional,social 125.51 135.10 260.61

and human capital

2 Support tosub-projects of poor 360.34 845.40 1205.74

3 Support to pilot programmes 0 40.04 40.04

4 Support to eliminate child labour 133.82 309.47 443.29

5 Support for the persons with 0 60.64 60.64

22
 disabilities

6 Project management, monitoring, 34.32 95.38 129.70

evaluation and other special studies

TOTAL 653.99 1486.03 2140.02

Source: NABARD – Poorest of the poor

Exhibit 2.2: Structure of IKP at the district level:

Note: MBK - Mandal Book Keepers, VBK- Village Book Keepers

23
 Table 2.4: Regional spread of SHG movement in Andhra Pradesh
Cumulative No. of Cumulative
SHGs credit linked Bank loan upto
Total No. of No. of upto march 2009 march 2009 (Rs
S.No Region SHG's members (Rs crores) crores)
1 Coastal Andhra 3, 70,104 42, 73,707 11, 63,320 9664.25
% OF TOTAL 43 43 46 50
2 Rayalaseema 1, 59,153 19, 34,640 4, 15,911 3708.88
% OF TOTAL 19 19 17 19
3 Telangana 3, 21,414 39, 73,834 9,36,273 6097.77
% OF TOTAL 38 39 37 31
TOTAL 8, 50,671 1,01,82,181 25,14,504 19470.9
SOURCE: NABARD

Profile of Self Help Groups in Guntur district:

There are 7, 49,233 rural white ration card households existing in Guntur district. As on 31
March 2011, 55,879 groups have been promoted by DRDA, with a SHG membership of 6,
14,669 spreading over all the mandals in the district. Presuming that there is at least one women
member in each of the families having a white ration card, considerable scope exists for
formation of new groups. Few NGO’s i.e. ASSIST (Chilakaluripet), SASSS (Chowdavaram),
Grama siri (Bapatla), Spandana and CARDS (Guntur) have also implemented the SHG-Bank
Linkage Programme. Few more NGO’s have shown interest in taking up micro financing of
SHG’s in the district. These NGO’s do not have exclusive groups and majority are also members
of SHG’s promoted by DRDA/Indira Kranthi Patham (IKP).

The present position in regards to SHG’s in the district is as under:

24
Table 2.5: SHPI wise number of groups formed:

S.No SHPI No. of SHG’s No. of households

promoted covered

1 Indira Kranthi Pathakam 55,879 6,14,669

Project

2 NGO’s Nil Nil

3 Banks Nil Nil

4 Others NA NA

Source: NABARD – PLP Guntur

Table 2.6: Socio economic profile of SHG’s of DRDA

Total number of SHG’s in the district 55,879

Total members covered under SHG’s 6,14,669

Average number of members per SHG’s 11

Percentage of SC members 30.12%

Percentage of ST members 6.36%

Percentage of BC members 26.47%

Table 2.7: Resources of SHG’s:

Particulars Number

Total savings of the SHG’s Rs.276.68 crores

Average savings per SHG Rs.49,514/-

Total corpus of the SHG Rs.386.44 crores

Average amount of corpus per SHG Rs.69,157/-

25
Present status:

 DRDA has a district level training center at kotappakonda and 30 mandal level training
centers are also set up in project mandals for capacity building of SHG’s and VO’s.
Andhra Bank Institute for Rural Development (ABIRD) and few NGO’s are conducting
MEDP courses on activities such as Tailoring, Embroidery, Fashion designing,
Beautician course, Saree painting to SHG’s members. Most of the courses run by ABIRD
for SHG members are funded by NABARD.

 The rating exercise done by the DRDA indicates that 55% of the groups are rated as ‘A’,
30% are rated ‘B’, 10% are rated as ‘C’, and 5% are rated as ‘D’, Critical Rating Index
(CRI) should be made compulsory for credit linking of SHG’s by DRDA before bank
linkage.

 The state government is also supporting the SHG’s by way of providing housing under
‘Indiramma Housing Scheme’. During the year 2009-10, 6,507 SHG members are
assisted under the scheme with a bank loan of Rs. 1212.68 lakhs.

 The state government is also subsidizing the interest on bank loan under Pavala Vaddi
Scheme by reimbursing the SHGs the difference between the bank interest rate and 3%
p.a., if the repayments are regular in SHG members.

 A novel scheme ‘Debt Swapping Scheme’ for SHGs was implemented during the year
2009-10 under which the high cost debt of 1415 SHGs was swapped by grant of bank
loan of Rs. 5426.45 lakh to SHG members.

 In Guntur district IKP-Urban is also being implemented for the benefit of women in
urban areas. During the year 2009-10, under MEPMA (IKP urban), the achievement was
Rs.11097.02 lakh. The target for the year 2010-11 is Rs.12500 lakh.

Federation of SHG’s:

The DRDA has so far promoted 1766 village organizations (VOs) of the
above 1349 VOs have been registered and 417 are yet to be registered under the APMACS act as
on 31 March 2010. These VOs are again federated at the mandal level and at present 64 Mandal

26
Mahila Samakhyas (MMS) are constituted, including specialized MMS for coastal Fisherman,
Chenchus and Handicapped people. These MMS are again federated at district level to form Zilla
Mahila Samakhya. So far, only one VO was financed by the banks for on lending to SHGs.

Source: NABARD – PLP Guntur

With this background, the study was conducted to find out the scope of activities
which are feasible for SHGs to take up a microenterprise, the reasons why matured SHGs are not
graduating to micro enterprises and what kind of support is required for the SHGs in the process of
graduating into microenterprise in selected villages of Guntur district.

Specific Objectives of the study were

 To find the scope of activities which are feasible for SHG’s to graduate into
microenterprises.
 To know what kind of support is required for SHG to form an enterprise.
 To study the problems faced by SHG’s to graduate into microenterprises.
 To know the impact of MEDP programs on SHG’s.

The study provides useful finding in identifying major bottlenecks responsible for matured SHGs’
not graduating into micro enterprises in selected villages of Guntur districts of Andhra Pradesh.
The findings of the study are expected to long way in development of microenterprises in Andhra
Pradesh will give insight to policy makers to take appropriate policy decisions and also raise
relevant issues for further studies.

27
 CHAPTER - 3

RESEARCH METHODOLOGY
A brief description about the selection of topic, sources and method of data collection and
analytical techniques used during the study are given below:

Selection of Study Area and Sample Units:

The Guntur district of Andhra Pradesh state (India) was randomly selected for the study and
there are total 55,879 SHG’s are functioning in the district which would help and relate to the
objectives of the study. Selection of villages formed the next stage of sampling. The villages
were selected in a pre planned way such that the villages listed for the survey should be covering
all the three revenue divisions (Guntur rural, Narasaraopet and Tenali) of the Guntur district. The
total villages covered for the study counts to 14 villages coming under 11 mandals and they are
Lemalle, Pedakakani, Gollapodi, Jonnalgadda, Venkatreddy palem, Kaza, Mamallapalli, Pitala
vari palem, Gokaraju nalliboena palem, Nizampatnam, Pedaravuru, Komaripudi, Pratipadu and
Yellamanda.

One hundred and seventy five SHG members from 38 different SHGs were interviewed in their
respective villages. SHGs were randomly selected from among all SHGs located in different
mandals of Guntur district. Which were promoted by the DRDA and their group age at the time
of the study, ranges from 3 years to 15 years. The survey was conducted in the month of May
2011, using a random sampling methodology.

These villages have both APL and BPL SHGs and all the SHG’s are having members ranging
from 10 to 15 members. With the help of stratified sampling the SHG’s selected for the study
are mature SHG’s which means the group should avail loan for more than two linkages from the
bank. In this way total of 38 groups were taken in for the sample study.

Selection of respondents formed the next stage of sampling. At this stage, the respondents
includes the first leader, second leader and 3 to 4 other members in the group are selected for the
interview with the help of stratified random sampling.

28
 Table 3.1: Sampling frame of the study:

Sampling frame of the study

Village SHG's SHG Village SHG's SHG
members members
Pedakakani 3 15 Pitala vari palem 2 12
Gollapudi 2 9 Gokaraju 1 5
nanaboeni vari
palem
Jonnalagadda 6 26 Nizampatnam 2 8
Lemalle 5 19 Pedaravuru 1 4
Venkatreddy palem 1 7 Komaripudi 1 5
Khaza 2 9 Pratipadu 3 14
Mamallapalli 5 24 Yellamanda 4 18
TOTAL SHG’s: 38 groups, TOTAL Members: 175 members, TOTAL villages covered: 14

Sources of Data:
The data were collected from the primary as well as secondary sources. The members served as
the primary source of data, whereas the secondary data was collected from different proceedings
of DRDA offices, NABARD website, different books, newspapers, articles, journals, magazines
and web sites were also referred for the purpose.
Tools and Techniques Used for Data Collection:
A well-structured, specifically designed interview questionnaire was used to collect the data. In
order to get reliable information, questions covering different aspects of study were framed. The
interview schedule was constructed carefully after having discussion with the guide and thorough
consultation of available relevant literature so as to fulfill the objectives of the study.
Pre - testing of questionnaire:
The questionnaire was pre - tested in the field with two to three groups to check whether the
information included in the questionnaire would be sufficient to achieve the objectives of the
study or not. After the pre - testing, modification were incorporated in it for the purpose of final
data collection.

29
Data Collection and Analysis:

In order to collect and gather primary data, field observation and structured questionnaire survey

methods were employed. In addition, information was also collected through discussions and

interviews with local NGOs, Banks, DRDA department officials and also interacted with grass

roots level workers like community coordinator (CC), Animator, Village book keeper etc.

Secondary data was gathered from the records of SHGs, DRDA offices were supplemented by

the primary data collected from the group and NABARD website. A wide range of information

such as Basic information of the group formation, their age, educational status, caste, savings

mobilised, loan disbursed, interest rates, recovery procedures, activities taken up by the group,

etc. were ascertained from the SHGs and their members. Besides, different books, newspapers,

articles, journals, magazines and web sites were also referred for the purpose. The data collected

from each village regarding the structure and profile of SHG members, savings and loans of

SHGs, economic and social benefits derived by SHG members etc. has been processed

separately and averages of each village are being taken. The analyses obtained from different

village are compiled and compared to draw the inferences about the performance of the SHGs in

the study area.

30
 Chapter - 4

District profile – Guntur

Guntur District is situated on the coastline of A.P.State. River Krishna bound it

on the North. On the South by Prakasham, Mahaboobnagar and Kurnool Districts and on the
East Bay of Bengal. River Krishna traverses about 250 KMs from North to South-East. The total
geographical area of the district is 11.391 Sq.Kms. (4.14% of the State) comprising 3 Revenue
divisions, 57 Revenue Mandals and 713 Revenue villages of which 706 are inhabited.

As per the 2001 census, the population of the district is 41, 06,999 of which males are 50.75%
females are 49.25% Urban populations is 28.89% and Rural population is 71.11% of the total
population, SCs constitute 13.96% and STs 4.42%. The literacy rate of the district is 44.09% and
density of population is 361 per Sq.km.

The District enjoys the benefit of both South-West Monsoon (63%) and North East Monsoons
(28%). Total normal rainfall of the district in all seasons is 724.94 mm.

The total geographical area of the district is 11, 17,066. Hectors, of which 1, 54,288 Ha.
(12.86%) is under forests. The barren and uncultivated waste is 40,005.6 Ha. Land put to non-
agricultural use is 1, 51,993.6 Ha. And the net area sown is 6, 13,312.8 Ha.

31
The major source of irrigation in the district is the canal system of Nagarjuna Sagar and Krishna
Western Delta Projects. In addition, the district has got good ground water potential and lift
irrigation schemes.

The major crops grown in the district are Paddy, Blackgram, Chillis, Cotton and Tobacco. The
area under food crops is 7, 51,997 Ac., under pulses 5, 50,078 Ac. and under Non-food crops it is
7, 48,242 Ac.

There is good livestock population in the district and dairy resources are being suitably exploited
by Sangam Dairy and many other private dairy units. Besides other minerals available in the
district, lime stone is being utilised by the cement factories at Macherla, Tadepalli and
Piduguralla.

The public in the district are politically highly conscious and take active interest in political
matters. In the delta area social tensions are generally observed between Daliths and Non-daliths.
In the town areas particularly in Guntur Town, Piduguralla, Dachepalli, activities of rowdies are

32
fairly common. In the upland areas of Narasaraopet, Sattenapalli and Gurazala Sub-divisions, the
incidents of bodily offences is high and use of explosives is a common phenomenon in a number
of villages in Macherla, Gurazala, Narasaraopet Rural, Piduguralla and Sattenapalli Police
circles. At present faction in Palnadu belt is remarkably come down. Extremist activities are
existing in the limits of Gurazala Sub-division, Piduguralla Circle, part of Sattenapalli Circle of
Sattenapalli Sub-division, Narasaraopet Rural Circle and Vinukonda Circles of Narasaraopet
Sub-division.

STATISTICS PERTAINING TO GUNTUR DISTRICT

Area 11391 Sq. KM.
Boarder districts Prakasam, Nalgonda, Mahaboob
Nagar & Krishna
Population 43 Lakh
No. of Assembly Constituencies 19
No. of Parliament Constituencies 4
No. of Mandals 57
No. of Revenue Villages 729
No. of Panchayaths 1051
No. of Municipal Towns 10 (Including Guntur Municipal
Corporation)
No. of Bank Branches 235
No. of Industries 20 Large & Medium Industries
No. of Small Scale Industries 3000
Principal Crops Paddy, Cotton, Chitties,
Turmeric, Groundnut, Black-
gram, Tobacco, Ted Gram,
Vegetables.

33
 CHAPTER - 5
DATA INTERPRETATION AND ANALYSIS
The field study has been conducted in Guntur district of Andhra
Pradesh in the month of May, covering 11 mandals and 14 villages of Guntur district. The
interaction with 38 sampled groups which are termed as mature self help groups i.e. who have
availed loan for more than twice and total of 175 members have been interviewed with a
structured questionnaire. Thus, the basic data related to self help groups have been presented
below:

Field Level Survey:

Group Characteristics:

Number of SHGs Studied 38

Range of Age of the SHGs Studied 3 years to 15 years
Size of SHG members 10 to 15
Average group size 10.36
Range of Savings by SHGs Rs.50 to Rs.100
Average savings by the Groups Rs.36, 350
Average funds with a SHGs (loans plus) Rs.4, 99,300
Average loan size (cumulative) of SHGs Rs.3, 63,300
SHGs received training 81.5% (orientation), 18.5% (IGAs)

Member characteristics

No. of SHG Members Interviewed 175

Range of repayment from group per month 10000 - 15000
Average corpus fund with the groups 1, 35,950
Average first loan taken by the groups from the banks 26,500
Average Last loan taken by the groups from the banks 3, 63,300
Average outstanding amount of the groups to the banks 1, 93,840
34
  PROFILE OF THE SELF HELP GROUPS (SHG’s):
The basic data of the beneficiaries have been collected from the respondents which accounts to
an average of 10 members per group and their basic profile which includes AGE, EDUCATION
AND CASTE of the sampled beneficiaries are collected and presented below.

Age profile of the SHG’s:

The age profiles of the total 394 SHG members are been given below:

Table 4.1: showing the Age profile of the SHG

AGE MEMBERS PERCENTAGE

18-30 64 16.24
30-40 232 58.88
40-50 64 16.24
50 & ABOVE 34 8.63
TOTAL 394 100

It is observed from the above table that 58.88% beneficiaries are in age group of 30-40 years and
16.24% beneficiaries are in age group of 18-30 years from this it is evident that 75.12% of the
beneficiaries are in the age group of 18-40 years which belonged to working population.

Amongst the total sampled beneficiaries of 394 members, 16.24% people belongs to 40-50 age
group, where as only 8.63% of beneficiaries are more than 50 years old and are availing the
ABHAYA HASTHAM scheme introduced by government of Andhra Pradesh. This may be
concluded that most of the sampled beneficiaries i.e. 75% are in the working age group reflecting
huge demographic advantages in the Guntur district.

35
Education status of the beneficiaries:

Table 4.2: Showing the educational status of the beneficiaries

MEMBERS PERCENTAGE
ILLITERATE 175 44.42
PRIMARY 152 38.58
HIGH SCHOOL 66 16.75
GRADUATION 1 0.25

TOTAL 394 100

Pie chart 4.1: showing the distribution of the educational status

It is observed that 44.42% of the beneficiaries are illiterate, while 38.58% beneficiaries are
educated up to primary level. Educated beneficiaries like high school and graduates were only
17% of the total beneficiaries. Thus from the above it is clear that 44.42% beneficiaries are
illiterates who are dependent on either first leader of the group or animator, thus these people
need to be educated with basic knowledge and awareness so as to make them self dependent.17%
of educated beneficiaries includes, 16.75% of high school and 0.25% of graduates .

36
Distribution of sample beneficiaries according to social group:

Table 4.3: showing the social group of the beneficiaries.

Caste MEMBERS PERCENTAGE

SC 44 11.17
ST 0 0.00
OBC 160 40.61
MINORITY 20 5.08
GENERAL 170 43.15
TOTAL 394 100

Column chart 4.2: showing the distribution of social group of the beneficiaries

It is interesting to note that 11.17% of the total beneficiaries were Schedule Castes (SC) and
40.61% of the beneficiaries were from Other Backward caste (OBC) and 5.08% were from
minority community. 43.15% of the total beneficiaries belonged to general category that is upper
caste. This may be concluded that majority of the beneficiaries were from downtrodden section
of society consisting of SC, ST, OBC and Minority.

37
  Problems faced by Self Help Group (SHG) to graduate into
microenterprises
In order to get the views from the matured self help groups, the question has been
raised as what is hindering them to form as a unit and start a microenterprise. Thus the following
parameters have been kept and responses are been collected, which is presented in the table
below:

Table 4.4: showing the problems faced by SHG to graduate into microenterprise
Parameter RESPONSES PERCENTAGE
Lack of 19 11.9
entrepreneurship
Skill and knowledge 7 4.4
Marketing 20 12.5
Value chain 13 8.1
Technology 17 10.6
Lack of group 25 15.6
cohesiveness
Finance 6 3.8
Awareness 13 8.1
Risk 18 11.3
Dual responsibility 22 13.8
Total Responses 160 100.0

From the total 175 sampled beneficiaries, only 143 members are involved in Income Generating
Activity and questions were asked regarding the problems they face to graduate into
microenterprise. There were 160 responses from the 143 members that means a single responder
has different problems faced with the following parameters listed in the above table.

Lack of entrepreneurship is one of the major problem with the SHG to graduate into
microenterprises as shown in the above table and for the study, lack of entrepreneurship would
mean the SHG are lacking in initiativeness to take up any activity.

Duel responsibility means the women SHG members besides doing their household activity
shouldering family responsibility, doing their IGA activity were able to provide additional

38
income to their family; thereby it is one of the obstacles for the beneficiaries to spare time for the
IGA activity as well as family responsibility.

16% of the sampled groups are facing the problem of group cohesiveness, when interacted with
the groups the response would be their inferiority complex, mindset and feel like they might
arose clashes as soon as they start the unit, absence of group management etc.

Pie chart 4.3: showing the problems faced by the SHG to graduate into microenterprises

The sample research revealed that 16% of self help group are not receiving benefits because of lack of
group cohesiveness, while about 14% of SHG’s are encountering the problem of deul responsibility .

In respect of marketing skills 12% of SHG’s are lacking in it, while about 12% of SHG’s lack in
entrepreneurship skills.

39
  Kind of Support to be provided to the SHGs to graduate into Microenterprise:

104 out of 160 responses are facing problems to graduate into

microenterprise which are majorly like Lack of group cohesiveness, deual responsibility,
marketing, lack of entrepreneurship, risk taking ability etc.

 support need to be provided in the field of marketing to link their products to the local
markets, mandal mela’s, exhibitions in the towns and cities and establishing a stall to
market their product.
 From the study 11% of SHG women are avoiding risk, which is hampering their
development. Thus, DRDA,NABARD and NGO’s should play a active role in educating
them the positive effects of risk and how it helps them to run their business successfully.
 Entrepreneur must pocess the qualities of risk taking ability but the quantum of risk they
take differce from one person to the other but basic qualities and skills should be imbibed
in them such that they can initiate their microenterprise.
 16% of the SHG in the study are facing the problems of group cohesiveness which is the
major hurdle for them to graduate in to microenterprise, SHG members should be thought
about different ways by which they can be in group and give few successful examples of
the their fellow groups, motivate them better to from in a group and start up the
enetrprise.

There is lot more to be needed as a support to the SHG’s in terms of the financial assistance,
technology upgradation, value chain management etc. which NABARD, DRDA, BANKS,
NGO’s should consider in order to elevate them from the present situation, to grew them as an
initiator or entrepreneur and start microenterprise activity.

40
Case Study 1 : Success story of “Madhurima Mahila Podupu Sangam” , Pitla Vari Palem Village

Madhurima mahila group has started in the year 2000 and

consisting of 10 members. The group leader Rama Devi has initiated to do the business of Pickle
making units in the year 2004. At present the groups is able to produce a turnover of 15,00,000 , the
quantum of pickle’s of about 10 tons and are able to generate a profit of 25% on the turnover.

Homemade pickles of 14 varieties, other cooking powders are produced with good quality are able to
get demand in the market. DRDA department have linked them to market their products and opened a
stall in the exhibition in Hyderabad, Pragathi maydhan- new delhi, other exhibitions in gurgoan,
dehradum etc and also doing direct marketing in the local madals.

The interesting fact about the group is that only three members are actively participating in the
business and the other members are acting as sleeping partners and helping financial assistance to the
active members. Thus, this could be one of the best examples to the other groups for forming as a unit
and take up the enterprise.

41
Case Study 2 : “Guntur Food Co-op”, Pitla Vari Palem Village

Asian Heritage Foundation with the help of an NGO- JIYO

foundation has found a cluster of SHG women who are engaged in common activity i.e. pickle making
in P.V.Palem. Total 43 groups have been found of which 3 to 4 members from each group were
selected to form a new group i.e. Guntur Food Co-op.

World bank has granted a loan of rupees 13,43,000 through AHF and this organization is aiming to
have capital investment of rupees 5,00,000 which they are planning to avail as a loan from the bank
and working capital will be adjusted through the monthly savings of the group members.

Every three months work shop is provided for members at new Delhi on different activities like
bookkeeping, computer training, hygiene class, catering classes and also aiming for herbal activities
also. Arbindo ashramam provides them with food, lodging and incentives.

All kinds of pickles both vegetarian and non vegetarian, sprinkles, all types of spices, sweets, snaks,
papads, cattering services etc are the present varieties of products which are presently accepted for
orders.

Marketing is done through the links provided by the AHF and at present the is been linked with all the
retail outlets like Reliance, Subhiksha, More, Spensors, other exhibition in Hyderabad. In Delhi links
with Navadhanya, Taj group of companies etc were been provided but the group is waiting for the
registration to be done as a cooperative society and licences from FPO.

Orders on hand from Tenali, Chennai, Vijyawada and also monthly orders from Taj group of
companies. They are also planning to get licence to export their products to China and Nepal.AHF has
four clusters of this kind in different places of Andhra pradesh like Srikalahasti, Gatuppal, Vekatagiri
and P.V.Palem.

42
  Details of the activities taken up by the SHG members:
The details of the sample beneficiaries who have utilized the financial support (loan) availed
from the financial institution and taken up activities like Agricultural, Animal husbandry,
Handicraft & handlooms, services, small business and personal purposes, the details of which are
shown in the table below.

Table 4.5: showing the details of the activities taken up by the SHG members through loan

SHG members availed loan for the activity

Activity Members PERCENTAGE
Agriculture based 44 25.1
Animal husbandry/Dairy 38 21.7
Handicraft & Handlooms 19 10.9
Services 19 10.9
Small business 23 13.1
Personal 32 18.3
Total 175 100
NOTE: Activities taken up by the SHG members are clubbed and shown in the above table; details of the
activities clubbed under different heads are shown in the table below:

Agriculture Animal Handicraft & Services Small business Personal

based husbandry/Dairy Handlooms

Crop Milch cattle Paper plates Tailoring Sweet House

Production Sheep rearing Plastic mats Hotel Pickle building
Poultry Pit looms Cycle shop Kirana shop Marriage
Fishery Mineral water Stamps Education
plant Vegetable Investing in
Chairs shop spouse
Fruit shop business
Mango Self needs

43
Bar chart 4.4: showing the details of the activities taken up by the SHG members through
loan

About 25% of the SHG members are using financial assistance for agriculture purpose, where as
22% of SHG members are connected with Animal husbandry/dairy and about 11% accumulate to
handicrafts & handlooms but it is also note that 18% of SHG members are using the financial
assistance for personal purposes.

It is observed that in Guntur district most of the activities are farm based as we have seen above,
58% of the activities taken up by the sampled beneficiaries include agricultural crop production,
milch animal and handlooms & handicrafts. It is interesting to note that these activities are
traditionally imbibed by the beneficiaries from their ancestors.

Even in respect of personal purpose nearly 25% of SHG members are using money for the
purpose of constructing their own house, children’s education and also investment in spouse
business, details of which are presented in the table below

44
 Table 4.6: showing the details of the SHG members who have availed loan for personal
purpose

Personal Purpose
Item Members Percentage
House building 8 25
Marriage 4 12.5
Education 8 25
Investing in spouse 8 25
business
Self needs 4 12.5
Total 32 100
NOTE: In the above table self needs purpose includes food, cloth and health

Pie chart 4.5: showing the details of the SHG members who have availed loan for personal
purpose

Income of the SHG members availing from their respective enterprise:

The sampled beneficiaries have been asked about their monthly gross income, which they realize
from their respective enterprises. The table gives the picture of the different activities which the

45
SHG members run as an enterprise and the amount of gross income which they avail from it are
shown below:

Table 4.7: showing the Gross income details of SHG members based on their activities

ACTIVITY Below 5000 5000- 7000-10000 above 10000 TOTAL

7000
Agriculture based
Crop Production 4 21 11 8 44
Animal husbandry/dairy
Milch cattle 5 16 7 2 30
Sheep rearing 1 1
Poultry 1 1
Fishery 4 2 6
Handy craft & handlooms
Paper plates 3 3
Plastic mats 4 4
Pit looms 3 8 1 12
Services
Tailoring 4 4 2 10
Hotel 3 1 4
Cycle shop 1 1
Mineral water plant 1 1 2
Chairs 2 2
Small business
Sweet 3 2 5
Pickle 5 1 1 7
Kirana shop 3 3
Stamps 1 1
Vegetable shop 1 1
Fruit shop 1 1
Mango 5 5
TOTAL 28 75 23 17 143

From the field study it was found that, the SHG members who are generating income from the
Agricultural based activity are 44 members, of whom 27 members are able to generate income in
the range between 5,000 to 7,000 rupees per month and 11 members are in the range between
7,000 to 10,000 rupees. Generally the crops produced by the members in Guntur district are
chillies, cotton, vegitables etc and the members who have their own land will invest for one time
and able to fetch considerable profits and the others who take land on lease will earn less.

46
The other major activity taken up by the SHG members in Guntur district is Animal husbandry
/dairy where in the group member’s purchase the milch animal from the loan they have availed
and use it for the business of milk, there are other activities like poultry, sheep rearing, fishery
etc. Thus, from the above more members are able to generate income in the range between 5,000
to 7,000 rupees. Sheep rearing is a onetime investment and the members will fetch income after
the sale and able to generate in the range between 7,000 to 10,000 rupees.

In other activities like plastic mats making, paper plates, pit looms, Tailoring, Hotel, Grocery
store, pickle making etc the income most of the members are able to fetch is in between 5,000 to
7, 000 rupees.

Overall if we look at the income point of view 75 members out of the 143 members who are
involved in Income Generating Activity falls in the range 5,000 to 7, 000 rupees. Thus, it shows
that there is need of support to be required for the members so that they can be able to increases
their income levels.

Details of maintenance of books in SHG’s:

Table 4.8: showing book maintenance of SHG’s

Books Maintenance of SHG's

Linkage External Internal
3rd 5 3
4th 11 3
5th 5 6
6th 3 2
Total 24 14
NOTE: in the table external means –books are maintained by the external person who is not a
member of the SHG; whereas internal means – books are maintained by a member of the SHG.

It is interesting to note that, the books maintained by external sources are 24 groups; whereas
books maintained by the internal sources within the group members are 14 groups. Thus, it
clearly depicts that these SHGs have not been able to understand properly during orientation
programmes.

47
Regularity in books maintenance:

All 38 sampled groups conduct the meeting within first week of every month and as soon as the
meeting is over SHGs note the entries in the books relating to loan payment, savings, to whom
loan is to be given within the group etc the types of books maintained are Minutes book, ledger,
savings & interest book, cash book, society register etc.

Details of the training attended by the SHG’s:

Table4.9: giving the details of training on Orientation to SHGs

Training attended by the SHG members ON

Orientation
Groups 31

Out of the total 38 sampled beneficiaries, 31 groups are trained in orientation programmes which
are mostly given by the banks and out of the total 175 members, only 49 members have attended
the Income Generating Activity, respective group details are given below:

Table 4.10: showing the group members who have attended training on IGA’s

S.No Group Name Village No. of On activity Given by

members which
attended organisation
the
training

1 SRI LAKSHMI LEMALLE 4 Tailoring DRDA

MAHILA GROUP

2 PRASANNA LEMALLE 3 Tailoring DRDA

LAKSHMI
MAHILA GROUP

3 MADHURIMA P.V.PALEM 2 Pickle DRAD

MAHILA

48
 PODUPU
SANGAM

4 SADA SEVA KOMARIPUDI 10 Soft toy, fabric ABIRD

MAHILA GROUP painting, bouque,
pottery

5 LASHMI PRATIPADU 10 Soft toy, fabric ABIRD

NARASIMHA painting, bouque,
MAHILA GROUP
pottery

6 MANIKANTA PRATIPADU 10 Soft toy, fabric ABIRD

MAHILA GROUP painting, bouque,
pottery

7 DAVI MAHILA PRATIPADU 10 Soft toy, fabric ABIRD

GROUP painting, bouque,
pottery

Out of total 175 sampled beneficiaries, 49 members have attended training in various activities
like tailoring, pickle making, soft toy making, fabric painting, bouquet making, pottery designing
etc which have been provided by DRDA and ABIRD which is again refinanced by NABARD.
28% of the total sampled beneficiaries have attended the training on Income Generating
Activities

In Guntur district, income generating programmes are given by Andhra Bank Institute of Rural
Development (ABIRD),which at the time of the study is providing training to the women SHGs
in pratipadu and komaripudi villages, also other NGO’s like SERVICE, EFFORT, NILGIRI
foundation etc on both Farm and Non- farm activities.

49
  Impact of MEDP or other training programmes on SHGs :

Table showing the impact of training programmes on the SHGs

Members trained in any of Members Members started Reasons for not taking up
the IGA programmes competed the Income the IGA activities after
the training Generating
training
Activities after
training

49 members 26 members 6 members No orders for the product

Training for IGA has been given in Guntur district on different activities like Tailoring, soft toy
making, fabric painting etc out of the total 175 members only 49 members are in some or the
other IGA training programme, but only 6 members were able capitalize the training given on the
activity like tailoring, members are able to do the business of tailoring in the village and able to
fetch the customers from the local areas.

But the remaining 20 members who have completed the trining in soft toy making and fabric
painting are ready with the skills and able to do produce the products but the order deficit is the
problem. These members are facing a problem of marketing their product into the market this
may be due to proper standardization of the product is absent or they don’t have a proper
channels to market their products.

50
  Linkage wise details loan availed, repayment status and their
internal accruals of the sampled beneficiaries:

All 38 SHG’s are having linkage with the banks, but the study is related to mature
SHG’s, only those groups which have linkage more than twice from the banks i.e. fund rotation
of more than twice from the FI’s are termed as Mature SHG’s for the ease of the study .Thus, for
clear understanding of the study SHG’s are differentiated based on their linkages with the banks
as third, fourth, fifth and sixth linkage.

Third linkage groups details:

Table 4.11 showing the details of Groups who availed loan for third time:

Group Name First loan Last loan amount Repayment per Internal
amount availed month accrual

MAHILA ABHIVRUDHI SANGAM 50000 300000 10000 50000

SAMA VEDA MAHILA GROUP 50000 200000 10000 75000
DAYALAKSHMI MAHILA GROUP 50000 150000 10000 25000
SRI TIRUMALA RAYUDU 8000 300000 10000 110000
MAHILA GROUP

TULASI MAHILA GROUP 20000 500000 10000 75000

SRI LAKSHMI SAI MAHILA 50000 250000 10000 70000
GROUP

MANIKANTA MAHILA GROUP 30000 300000 10000 82000

DAVI MAHILA GROUP 50000 200000 15000 53000

Total: 308000 2200000 85000 540000

Average: 38500 275000 10625 67500

The average first loan amount received by the SHG’s is 38,500, where as the average last loan
amount is 2, 75,000, Further the data reveals that each individual group on an average could able
to maintain internal accruals of 67,500.

51
 If we look at the range of the first loan taken by the SHGs it starts from 8000 which is the lowest
range and 50,000 is the highest range. For the third linkage the highest loan amount bank has
granted to the SHGs is 5, 00,000. That means groups are able to get 5 lakhs within third linkage.

Fourth linkage groups details:

Table 4.12: showing the details of groups who availed loan for fourth time

Group Name First loan Last loan amount Repayment per internal
amount availed month accrual
SRI VIMUKHI MAHILA GROUP 20000 500000 10000 700000
SRI LAKSHMI MAHILA GROUP 30000 300000 10000 43600
SHARADA SAI MAHILA GROUP 50000 300000 10000 23400
RAMADAN MAHILA GROUP 10000 300000 10000 300000
RIYAZ MAHILA GROUP 8000 330000 11000 250000
PRASANNA LAKSHMI MAHILA 8000 500000 10000 147000
GROUP
SRI KOTI MAHILA GROUP 15000 500000 10000 50000
SARASWATI MAHILA GROUP 15000 300000 10000 25000
JHANSI MAHILA GROUP 30000 500000 11000 130000
MADHURIMA MAHILA PODUPU 50000 400000 13000 130000
SANGAM
MAMATA MAHILA GROUP 30000 500000 15000 60000
VIJYA LAKSHMI MAHILA GROUP 16000 150000 5000 42000
GANGA MAHILA GROUP 40000 500000 10000 87000
LASHMI NARASIMHA MAHILA 30000 300000 10000 75000
GROUP

Total 352000 5380000 145000 2063000

Average 25142.9 384285.7 10357.1 147357.1

There are 14 groups out of the total 38 sample who have availed loan for the fourth time and
their average first loan amount received by the SHG’s is 25,100, where as the average last loan
amount is 3, 84,000. If we compare with the fourth linkage groups savings with the third linkage
groups it has increased twice of the third linkage which shows the progress of the groups.Further
the data reveals that each individual group on an average could able to maintain internal accruals
of 1,47,000.

52
 Fifth linkage groups details:

Table 4.13: showing the details of groups who availed loan for Fifth time

Group Name First loan Last loan amount Repayment per Internal
amount availed month saving
SRI SHAKTHI SWAYAM 14000 300000 10000 70000
SAHAYAKA SANGAM
OM SAI SWAYAM SAHAYAKA 20000 500000 11000 200000
SANGAM
KAMAKSHI MADHULA 7000 350000 10000 145000
MAHILA GROUP
SRI LAKSHMI MAHILA GROUP 10000 400000 10000 140000
KALYANI MAHILA GROUP 30000 360000 12000 350000
INDIRA MAHILA GROUP 30000 500000 12000 188000
SWARNABHARATHI MAHILA 30000 500000 10000 177000
GROUP
LASHMI MAHILA PODUPU 36000 500000 11000 190000
GROUP
VAISHNAVI MAHELA GROUP 22000 500000 15000 70000
SADA SEVA MAHILA GROUP 25000 275000 10000 150000
TRIKOTESWARA MAHILA 20000 220000 10000 95000
GROUP

Total 244000 4405000 121000 1775000

Average 22181.8 400454.5 11000.0 161363.6

It is interesting to note that the repayment capacity of the fifth linkage froups has been enhanced
gradually from the third ,fourth to the fifth linkage as the repayment by the groups reached to
15,000 per month and a total average of 11,000.The average first loan amount received by the
SHG’s is 22,100, where as the average last loan amount is 4, 00,000.This suggest that the SHG’s
repaid loan properly enabling the bank to give higher loans subsequently .Further the data
reveals that each individual group on an average could able to maintain internal accruals of
1,61,000.

Depending upon the number of members in the groups, the beneficiaries share equally the
amount to be repaid as a part of repayment of loan and an average of 11,000 per group for a
period of one month and it amounts to 1,100 for an individual if the group’s size is 11.

53
 Sixth linkage groups details:

Table 4.14: showing the details of groups who availed loan for Sixth time

Group Name First loan Last loan amount Repayment per Internal
amount availed month saving
JAI HANUMAN DWCRA 20000 500000 10000 300000
GROUP

ABHUDAYA MAHILA GROUP 20000 500000 10000 150000

SRINIVAS MAHILA GROUP 20000 300000 10000 133000
SRI LASHMI MAHILA GROUP 20000 220000 10000 105000

SAI GANESH MAHILA 20000 300000 10000 100000

GROUP

Total 100000 1820000 50000 788000

Average 20000 364000 10000 157600

There are only five groups of rthe total 38 sampled groups .The average first loan amount
received by the SHG’s is 20,000, where as the average last loan amount is 3, 64,000.This suggest
that the SHG’s repaid loan properly enabling the bank to give higher loans subsequently .Further
the data reveals that each individual group on an average could able to maintain internal accruals
of 1, 57,000.

The range of the first loan amount is same for all the groups and the repayment too. But the
savings of the sixth linkage has been decreased from the previous linkage this may be due to the
excessive usage of the corpus fund of the group for their personal purpose.

54
 Total and Average of all the linkages of SHG’s with the banks:

Table 4.15: showing the details of Groups Loan , repayment and savings

3rd link 4th link 5th link 6th link

Total Average Total Average Total Average Total Average

(For 8 (For 14 (For 11 (For 5
groups) groups) groups) groups)
First loan 308000 38500 352000 25142.9 244000 22181.8 100000 20000
amount
Last loan 2200000 275000 5380000 384285.7 4405000 400454.5 1820000 364000
amount availed
Repayment per 85000 10625 145000 10357.1 121000 11000.0 50000 10000
month
Outstanding 525000 105000 3367000 259000.0 2524000 280444.4 950000 237500

Internal saving 540000 67500 2063000 147357.1 1775000 161363.6 788000 157600

It is observed from the above table that the average internal accruals of different linkages it ie;
from 3rd linkage to the 6th linkage is gradually increasing which indicates that the groups are able
to accumulate saving out of their expenses (thrift) as well as repaying their loan amount
promptly.

linkage 1-2 lakhs 2-3 lakhs 3-4 lakhs 4-5 lakhs

3rd 3 4 0 1
4th 1 5 2 6
5th 0 3 3 5
6th 0 3 0 2

SHG’s receiving financial assistance of 1-2 lakhs are only 4 groups, where as the assistance from
4-5 lakhs are 14 groups .This confirms the fact that as many as 14 groups are receiving higher
financial assistance compared to the other groups and it is also interesting to note that 14 groups
which are having higher assistance are considered to be categorized into Total Financial

55
Inclusion (TFI) limit according to Indira Kranthi Padakam (IKP) scheme introduced by
government of Andhra Pradesh.

Group details:

The sampled beneficiaries accounted for the study is limited to 38 mature groups, whose details
like their total initial loan a availed from the bank, last loan availed, outstanding, their total
corpus fund available with them and the range of repayment from the groups per month .

Table 4.16: showing the details of Groups TOTAL Loan , repayment and savings

PARTICULARS AMOUNT
Range of repayment from the group per month: 10,000-15,000
Total Corpus fund within the groups: 51,66,000
Total initial loan taken by the groups from the banks: 10,04,000
Total last loan taken by the groups from the banks: 1,38,05,000
Total outstanding of the groups to the banks: 73,66,000

In Guntur district the SHG members are taking loan extending to 6 linkages from banks and
enhancing their economic status. The credit and recovery to the bank is upto 90% and in some
mandals extending to 100%.which is maximum in the state and india.

56
  Scope of activities feasible for Self Help Group (SHG)
Activities taken up by the SHG members:

The Table 4.17 presented below includes all the activities presently taken up the SHG members
in the different mandals of the Guntur district where the study has been conducted.

VILLAGE ACTIVITIES

PEDAKAKANI FARM ACTIVITIES: Milch cattle, agriculture, fruits shop.

NON FARM ACTIVITIES: Tailoring, hotel, cycle shop, auto

rickshaw.

GORLAPADU FARM ACTIVITIES: Milch cattle, poultry.

NON FARM ACTIVITIES: Kirana shop.

JONNALAGADDA FARM ACTIVITIES: Milch cattle, agriculture.

NON FARM ACTIVITIES: paper plates, tailoring, hotel, stamps.

LEMALLE FARM ACTIVITIES: Milch cattle, agriculture.

NON FARM ACTIVITIES: Mineral water plant, chairs, tailoring.

VENKATREDDY NON FARM ACTIVITIES: Pit looms, tailoring.

PALEM & KHAZA

MAMALLAPALLI FARM ACTIVITIES: Agriculture, milch cattle.

PITALAVARIPALEM FARM ACTIVITIES: production of mango’s and sale.

& GOKARAJU
NALLIBOENENI NON FARM ACTIVITIES: pickle’s, sweets.
VARI PALEM

NIZAMPATNAM FARM ACTIVITIES: Fishery

PEDARAVURU FARM ACTIVITIES: Agriculture, vegetable production and sale.

NON FARM ACTIVITIES: Pickle

KOMARIPODI FARM ACTIVITIES: Agriculture

57
 NON FARM ACTIVITIES: training is being given on fabric
painting, potery, boque making etc

PRATIPADU FARM ACTIVITIES: Agriculture

NON FARM ACTIVITIES: training is being given on fabric

painting, potery, boque making, soft toy making etc

YELLAMANDA FARM ACTIVITIES: Agriculture, milch cattle, sheep rearing,

NON FARM ACTIVITIES: plastic mats, tailoring, kirana shop,

hotel.

From the above table it is clearly evident that most of the activities taken up by the SHG
members are in the Farm sector compared to non farm sector but in few places like komaripudi
and pratipadu mandals for an example, the training for the non farm sector is being given by
ABIRD and the women SHG are trained in different skills like soft toy making , fabric painting ,
bouque making, pottery works etc. hence there is a lot of scope for the non farm sector in Guntur
district and training with regards to farm sector , few NGO’s like EFFORT, SERVICE are
providing training on dairy activity, milch animals, pesticide procedure for crop production etc.

Scope of activities for the SHG to graduate into microenterprises:

In Guntur district, where agriculture is intensively practisied and major crops like PADDY,
COTTON, CHILLY, PULSES, MAIZE, TURMERIC ETC are produced. The crops are
produced majorly by using pestisides thus government of Andhra Pradesh has been promoting
for non pesticide crop production which would enhance the fertility of the soil as well as quality
output.

Thus the scope for non pesticide activities like vermin composting, bio manure, green manure etc
and training on these activites need to be improvised. The scope for these activities for the SHG
to take up the group activities is affordable.

The table 4.18 presented below briefs the scope of activities that the beneficiaries can take up to
form an enterprise based on the conditions , environment of different villages and mandals of
Guntur district.

58
 Village Scope of activities

FARM ACTIVITIES: Organic Farming, Organic Vegetables, Milch

cattle ( Dairy development), Mushroom Cultivation, Flower
PEDAKAKANI Cultivation (Meri Gold, Bela, Gladulous, Rose), Cultivation of
Medicinal Plant, Crop production of chillies, cotton, turmeric etc.

NON FARM ACTIVITIES: Vermi Composting, Cycle repair and

spare parts unit, Manufacturing of school dress, Hotel, Catering
services for Mid day meal, Diary product like ghee, khowa and paneer,
Fish/Chicken stall, Nursery for fruits and vegetables, Candle making,
Agarbathi making.

FARM ACTIVITIES: Poultry rearing, Milch cattle ( Dairy

development), Organic Farming, Organic Vegetables, Mushroom
GORLAPADU Cultivation, Flower Cultivation (Meri Gold, Bela, Gladulous, Rose),

NON FARM ACTIVITIES: Vermi Composting, Cycle repair and

spare parts unit, Manufacturing of school dress, Grosery shop,
Catering services for Mid day meal, Diary product like ghee, khowa
and paneer, Fish/Chicken stall, Nursery for fruits and vegetables, Coir
rope & mats making.

FARM ACTIVITIES: Crop production of chillies, cotton, turmeric

etc, Milch cattle ( Dairy development), Cultivation of Medicinal Plant,
JONNALAGADDA Organic Farming, Organic Vegetables, Bee Keeping, Mushroom
Cultivation, Flower Cultivation (Meri Gold, Bela, Gladulous, Rose).

NON FARM ACTIVITIES: Leaf plate making, Hotel, Hand

embroidery, Mirror work on women garments, Vermi Composting,
Cycle repair and spare parts unit, Manufacturing of school dress, Diary
product like ghee, khowa and paneer, Fish/Chicken stall, Nursery for
fruits and vegetables, Coir rope and mats making.

59
 FARM ACTIVITIES: Crop production of chillies, cotton, turmeric
etc, Milch cattle ( Dairy development), Cultivation of Medicinal Plant,
LEMALLE Organic Farming, Organic Vegetables, Bee Keeping, Mushroom
Cultivation, Flower Cultivation (Meri Gold, Bela, Gladulous, Rose).

NON FARM ACTIVITIES: Mineral water plant, Chairs for rent,

Vermi Composting, Cycle repair and spare parts unit, Manufacturing
of school dress, Diary product like ghee, khowa and paneer,
Fish/Chicken stall, Nursery for fruits and vegetables, Photo frame
making, Fly ash bricks.

VENKATREDDY FARM ACTIVITIES: Crop production of chillies, cotton, turmeric

PALEM & KHAZA etc, Milch cattle ( Dairy development), organic vegetable cultivation.

NON FARM ACTIVITIES: Pit looms, Muggam and zardosi works,

Jute bag making, Paper bag making, Fabric and glass painting, Vermi
Composting, Cycle repair and spare parts unit, Manufacturing of
school dress, Catering services for Mid day meal, Diary product like
ghee, khowa and paneer, Fish/Chicken stall, Nursery for fruits and
vegetables.

FARM ACTIVITIES: Crop production of chillies, cotton, turmeric

etc, Milch cattle ( Dairy development), Organic Farming, Organic
MAMALLAPALLI Vegetables, Bee Keeping, Mushroom Cultivation, Flower Cultivation
(Meri Gold, Gladulous, Rose).

NON FARM ACTIVITIES: Mulbury cultivation, Cocoon

handicrafts, Chowki silk worm rearing, Vermi Composting, Cycle
repair and spare parts unit, Manufacturing of school dress, Catering
services for Mid day meal, Diary product like ghee, khowa and paneer,
Fish/Chicken stall, Nursery for fruits and vegetables, pickle.

PITALAVARIPALEM FARM ACTIVITIES: Fruit cultivation( like mango’s), Cultivation of

& GOKARAJU Medicinal Plant, Organic Farming, Organic Vegetables, Flower
NALLIBOENENI Cultivation (Meri Gold, Bela, Gladulous, Rose).
VARI PALEM
NON FARM ACTIVITIES: Pickle making, sweet making, Vermi
Composting, Cycle repair and spare parts unit, Umbrella making,
Manufacturing of school dress, Catering services for Mid day meal,
Nursery for fruits and vegetables.

60
 FARM ACTIVITIES: Fish vending, Sprawn cultivation, Fish
breeding, Dry and wet fishes shops.
NIZAMPATNAM
NON FARM ACTIVITIES: Cycle repair and spare parts unit,
Manufacturing of school dress, Catering services for Mid day meal,
Fish/Chicken stall, Fabric painting.

FARM ACTIVITIES: Organic Farming, Organic Vegetables,

Mushroom Cultivation, Flower Cultivation (Meri Gold, Bela,
PEDARAVURU Gladulous, Rose), Milch cattle, Crop production like chillies, cotton,
turmeric etc

NON FARM ACTIVITIES: Pickle making ( both veg and non-veg

pickles), Vermi Composting, Cycle repair and spare parts unit,
Manufacturing of school dress, Diary product like ghee, khowa and
paneer, Fish/Chicken stall, Nursery for fruits and vegetables.

FARM ACTIVITIES: Milch cattle, Crop production, Cultivation of

Medicinal Plant, Organic Farming, Organic Vegetables, Bee Keeping,
Mushroom Cultivation, Flower Cultivation (Meri Gold, Bela,
KOMARIPODI Gladulous, Rose).

NON FARM ACTIVITIES: Vermi Composting, Fabric painting,

Potery work, boque making, Manufacturing of school dress, Diary
product like ghee, khowa and paneer, Nursery for fruits and vegetables.

FARM ACTIVITIES: Milch cattle, crop production,Cultivation of

Medicinal Plant, Organic Farming, Organic Vegetables, Bee Keeping,
PRATIPADU Mushroom Cultivation, Flower Cultivation (Meri Gold, Bela,
Gladulous, Rose).

NON FARM ACTIVITIES: Vermi Composting, Soft toy making,

Fabric painting, Manufacturing of school dress, Catering services for
Mid day meal, Diary product like ghee, khowa and paneer, Nursery for
fruits and vegetables.

61
 FARM ACTIVITIES: Milch cattle, Cultivation of Medicinal Plant,
Organic Farming, Organic Vegetables, Bee Keeping, Mushroom
YELLAMANDA Cultivation, Crop production of chillies, turmeric, cotton etc.

NON FARM ACTIVITIES: Plastic mats making, Paper plates

making,Vermi Composting, Cycle repair and spare parts unit,
Manufacturing of school dress, Catering services for Mid day meal,
Diary product like ghee, khowa and paneer, Fish/Chicken stall,
Nursery for fruits and vegetables.

62
 CHAPTER – 6

MAJOR FINDINGS, RECOMMENDATIONS & SUGGESTIONS

The major findings of the study are:

 75% respondents were in the age group of 18-40 years. 44% beneficiaries were illiterate.
All the beneficiaries were females. 57% beneficiaries were from downtrodden groups
constituting scheduled castes, scheduled tribes, backward castes and minorities.
 Most of the sampled beneficiaries are dependent on external sources to record the books
of accounts i.e. out of total 38 groups, 24 groups (64%) are dependent on external sources
and only 14 groups (36%) are maintaining by their self internal sources within the group.
 The Groups are maintaining books like minutes book ledger, cashbooks, passbooks and
attendance registers. The member’s in-charge of accounts is being given training in
bookkeeping by the community coordinator or village book keeper. And the member who
is in-charge of recording the books will be paid an honorarium by the other group
members.
 So far as the frequency of group meetings are concerned, it is observed that first week of
every month meetings were the most common. In villages like lemalle and Mamallapalli
the group members have kept penalties of Rs 100 for the members who are absent for the
meetings.
 Group age at the time of the study, ranges from 3 years to above 11 years. And there are
about 34 members who are above 50 years of age out of which 22 members (65%) are
able to avail ABHAYA HASTHAM scheme introduced by government of Andhra
Pradesh.
 It is found that the operational efficiency and group dynamics of the SHG is not same in
all villages. This could be attributed to several factors like background of SHG formation,
internal problem, support provided by the promoters, effective leadership, etc.
 The members had joined the group in order to earn more income, promote savings habits
and to develop collective economic and social activities.
 All respondents (100%) were able to save as per rules of their group. And all of them
opined that they are satisfied with the group activities.

63
 From the study, it is found that individual member’s contribution for saving ranges from
Rs. 50 to Rs. 100 per month. Accumulated savings by members to group funds per SHG
were to the tune of Rs. 29, 520, against this loan disbursed amounted to Rs. 10, 500.

 Overall if we look at the income point of view 75 members out of the 143 members who
are involved in Income Generating Activity falls in the range 5,000 to 7, 000 rupees.

 12 SHG’s of the total 38 sampled groups (i.e. 32%) have received a maximum loan
amount of rupees five lakhs.

 In Mamallapalli village most of the SHG’s are doing the activities of dairy and crop
production by taking the land for lease from landlords but due to the impact of inflation
and rise in prices for all the commodities, lease rate were also increased thus making it
difficult for the groups to adjust with the present TFI limit of rupees 5 lakhs.

 30% of the SHG’s i.e. 11 groups out off total 38 sampled groups interviewed during the
study have availed financial assistance from the SHG federation. And all the sampled
groups (100%) are the members of the SHG federation in their respective villages.

 Beneficiaries were facing problems in order to graduate themselves into microenterprise,

majorly due to reasons of Lack of group cohesiveness (15.6%), Dual responsibility
(13.8%), in the field of Marketing (12.5%), Lack of entrepreneurship (12%), Risk
(11.3%), Technology (10.6%), Value chain & Awareness both (8.1%), Skill and
knowledge (4.4%) and Finance (3.8%).
 The activities taken up with the loan by the members are as follows :
a. To meet their self needs
b. Purchase of inputs for agriculture crops
c. Construction of house/Indiramma housing/Individual toilets
d. Purchase of buffalows/miltch animal.
e. Business like grocery shops, cloth shop, auto rickshaw , fruit shop, dairy,
tailoring, pickle making, used plastic bags conversion to cloth for drying
/covering agriculture produce etc.
 Bapatla, Nizampatnam, Repalle the sea coast villages where SHG’s are doing wet and dry
fish procurement and marketing.

64
 Major activities taken up by the Self Help Group members in Guntur district are Major
crop production, Milch animal, pit looms, tailoring, pickle making, small grocery shops,
fruit and vegetables shops etc.
 Most of the activities taken up the SHG’s are those activities which are traditionally
followed from their ancestors.
 At the time of the study, training is been given by ABIRD, on the activities like Fabric
painting, soft toy making, pottery works, bouque making etc in komaripudi and pratipadu
villages of Narasaraopeta division.
 The SHG’s have utilized the bank loans in rotating among the members at 24 % interest
and were able to increase group savings.
 Women empowerment, not only includes the psychological and behavioral changes, but
also the cognitive development like getting new ideas, sharing knowledge and opinion,
transformation of knowledge into responsible roles like leadership etc.. Likewise
economic score, the knowledge score of loan availed found that groups who availed more
linkages with the bank (6th link groups) are high compared to the groups who availed loan
only thrice, as they are more responsible and exposed more to group practices and
procedures of loan availement.
 All the groups interrogated are prompt in repayment of loan without default .This is
evidenced through continuous sanction of loans by bankers and over the years the SHG’s
have advanced from the first spell amount of rupees 20000 to present spell amount
increased to rupees 5 lakhs.
 Out of the total 38 SHG’s interviewed, 31 SHG’s are been trained in orientation
programme given by banks and out of the total 175 members, only 49 members have
attended the Income Generating Activity like soft toy making, fabric painting, pottery
making and bouque making etc in komaripudi and pratipadu villages by ABIRD.

65
 RECOMMENDATIONS & SUGGESTIONS

 Literacy and numeric (recording the data in the books etc) training is needed for the poor women
to benefit from the micro-credit schemes.
 Training in legal literacy, rights and gender awareness are important complements to micro-
credit for the empowerment of women. The members should be given necessary training and
guidance for the successful operation of the group.
 The members of the SHG should be more active, enthusiastic and dynamic to mobilise their
savings by group actions. In this process grass root workers of DRDA department and NGOs
should act as a facilitator and motivator.
 The grass root workers of DRDA who are managing the group should be given nominal financial
benefits, which will enable them to be more involved in the activities of the Group.
 Especially in Guntur district, NGO’s should take more initiatives to train these SHG both in
Farm and Nonfarm activities. Other various training and capacity building programs have to
be conducted on production, packing, marketing, micro credit and utilization of loans etc.,
to women SHGs.
 Micro- entrepreneurs are required to operate at proper economies of scale for sustainable
development and increasing income. Hence they have to increase their volume of business. For
increasing business volume there is an urgent need to increase size of investment and loan
amount. For this purpose, bankers need to be sensitized to change their mindset for
financing to SHGs.
 The SHPIs (Self Help Promoting Institutions) like DRDAs and NGOs have thus a dual role to
play. Not only should they facilitate the availability of credit from the formal sector to the self
help groups, they should also help the self help groups to identify suitable products which they
can manufacture and sell.
 Proper standardization of the products which are produced by the SHGs should be done before it
is kept in the market so as to increase the sale and attract various levels of customers.
 Marketing facilities for the sale of products of SHG should be facilitated by either DRDA or
NGO’s. Periodical exhibitions at village-level may be organized where the products of SHG can
be displayed.

66
 Raw material banks need to be established by federations/SHGs/NGOs/Rural marts at sub -
divisional level to facilitate timely supply of quality raw materials at affordable cost. Help from
Microfinance Innovation Fund with NABARD should be provided for establishing raw
material banks.
 For about 22% of the sampled beneficiaries
are involved in the Animal husbandry
activity in Guntur district and most of them
are engaged in dairy activities, thus scope for
dairy is high and Government, DRDA
officials and NGO’s should facilitate these
SHG to be motivated and support to be given
to them to establish a dairy plants, collection centers and chilling units. Milk units can be
established by solar hybrid milk chiller which enables food suppliers to store and preserve
perishable food items—such as milk, fruits and vegetables—without the need for expensive
diesel-powered generators. Still furthers studies need to be done to know the exact benefits to
the SHG’s.
 SHGs should be organized into federation for collecting the products from beneficiaries and to
tag them to corporate house, wholesaler, retailer, rural Mart etc. Interlinking of Rural Mart
need to be attempted for supply chain management.
 One suggestion for better marketing is to promote the products of one SHG among other SHG
members. Product of one SHG should be distributed to other SHG members through
federation in the beginning, which later can be widened to all SHG members of district/State.
Thus, it should be ensured that the product of SHGs would have wider demand and
marketability
 Capacity building for micro-entrepreneurship development through interaction with successful
entrepreneurs, field visits to the successful units, organizing training on regular interval,
identification of good NGOs for hand holding support, scotting services by NGOs etc, would
help in micro-entrepreneurship development.
 In order to make full use of the microfinance and ensure the success of micro-enterprises, the
project management should understand that all SHG members need not/cannot start a micro-
enterprise at the outset. Some, who are able to take risks, should start first and offer wage

67
 employment to other SHG members. Entrepreneurs need to have some behavioural
competencies like taking initiative, having vision, planning, seizing opportunities, taking
risks, making decisions, solving problems, collecting information, perseverance, time and
quality consciousness, etc. SHG members often shy away at the beginning but are able to
develop these competencies over a period.
 Groups to graduate into microenterprise, members in the group who has the skills of
entrepreneur should take the initiative to take the risks and startup the business and the others as
sleeping partners should provide them with financial assistance to run the business, few other
members can also do the work of marketing their products. Thus, in this way group members
should divide their responsibility in which they are good at.
 Additionally, the SHG members must be given guidance on the opportunities available in their
surroundings. Let us assume that an SHG member shortlists five business opportunities. The
SHG member may thereafter be asked to conduct a market survey, wherein the customers’
needs or expectations and the competitors’ weaknesses are mapped and looked into. This
process helps us to further zero in on the options.
 Active intervention by district administration, professional bodies and voluntary organisations is
precondition for the successful conception of micro enterprises in terms of skill training,
designing products, providing new technology and access to market

68
Limitations of the study:

The present study is a simple attempt to make an understanding of implications and experience
of literature of microfinance on the grounds of reality. Since the study is a part of learning
process, the area covered in the study is very small and based on limited sample size too, which
forms major limitation of the study. Being subjective, to the area and samples drawn for the
study, the study can be treated as simple empirical illustrative attempt in the field of vast and
mounting literature on microfinance. So, further more comprehensive and similar empirical
studies are essential for confirming the results. Present study excluded some important aspects
related to self help groups like group savings and internal lending; as sample consists of
individuals belong to groups with different maturity periods. The study can be extended by
adopting more scientific sampling like stratified sampling and also by including a group of non
Participants of microfinance programs belong to similar socio-economic background will further
help to improve the effectiveness of the study. Best efforts had been made to get the most
realistic picture on the role of microfinance in women empowerment, within the constraints of
time and resource.

69
 References
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The role played by IFAD by Aloysius P. Fernandez, Executive Director, MYRADA.

2. Determinants of Women’s Participation in Self-Help Group (SHG) Led Microfinance

Programme in Tamil Nadu by M. Anjugam1 and C. Ramasamy.

3. Research Paper - Sociology

Impact of Women Empowerment and Role of SHG's in value based Emancipation by
Dr. K. Lalitha and Prof. G. Prasad University College of Arts, Commerce and Law,
Guntur.
4. FINANCIAL SERVICES FOR THE RURAL POOR AND WOMEN IN INDIA:
ACCESS AND SUSTAINABILITY by Vijay Mahajan, BASIX,Bharti Gupta Ramola,
PRICEWATERHOUSE.
5. Microfinance Evaluation Strategies: Notes on Methodology and Findings by Dean Karlan
Yale University, Innovations for Poverty Action, Financial Access Initiative, and the MIT
Jameel Poverty Action Lab Nathanael Goldberg Innovations for Poverty Action.
6. Self-Help Groups: A Keystone of Microfinance in India - Women empowerment & social
security by CS Reddy, APMAS CEO Sandeep Manak, APMAS Intern Mahila
Abhivruddhi Society, Andhra Pradesh (APMAS).
7. Linking Banks and (Financial) Self Help Groups in India -An Assessment by Dr. Erhard.
W. Kropp and Dr. B. S. Suran.
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Ltd in association with APMAS (Andhra Pradesh Mahila Abhivruddhi Society) for CRS,
USAID, CARE, GTZ/NABARD
9. Financial Inclusion and Self Help Groups (An Abstract) by S S Sangwan*
10. GRAMEEN BANK GROUPS AND SELF-HELP GROUPS; WHAT ARE THE
DIFFERENCES? By Malcolm Harper.
11. Commercial Aspects of SHG Banking In India by Dr. Hans Dieter Seibel and
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70
12. Women.s Self-Help Groups in Andhra Pradesh.Participatory Poverty Alleviation in
Action By Dr. Joy Deshmukh-Ranadive,Senior Fellow, Centre for Women.s
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Groups in India by Lucie Gadenne Veena Vasudevan a Working Paper Series in Institute
for Financial Management and Research Centre for Microfinance.
14. Can Self - Help Groups Generate Employment Opportunity for Rural Poor? Microfinance
Newsletter How to Launch Micro-Enterprises AINA Tailoring Centre.
15. The Sustainability of Micro-Enterprises Hand in Hand’s Job Creation Strategy by Centre
for Micro Finance at IFMR Research.
16. Access to Finance in Andhra Pradesh by Doug Johnson and Sushmita Meka
17. From Vicious to Virtuous Circles?: Gender and Micro-Enterprise Development by Linda
Mayoux ,Indian Journal of Commerce & Management Studies ISSN.
18. THE ROLE OF MICROFINANCE IN WOMEN EMPOWERMENT: A STUDY ON
THE SHG BANK LINKAGE PROGRAM IN HYDERABAD (ANDHRA PRADESH)
by Dr.M.Aruna Ms.Rema Jyothirmayi
Lecturer In Economics, Faculty Member in Economics
S.P Jain Degree College Icfai Business School
Banglore, India. IFHE deemed University, Hyderabad.
19. Women and Income Generating Activities: Understanding Motivations by Prioritising
Skill, Knowledge and Capabilities Thanuja Mummidi Impact and Sustainability of SHG
Bank Linkage Programme Submitted to: GT Z-NABARD
20. Promotion of Self Help Groups under the SHG Bank Linkage Programme in India by
Malcolm Harper.
21. Savings and Credit Movement of Andhra Pradesh Lessons for the Rest of India by
Sankar Datta and Vijay Mahajan, Basix.
22. Self Help Group Bank linkage model and financial inclusion in India By Smita
Nirbachita Badajena*1 Prof. Haripriya Gundimeda** .

71
 List of Officials Interacted during the Field study

1. V.M.PARTHASARATHI, Chairman, Chaitanya Godavari Grameena Bank, Guntur

2. VEERA RAGHAVAYA, Asst. Project Director (APD), DRDA, Guntur.

3. P.SIVA KUMAR, Director, Andhra Bank Institute of Rural Development, Guntur

4. M.NAGESWARA RAO, Asst.General Manager (Dist. Development), NABARD.

5. S.M.SULAIMAN BASHA, Asst.Director of Sericulture, District Officer, Guntur.

6. P.AMMAIAH, Manager, Andhra Bank, Gorantla branch, Guntur.

7. S,SIVA RAM KRISHNA, Manager, Uppalpadu branch, SBI,Guntur

8. SATYABHAMA, District Project Manager (DPM), DRDA,Guntur.

72
Annexure

73
QUESTIONNAIRE FOR THE SAMPLED MATURE SELF HELP GROUPS
IN GUNTUR DISTRICT

1. Name of the Self Help Group _______________________________________________________

2. Address _________________________________village__________________________________
3. Date of SHG formation: Date: ___________ month_____________ year____________________
4. Number of members in the group : ___________________________________________________
5. Details of SHG bank : Bank name :________________________ Area______________________

6. Details of the SHG members:

PARTICULARS NUMBERS OF MEMBERS

AGE 18-30 Years

30-40 Years

40-50 Years

Above 50 years

EDUCATION Illiterate

Primary

High school

Graduation

CASTE Scheduled caste ( SC )

Scheduled tribe ( ST )

OBC

Minority

General

MARITAL Married
STATUS
Bachelor

74
7. Details of Group Savings :

i. What is the amount saved __________________________________________________

ii. Weekly/monthly/fortnightly ________________________________________________
iii. What is the interest rate ____________________________________________________
iv. Do members have extra savings _____________________________________________
v. Is there any defaults _______________________________________________________
a) No of members defaulted __________________________________________
b) Period of default _________________________________________________

8. Details of group Meetings:

i. Frequency of the meetings __________________________________________________
ii. What is the regularity of meeting _____________________________________________
iii. Do you take attendance ____________________________________________________
iv. What is the participation of group members in the meeting ________________________
v. Do you have any Agenda’s in the meeting _____________________________________

9. Lending procedure of the group:

i. Amount of loan taken from bank ___________________________________________
ii. Amount from own savings ________________________________________________
iii. Do you lend priority based / earning based lending _____________________________
iv. Interest rate _____________________________________________________________
v. Schedule of loan repayment ________________________________________________

10. Recovery process of the group:

i. How much amount from bank loan has been recovered ___________________________
ii. How much amount from own savings has been recovered _________________________
iii. What is the regularity of recovery ____________________________________________
iv. Penalties collected in case of any default ______________________________________
v. Do you have any special mechanism for default _________________________________
vi. How many members have been defaulted ______________________________________
vii. Any rewards for on time repayment __________________________________________

11. Maintenance of books of the group:

i. Types of books maintained _________________________________________________
ii. Who maintains the books __________________________________________________
iii. Weekly/monthly/fortnightly ________________________________________________
iv. Whether books are updated after every meeting _________________________________
v. Whether peer audit takes place in the group ____________________________________
vi. Quality of books maintained ________________________________________________

75
 12. Loan availed from the banks to the group:

Amount from 1st Amount from 2nd Amount from 3rd

loan loan loan

Date Amount Date Amount Date Amount

(Rs) (Rs) (Rs)

i. Loan availed for which purpose ____________________________________________________

ii. Purpose of the loan availed for :
a) For self needs ________________________________________________________________
b) For income generating activities __________________________________________________
iii. Loan availed by members from the group ____________________________________________

Respondent’s 13..Name the 14.Mention 15.Capital 16.Income 17. How do you 18.What are
micro the date when invested availing from rate your the Reasons
Name enterprise you have the enterprise unit.(good, for
which you have started average, bad) success/failu
started (Gross) re

(19. 1 for demand based activity, 2 for well planned, 3 for timely financial support, 4. Assured raw material, 5 for availability of market, 6 others)

76
Respondent’s 19.Is there any 20. How 21. What 22. Are you planning to shift 23.activities
name value chain for this these value help is to another enterprise taken up by
purpose chain can required fellow SHG’s
be created to create
If yes, If no, the value If yes, To If no, farm Nonfarm
name what type chain why you which reason
the of value wanted activity out
value chain can to- : farm
chain be created /nonfar
m

77
24. What are the problems you are facing in graduating to microenterprises in following area?

Item Problems What solution you offer for the

problem

a) Lack of
entrepreneurship
b) Difficulties in
identification
microenterprise
based on demand
c) Skill and
knowledge
d) Raw material

e) Finance

f) Quality control

g) Brand

h) Pricing

i) Packaging

j) Marketing

k) Value chain

l) Technology

Remarks:

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
________________________________________________

78
Respond in yes or no

particulars Resp:1 Resp:2 Resp:3 Resp:4 Resp5: Resp:6 Resp:7

25. Whether supply of raw

material is assured?

26. Whether you have

arrangements for packaging?

27. Whether you have

arrangements for marketing?

28. Whether clustering of activities

and networking has been done?

29. Whether market tie up has been

done?

If yes please indicate the tie up

30. Whether different types of

markets are attempted by you?

(local haat, weekly haat, mela)

31. Whether the retail market chain

has been created?

32. Whether price of the product is

competitive?

33. What is the arrangement for

collection of the product?

(daily/weekly/fortnightly/monthly)

79
Who collects the product?

34. What is the arrangement for

payments?

(daily/weekly/fortnightly/monthly)

35. Whether technical support

/coordination is being provided?

If yes, by whom:

36. Whether SHG federation has

been formed?

(yes, no, process started)

37. if yes, what type of support

federation is providing?

i) Supply of raw material

ii) Marketing

iii) Facilitating loan

iv) Technology help

v) Any other (please specify)

38. Whether you are getting credit

in time?

39. What problems you are facing

in getting the credit?

a) Whether credit is available?

b) Whether loan amount is

adequate?

c) Whether you are getting credit

in time?

d) security:

(demanding collateral security,

80
 some deposits, not demanding
security)

e)Processing time

(1 month, 2 month, 2-4 months,

above 6 months)

f) Process

( Hassel free loan, lengthy process,

avoidance)

g) Repayment

(regular, irregular)

40. Whether you are adopting the

latest production technology?

MEDP to SHG’s:

Particulars Resp:1 Resp2: Resp3: Resp4 Resp5: Resp Resp7:

: 6:

41. Name the organization

with address, who has given
MEDP training.

42. Date of MEDP training

43. Duration of MEDP

training

44. If not adequate, what

should be the duration?

45. Whether the trainers were

sincere, open and fair to all?

(strongly agree- strongly

disagree)

81
46. Is there any improvement
in your efficiency level in
managing enterprise after
training?

47. Are you now efficient

enough to plan for raw
material, finance and
marketing?

48. Please offer your

suggestion for improvement
of MEDP

i) content

ii) duration

iii) methodology

iv) trainers

v) others

49. Suggestions for promoting microenterprise:

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
________________________________________________

Remarks:

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_________________________________________________

82
S.NO MANDAL TOTAL NUMBER OF SHG's IN THE VILLAGE
MANDAL
1 PEDAKAKANI 1258 PEDAKAKANI
2 PEDAKAKANI
3 PEDAKAKANI
4 GOLLAPUDI
5 GOLLAPUDI
6 GUNTUR RURAL 1564 JONNALAGADDA
7 JONNALAGADDA
8 JONNALAGADDA
9 JONNALAGADDA
10 JONNALAGADDA
11 JONNALAGADDA
12 AMARAVATHI 1146 LEMALLE
13 LEMALLE
14 LEMALLE
15 LEMALLE
16 LEMALLE
17 MANGALAGIRI 1275 VENKATREDDY
PALEM
18 KHAZA
19 KHAZA
20 PONNUR 1229 MAMALLAPALLI
21 MAMALLAPALLI
22 MAMALLAPALLI
23 MAMALLAPALLI
24 MAMALLAPALLI
25 PITALAVARIPALEM 733 P.V.PALEM
26 G.N.PALEM
27 P.V.PALEM
28 NIZAMPATNAM 1257 NIZAMPATNAM
29 NIZAMPATNAM
30 TENALI 1425 PEDARAVURU
31 SATTENAPALLI 1070 KOMARIPUDI
32 PRATIPADU 964 PRATIPADU
33 PRATIPADU
34 PRATIPADU
35 NARASARAOPETA 1267 YELLAMANDA
36 YELLAMANDA
37 YELLAMANDA
38 YELLAMANDA
TOTAL 13188

83
 GROUP NAME MEMBERS INTERACTED WITHIN THE
GROUP
SRI SHAKTHI SWAYAM SAHAYAKA SANGAM 4
SRI VIMUKHI MAHILA GROUP 6
MAHILA ABHIVRUDHI SANGAM 5
OM SAI SWAYAM SAHAYAKA SANGAM 4
JAI HANUMAN DWCRA GROUP 5
ABHUDAYA MAHILA GROUP 5
SRI LAKSHMI MAHILA GROUP 4
SHARADA SAI MAHILA GROUP 5
KAMAKSHI MADHULA MAHILA GROUP 4
SAMA VEDA MAHILA GROUP 4
DAYALAKSHMI MAHILA GROUP 4
RAMADAN MAHILA GROUP 4
RIYAZ MAHILA GROUP 4
SRI LAKSHMI MAHILA GROUP 4
PRASANNA LAKSHMI MAHILA GROUP 4
SRI TIRUMALA RAYUDU MAHILA GROUP 3
SRI KOTI MAHILA GROUP 7
TULASI MAHILA GROUP 4
SARASWATI MAHILA GROUP 5
KALYANI MAHILA GROUP 5
INDIRA MAHILA GROUP 5
SWARNABHARATHI MAHILA GROUP 5
LASHMI MAHILA PODUPU GROUP 4
JHANSI MAHILA GROUP 5
MADHURIMA MAHILA PODUPU SANGAM 6
SRI LAKSHMI SAI MAHILA GROUP 5
MAMATA MAHILA GROUP 6
VIJYA LAKSHMI MAHILA GROUP 4
GANGA MAHILA GROUP 4
VAISHNAVI MAHELA GROUP 4
SADA SEVA MAHILA GROUP 5
LASHMI NARASIMHA MAHILA GROUP 5
MANIKANTA MAHILA GROUP 5
DAVI MAHILA GROUP 4
SRINIVAS MAHILA GROUP 5
SRI LASHMI MAHILA GROUP 4
SAI GANESH MAHILA GROUP 4
TRIKOTESWARA MAHILA GROUP 5
175

84
 LINKED WITH THE BANK AREA OF THE BANK LOCATED
CANARA BANK PEDAKAKANI
CANARA BANK PEDAKAKANI
CANARA BANK PEDAKAKANI
STATE BANK OF INDIA UPPALPADU
STATE BANK OF INDIA UPPALPADU
ANDHRA BANK GORANTLA
ANDHRA BANK GORANTLA
ANDHRA BANK GORANTLA
ANDHRA BANK GORANTLA
ANDHRA BANK GORANTLA
ANDHRA BANK GORANTLA
INDIAN OVERSEAS BANK LEMALLE
INDIAN OVERSEAS BANK LEMALLE
INDIAN OVERSEAS BANK LEMALLE
INDIAN OVERSEAS BANK LEMALLE
INDIAN OVERSEAS BANK LEMALLE
ANDHRA BANK KHAZA
ANDHRA BANK KHAZA
ANDHRA BANK KHAZA
STATE BANK OF INDIA MAMALLAPALLI
STATE BANK OF INDIA MAMALLAPALLI
STATE BANK OF INDIA MAMALLAPALLI
STATE BANK OF INDIA MAMALLAPALLI
STATE BANK OF INDIA MAMALLAPALLI
ANDHRA BANK P.V.PALEM
ANDHRA BANK P.V.PALEM
ANDHRA BANK P.V.PALEM
STATE BANK OF INDIA NIZAMPATNAM
STATE BANK OF INDIA NIZAMPATNAM
ING VYSYA BANK PEDARAVURU
CHAITANYA GODAVARI GRAMEENA BANK KOMARIPUDI
ANDHRA BANK PRATIPADU
ANDHRA BANK PRATIPADU
ANDHRA BANK PRATIPADU
CHAITANYA GODAVARI GRAMEENA BANK YELLAMANDA
CHAITANYA GODAVARI GRAMEENA BANK YELLAMANDA
CHAITANYA GODAVARI GRAMEENA BANK YELLAMANDA
CHAITANYA GODAVARI GRAMEENA BANK YELLAMANDA

85
 AGE EDUCATION
18-30 30-40 40-50 50 & ABOVE ILLITERATE PRIMARY HIGH GRADUATION
SCHOOL
2 4 1 3 6 3 1
4 6 3 2 14 1
3 6 1 8 2
10 1 9 2
1 8 1 9 1
2 1 7 2 6 2
3 6 1 7 3
2 7 1 7 3
7 3 7 3
7 3 9 1
6 4 7 3
4 6 6 4
9 2 7 4
7 3 7 3
8 2 8 2
8 2 10
6 4 5 4 1
10 2 6 2
10 2 8
12 9 3
9 2 9 2
6 4 6 3 1
2 8 1 8 2 1
5 5 1 4 6 1
2 8 8 2
8 2 4 2 4
2 8 7 3
2 6 2 7 3
7 3 7 3
6 2 2 1 9
12 2 8 2
4 6 5 5
10 3 7
10 10
2 7 1 6 2 2
9 1 7 3
8 2 4 3 3
6 2 2 10
64 232 64 34 175 152 66 1

86
 SOCIAL CATEGORY SAVINGS NUMBER OF TIMES LOAN
AVAILED
SC ST OBC MINORITY GENERAL RUPEES
10 50 5
10 5 80 4
2 8 50 3
11 100 5
10 100 6
4 6 50 6
1 9 100 4
10 100 4
8 2 100 5
10 100 3
1 9 100 3
10 100 4
11 100 4
9 1 100 5
10 100 4
10 80 3
10 100 4
10 100 3
10 100 4
12 100 5
11 100 5
10 100 5
11 100 5
11 100 4
10 100 4
10 100 3
2 8 100 4
10 100 4
10 100 5
10 100 5
12 100 5
10 100 4
10 50 3
10 50 3
1 9 100 6
10 100 6
10 100 6
1 9 100 5
44 0 160 20 170 RANGE:50- RANGE: 3- 6
100

87
MEMBERS PER
GROUP
ACTIVITIES TAKEN UP BY SHG MEMBERS
10 Milch cattle, fruit, tailoring, personnel
15 Cycle shop, tailoring, hotel, milch cattle, personnel, agriculture
10 Milch cattle, personnel, Auto
11 Milch cattle, kirana shop, poultry
10 Milch cattle, seasonal
10 Milch cattle, seasonal, Hotel
10 Paper plates, Milch cattle, Tailoring
10 Stamps, agriculture, milch cattle, tailoring
10 Milch cattle
10 Agriculture
10 Agriculture
10 Agriculture, Chairs, mineral water plant, personnel
11 tailoring, chairs, agriculture
10 agriculture, milch cattle, tailoring
10 agriculture, seasonal, milch cattle
10 agriculture
10 pit looms, tailoring
10 pit looms, tailoring
10 pit looms
12 milch cattle, agrculture, seasonal
11 seasonal
10 seasonal
11 agriculture, seasonal
11 agriculture, seasonal
10 pickle
10 sweets
10 mango
10 fishery
10 fishery
10 pickle, vegitables, agriculture
12 seasonal, agriculture
10 agriculture
10 agriculture
10 seasonal
10 Milch cattle, kirana shop, sheep rearing, agriculture
10 plastic mats
10 hotel, milch cattle, tailoring, personnel
10 milch cattle, agriculture, seasonal
394
RANGE:10-15

88
Group group starting issue FIRST LOAN AMOUNT issue
date Date date
1 Dec-00 Jul-01 14000 Jan-11
2 Feb-98 Sep-98 20000 Dec-09
3 Feb-98 Feb-99 50000 Nov-08
4 Nov-00 Apr-01 20000 Dec-10
5 Nov-00 Jun-01 20000 Apr-11
6 Sep-94 Apr-95 20000 Feb-08
7 Jan-06 Jul-06 30000 Dec-10
8 May-07 Nov-07 50000 May-11
9 Jan-06 Jul-06 7000 Sep-10
10 Jan-06 Jul-07 50000 Dec-09
11 Jan-09 Jul-09 50000 May-11
12 Jan-04 Jul-04 10000 Apr-09
13 Jan-04 Jul-04 8000 Jul-09
14 Jan-04 Jul-04 10000 Apr-11
15 Aug-03 Mar-04 8000 Apr-09
16 Aug-03 Mar-04 8000 Jan-09
17 Jul-99 Feb-00 15000 Oct-08
18 May-01 Dec-01 20000 Jun-09
19 Oct-00 May-01 15000 Jul-10
20 Aug-99 Jan-00 30000 Aug-08
21 Apr-97 Nov-97 30000 Sep-07
22 Sep-97 Mar-98 30000 Nov-08
23 Dec-03 Jun-04 36000 Nov-10
24 Jul-04 Jan-05 30000 May-11
25 Jul-00 Jan-01 50000 Apr-11
26 Mar-04 Oct-04 50000 Sep-09
27 Feb-04 Aug-04 30000 Feb-10
28 Jul-98 Feb-99 16000 May-04
29 Sep-02 Mar-03 40000 Jul-10
30 Jan-02 Jul-02 22000 Jan-11
31 Feb-04 Aug-04 25000 Jul-10
32 Jan-04 Jul-04 30000 Jul-10
33 Mar-04 Sep-04 30000 Nov-08
34 Sep-04 Mar-05 50000 Mar-10
35 Jun-98 Dec-98 20000 Jan-10
36 Jan-00 Jul-00 20000 May-09
37 Apr-98 Nov-98 20000 Jul-10
38 Oct-90 May-91 20000 Oct-10
1004000

89
LAST LOAN AMOUNT LINK Repayment per month Outstanding internal
AVAILED saving
300000 5 10000 150000 70000
500000 4 10000 230000 700000
300000 3 10000 nil 50000
500000 5 11000 445000 200000
500000 6 10000 490000 300000
500000 6 10000 110000 150000
300000 4 10000 250000 43600
300000 4 10000 300000 23400
350000 5 10000 270000 145000
200000 3 10000 30000 75000
150000 3 10000 150000 25000
300000 4 10000 50000 300000
330000 4 11000 110000 250000
400000 5 10000 390000 140000
500000 4 10000 250000 147000
300000 3 10000 20000 110000
500000 4 10000 190000 50000
500000 3 10000 275000 75000
300000 4 10000 200000 25000
360000 5 12000 nil 350000
500000 5 12000 nil 188000
500000 5 10000 80000 177000
500000 5 11000 434000 190000
500000 4 11000 500000 130000
400000 4 13000 387000 130000
250000 3 10000 50000 70000
500000 4 15000 300000 60000
150000 4 5000 nil 42000
500000 4 10000 400000 87000
500000 5 15000 440000 70000
275000 5 10000 175000 150000
300000 4 10000 200000 75000
300000 3 10000 nil 82000
200000 3 15000 nil 53000
300000 6 10000 150000 133000
220000 6 10000 nil 105000
300000 6 10000 200000 100000
220000 5 10000 140000 95000
13805000 401000 7366000 5166000

90
Books maintained FIXED DEPOSITS IN BANKS Training
INTERNAL ORIENTATION
INTERNAL 100000 ORIENTATION
INTERNAL ORIENTATION
EXTERNAL 50000 ORIENTATION
EXTERNAL 50000 ORIENTATION
EXTERNAL 50000 ORIENTATION
EXTERNAL ORIENTATION
INTERNAL ORIENTATION
INTERNAL ORIENTATION
INTERNAL ORIENTATION
INTERNAL ORIENTATION
EXTERNAL ORIENTATION
EXTERNAL ORIENTATION
EXTERNAL INCOME GENERATING ACTIVITY
EXTERNAL 50000 INCOME GENERATING ACTIVITY
EXTERNAL ORIENTATION
EXTERNAL 50000 ORIENTATION
EXTERNAL ORIENTATION
EXTERNAL ORIENTATION
INTERNAL ORIENTATION
INTERNAL 50000 ORIENTATION
INTERNAL 50000 ORIENTATION
INTERNAL 50000 ORIENTATION
INTERNAL 50000 ORIENTATION
EXTERNAL INCOME GENERATING ACTIVITY
EXTERNAL ORIENTATION
EXTERNAL 50000 ORIENTATION
EXTERNAL ORIENTATION
EXTERNAL 100000 ORIENTATION
EXTERNAL ORIENTATION
EXTERNAL INCOME GENERATING ACTIVITY
EXTERNAL INCOME GENERATING ACTIVITY
EXTERNAL INCOME GENERATING ACTIVITY
EXTERNAL INCOME GENERATING ACTIVITY
EXTERNAL ORIENTATION
INTERNAL ORIENTATION
INTERNAL ORIENTATION
EXTERNAL ORIENTATION
700000

91
 ACTIVITY Below 5000- 7000- above TOTAL
5000 7000 10000 10000
AGRICULTURE BASED
Crop Production 4 21 11 8 44
ANIMAL HUSBANDRY/DAIRY
Milch cattle 5 16 7 2 30
Sheep rearing 1 1
Poultry 1 1
Fishery 4 2 6
HANDI CRAFT &
HANDLOOMS
Paper plates 3 3
Plastic mats 4 4
Pit looms 3 8 1 12
SERVICES
Tailoring 4 4 2 10
Hotel 3 1 4
Cycle shop 1 1
Mineral water plant 1 1 2
Chairs 2 2
SMALL BUSINESS
Sweet 3 2 5
Pickle 5 1 1 7
Kirana shop 3 3
Stamps 1 1
Vegetable shop 1 1
Fruit shop 1 1
Mango 5 5
TOTAL 28 75 23 17 143

92

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