SHG Microfinance Model Case Study

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SHG microfinance model is widely accepted measure to promote development and empowerment of women. Micro financial programmes targeted mainly on women. The traditional philosophical practices confined women as inferior to men. But SHGs intervention is the key which opens the door to practical life. Participation in income generating activities and economic independency should transform marginalized women into mainstream. Women empowerment is much important, the changes in their life enhance the prosperity at household, community and national level. Microfinance programmes have the power to destroy poverty and ever increasing unemployment rate. The problem of poverty, unemployment and inequality are the main barrier to the development…show more content…
• The study result shows that their risk taking ability is increased. Because around 61.67 percent beneficiaries made future programme outlines. • Out of 60 samples around 33 percent have own land • Around 11.67 percent beneficiaries have their own vehicles. • Live stock is an income generating source. Majority i.e, 62 percent have live stock assets. • Savings are crucial because no one can predict their future. Savings can help a person financially secure in some extend. It can compensate financial emergencies. NHGs act as a medium to encourage savings. Beneficiaries were not allowed to withdraw savings during the period. One noticeable factor is that NHGs beneficiaries getting loan twice as compared to their savings. The study result shows that 81.67 percent of respondents have savings ranges between Rs 10000-20000.Around 45 percent respondents have savings in other institutions. • Three fourth of the respondents are completely used credit amount for productive purpose. • All the beneficiaries made regular credit repayment with their own income. • All of them expect more credit from NHGs. Of the total sample 61.67 percent respondents need credit for productive…show more content…
It raises their consumption level and standard of living. They can contribute more on their family expenditure and also held savings with in NHGs and other formal financial institutions. Around 11.67 percent beneficiaries acquire their vehicles they used both NHGs loan and profit from enterprises. Majority of entrepreneurs started their business enterprises with the help of micro credit received from NHGs. The rate of interest for thrift loan is 1 percent but credit received from linkage loan charging higher rate of interest, varies between 8 percent to 12.5 percent. All the beneficiaries opined that they need more credit from NHGs for satisfying different needs. Entrepreneurs are mainly engaged in farm and nonfarm activities. The study result shows that 38 percent of them running animal husbandry units such as dairy farming duck and chicken farming and goat rearing. The remaining 62 percent running nonfarm enterprises such as tailoring unit, food processing unit, tea stall , jewelry making unit and stationary unit. Dairy farming is more profitable as compared to other micro

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