Volume : 3, Issue : 3, JUL 2019
A STUDY ON THE SOCIO-ECONOMICAL FACTORS OF SHG WITH SPECIAL REFERENCE TO OMACHIKULAM VILLAGE IN MADURAI DISTRICT
Dr. V. Pushpalatha
Self-help group are clusters of individual in villages coming together in performing some business activates at micro level in order to generate income for theft livelihood they function under certain rules and norms towards fulfilling common needs. These groups help mainly in upliftment of country’s economic development. Self help group are also called as mutual or help a mutual aid groups and a compound of peers. Who share a similar mental, emotion or physical problem, these people are banded together to improve their chances for survival by pooling their social and economical resources. They work for same needs and purpose. They have increased in member in our country. It is a financial intermediary committee usually composed on 10-20 local woman or men. The word itself denotes it is mutual help within the group member. In layman’s language it means it is a group of people who might be daily or weekly wage earners, who form a group and from that group one person collect the money and gives the money to the person who is in need Members regularly make small savings contributions over a few months till there is enough money in the group to begin lending.
Professor Mohamad Yusuf was the man behind the Garmeen bank who realized that it was a difficult task for the poor village people to procure loans from banks without collateral securities.
In India, Micro finance through SHG is only a recent phenomenon in micro credit system which has been developed only after the nationalization of commercial banks in 1969. The central government introduced a lot of credit based programmes in linkage with. Integrated Rural Development programme. This was mainly a poverty alleviation programme lunched by government of India in 1999.
The magic of success depends on the good will of the members in borrowing utilization and repayment of funds as it is dealt with joint accountability.