Self Help Groups and Micro Finance- An Empirical Study

Microfinance is only successful model reaching the poor to uplift them by providing easy loan to build their business and other practices of self sufficiency, where regular financial services couldn't reach. The success of SHGs as a development tool depends on the availability of Micro Finance. This study aims at evaluating the empowerment of rural women through SHGs and availing microfinance in two blocks from Tirunelveli District viz, Kalakadu and Valliyur. This study is compiled with the help of the primary data covered only three months period (2010). Totally 216 respondents were selected from 12 SHGs of two blocks by using simple random sampling method. The socio-economic conditions of members have improved since joining the groups. The positive changes have been reported in case of awareness regarding nutrition, health, hygiene, family planning, decision making related to money centered, interaction with outsiders, mobility, educational development, access to health services, family income etc. The result of chi-square analysis (χ2=9.14, P=0.0392), revealed that there is significant relationship between socio-economic status after joining SHGs and SHGs members in two blocks from Tirunelveli District study area. The Self Help Group really helps the women folk to participate in organized activities apart from helping members to mobilize funds. The present study concludes that the respondents are economically and social empowered by becoming members of SHGs in Tirunelveli District