A Study on Trends, Patterns and Growth of SHGs in India

Self Help Group is a unique method to empower poor, especially women Self Help Groups helps their members by providing them financial assistance through bank loans and also refinancing the existing SHGs. Hence SHGs have proved as an effective measure as members of the same community. similar background, with similar problems helps the members to understand each other in a better way and find amicable solutions for their concerns. Micro finance has proved as an effective method in providing financial support to the SHGs. Through Micro finance new SHGs are provided with loans and the existing SHGs get support by refinancing to meet their requirements. In the year 2016-17 18.98 lakh SHGs were provided loans by the banks of which 90.41% were exclusive women SHGs. The loan amount disbursed stood at38781.16 crore in 2016-17 which was 88.39, higher from 2012-13 where exclusive women SHGs shared 93% of the total loan amount. Savings of SHGs with banks in 2016-17 was 16l14.23 crore which was an increase of 96.22% from 2012-13 to 2016-17. The actual growth and the effectiveness of SHGs are only when the members of the group repay back their loans on time and NPA are low. During the last five years the overall NPA's against loans has shown a decrease but agency wise the NPAs has increased. Thus, this requires attention and proper policies to control them so that the initiative of SHG becomes successful