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Micro Finance (Self Help Group)

A Desertion Submitted In Partial Fulfillment of the


For The Award



For The Session 2015-17

Ropar Institute of Management Technology,


Ms. Rupinder Kaur Jyoti Sharma
Roll No-2055

Being a student of Master of Business Administration Course

Research Projects are essential exercise & every student of
professional studies is compulsory to go through these type of
project to find out the exposure of corporate world & its day-to-day
dynamic characteristics. It was privilege for me to undertake my
research project under guidance of Lect. Ms. Rupinder Kaur, of
management department. I would like to express my deep sense of
gratitude to Lect. Ms. Rupinder Kaur for her valuable guidance
inspiration and encouragement. I received from them all research
period and without their contribution the completion of project might
not be possible.

I wish to acknowledge my gratitude to all respondent whose

sincere response helped me to accomplish the project.

I Jyoti Sharma Roll No. 2055 M.B.A. IVth sem. of the Ropar IMT
Shekhupur hereby declare that the Project Report entitled Micro
Finance (Self Help Group) is an original work and the same has
not been submitted to any other Institute for the award of any other
degree. A seminar presentation of the Project Report was made on
Micro Finance (Self Help Group) and the suggestions as
approved by the faculty were duly incorporated.

Jyoti Sharma

There is a mounting hope that microfinance can be large scale

poverty alleviation tool for decades Indias poor have been left
out of the reach of the bank loans. But out of necessity and
enterprise, those locked out of the banking world have found a
way out. It is called microcredit-the extension small loans to
individuals who are too poor to qualify for traditional bank, loans,
as they have no assets to be offered as guarantee. In India,
microcredit has largely worked only through self help groups.
Globally it is slowly proving one of the most effective strategies to
remove poverty. Banks too are shedding their old reluctance to
lend to the poor, and are looking to tap the expertise of
microcredit groups to create new market which has been
emphatically projected on the current study

I have studied 5-6 case studies of Jalgaon janata sahakari bank

which were all about how they helped and financed the poor and
economically backward women in the district of Jalgaon

Self-Help Group or in-short SHG is now a well-known concept. It is

now almost two decade old. It is reported that the SHGs have a
role in hastening countrys economic development. SHGs have
now evolved as a movement. Mainly, members of the SHGs are
women. Consequently, participation of women in the countrys
economic development is increasing. They also play an important
role in elevating the economic status of their families. This has
led boost to the process of womens empowerment.

I undertook this project report mainly for the purpose of

understanding the importance of SHGs in todays banking and
Indian economy.
All in all microfinance is all about how bank and government
institutions help the backward class and encourage their savings,
and provide their banking knowledge

s.No Introduction Page No
Introduction 6-9
Bank profile 10-15

Special features
Branch expansion
highlights and
Literature review 16-29
Self help group (the
heart of
Basic knowledge of
Challenges faced
by woman
Overcoming the
Objectives & Scope of the study 30-31
Research Methodology 32-34
Data analysis 35-51
Case Studies
Findings 52
Conclusion 53
Limitations 54
Suggestions 55
Bibliography 56
Questionnaire 57-60

What is microfinance?

Microfinance is a source of financial services for entrepreneurs

and small businesses lacking access to banking and related

What is microcredit?

A small financial loan made to poverty-stricken individuals

seeking to start their own business. This type of loan typically
does not exceed a couple hundred dollars, so an impoverished
individual can not solely depend on this type of loan to fund their
business. Its also called micro loan.

What is the difference between microfinance and


Although often used interchangeably, microfinance and

microcredit are in fact quite distinct. Microfinance is a much
broader concept than microcredit and refers to loans, savings,
insurance, money transfers, and other financial products targeted
at poor and low-income people. Microcredit refers more
specifically to making small loans available to poor people,
especially those traditionally excluded from financial services,
through programmes designed specifically to meet their
particular needs and circumstances.
What is self help group?

A self-help group (SHG) is a village-based financial intermediary

committee usually composed of 1020 local women or men. A
mixed group is generally not preferred. Most self-help
groups are located in India, though SHGs can also be found in
other countries, especially in South Asia and Southeast Asia.
In India, Self Help Groups or SHGs represent a unique approach to
financial intermediation. The approach combines access to low-
cost financial services with a process of self management and
development for the women who are SHG members
The SHGs signify transforming energy into synergy.
In the Indian economy in general, women comprise a significant
proportion of labor force especially in agriculture and rural sector.
By working in factories, laboratories, agricultural fields,
construction sites, mines and numerous organizations, women
have been contributing a great deal to the economic progress of
the country. Despite this, they continue to be underpaid.
Moreover, their contribution goes unnoticed. Also, women workers
face serious problems and constraints related to work, such as
lack of continuity, insecurity, wage discrimination, unhealthy job
relationship, absence of medical facilities and accident prevention
and post accident care. The below two real cases of Jodhpur
district of Rajasthan bear a testimony to this fact.

What is my project and what I learnt?

Projects can be further defined as temporary rather than

permanent social systems or work systems that are constituted
by teams within or across organizations to accomplish particular
tasks under time constraints. As mentioned above that SHGs are
the financial supporters for rural people specially women, so I
have made an effort by studying how JALGAON JANATA SAHAKARI
BANK has supported such groups. The graphs will draw the
attention towards some statistics which will explain how SHGs
are growing popular in rural and urban cities as well.

What I learnt-

Basics of SHGs and their working mechanism

Different schemes provided by JJSBL
Problems banks face during the financing process
How to setup such groups
Empowerment of women through microfinance
How small business units would lead to our countrys economic


Jalgaon janata sahakari bank limited is a scheduled and

developing bank of Jalgaon having 35 branches in Maharashtra
state each of which providing convenient services to people of all
Balance sheet of the bank as on 31st march 2014 showed a profit
of 6, 76, 09,012 rupees
The bank is making unflinching efforts towards the development
of self help groups in rural areas of Jalgaon. The bank has being
forward in terms of inventing new services of savings since the
last few years.
Talking about the same, JJSBL has also provided loans to farmers
for the purchase of solar-pumps.
For the purpose of empowering the poor the bank has initiated-
Farmer savings account, Joint liability group, and self help
groups which is getting huge response since 2012-13

Self-help groups are started by non-governmental organizations

(NGOs) that generally have broad anti-poverty agendas. Self-help
groups are seen as instruments for goals including empowering
women, developing leadership abilities among poor people,
increasing school enrollments, and improving nutrition and the use
of birth control. Financial intermediation is generally seen more as
an entry point to these other goals, rather than as a primary
objective.[2] This can hinder their development as sources of village
capital, as well as their efforts to aggregate locally controlled pools
of capital through federation, as was historically accomplished
by credit unions.


A SHG may be registered or unregistered. It typically comprises a

group of micro entrepreneurs having homogeneous social and
economic backgrounds, all voluntarily coming together to save
regular small sums of money, mutually agreeing to contribute to a
common fund and to meet their emergency needs on the basis of
mutual help. They pool their resources to become financially stable,
taking loans from the money collected by that group and by making
everybody in that group self-employed. The group members use
collective wisdom and peer pressure to ensure proper end-use of
credit and timely repayment. This system eliminates the need
for collateral and is closely related to that of solidarity lending,
widely used by micro finance institutions.[1] To make the
bookkeeping simple, flat interest rates are used for most loan


Type Public limited company

Industry Banking
Founded on 20th January 1979
Head office Seva, 117/119, navi peth, Jalgaon-
Key people 1. Shri.Sanjay.Champalal.Birla-
2. Shri.Vidyadhar.Bhalchandra.Dan
dawate-managing director
Total staff 367
Products 1.deposit accounts
3.banking and utility services
Revenue Rs. 63903012.60
Total assets Rs. 550815021.42
Telephone 0257-2223699

Jalgaon janata sahakari bank which is a renowned and legendary

bank of North Maharashtra was established on 20th January

With its constant efforts in the banking field and mounting public
participation it opened its first branch in 1983 which is popularly
known as market yard branch
The bank automated its operations for the first time ever in 1991
by installing computerized software in its Dana bazaar

After effectively scattering and dispersion of its operations in

Jalgaon, the bank started its area of operations in Dhule and
expanded itself

Dhule peoples co-operative bank is successfully merged into

JJSBL in the same year i.e. 1993

Jalgaon Janata InfoTech Pvt. Ltd. was established in February,

1997. Today it is one of the leading Banking Software Company in
the state of Maharashtra. The Company has its SHRIBHUSHAN
Online Banking Software with more than Seven Hundred and Fifty
The Company is promoted by directors who have rich experience
in the field of Co-Op. Banking, Software Development, System
Integration and Networking.

In the initial years of 20th century the banks business was routed
through robust and core banking solutions and got all its branches
fully computerized

In 2003-2004 the bank completed its silver jubilee. It was in the

later months of 2004 when JJSBL laid its special focus on forming
and financing women and poor people from rural and urban
With more than 11640000 shareholders, the bank has an
investment of more than 2470196000 rupees in government and
semi government institutions and holds share in banks like-JDCC,
Special features of Jalgaon Janata Sahakari Bank Ltd-

Variety of accounts designed to meet all your needs

Insurance and mutual fund distributors
SMS banking
Special kind of loans suiting the needs of each class of society
Depositary services
Empowerment of backward classes
Active participation in social causes
Arrange fun-fairs, in which their SHGs participate and earn

Financial inclusion program

A special focus is being laid on Financial Inclusion by ways of
Forming new Self Help Groups(SHGs)
Joint Liability Groups(JLGs)
Farmers club, etc
Each of the above service accounts offered by the bank is simply
for the empowerment of the poor and backward classes people.
As regards of the last 4 years, JJSBL has always being there for
the ladies who wanted to come together and form financial
As per the articles in local newspapers, the bank has constantly
being active in taking seminars, arranging workshops for
motivating the women
Branch expansion

JJSBL has a network of branches and 1 extension counter spread

all over in the parts of north Maharashtra, Mumbai, Pune,
Marathwada & Vidarbha regions of Maharashtra state

Reserve bank of India has granted permission to your bank for

opening branches at Shirpur and PCMC both these ranches will
commence its operations shortly.

Side by side with spreading out in unchartered territories, theyre

investing significant resources to improve their branch ambience
and facilities for customer comfort and convenience


Particulars 2012-13 2013-14 Change

1 Own funds 98.11 108.05 10.11%
Paid-up capital 25.12 29.10 15.84%
Reserves 73.01 78.95 8.14%
2 Aggregate deposits 884.31 973.71 10.11%
3 Aggregate 565.74 625.45 10.55%
4 Investment 321.56 363.58 13.02%
5 Net profit 7.06 6.39 -9.49%
6 CRAR 11.53% 11.91% 3.30%
7 Working capital 1002.43 1085.52 8.29%
The Total Business Mix of JJSBL stood at Rs.1599.16 Cr as on
March 31, 2014 as against Rs.1450.04 Cr in the previous year
reflecting an increase of Rs.149.11 Cr
As at end-March 2014, Deposits and Gross Advances stood at
Rs.973.71 Cr and Rs.625.45 Cr, thereby registering a growth of
10.11% and 10.55%, respectively.
The CD ratio stood at 64.23% as on March 2014 as against
63.98% as of March 2013.
The Advances portfolio of the Bank is well diversified, balanced
and the credit needs of productive sectors of the economy have
been met.
The Priority Sector (PS) Advances constituted 49.11% of Adjusted
Net Bank Credit (ANBC) as against the requirement of 40% as on
March 2014.
The Bank has registered the Net Profit of Rs. 6.39 Cr as at the end
of March 2014.
The Net worth of the Bank increased to Rs.57.03 Cr from Rs.
51.07 Cr compared with last year.

Despite this challenging environment, Bank has been able to

perform well, registering an all round growth in various
parameters. Total Income increased from Rs. 106.08 Cr to Rs.
120.39 Cr in the reporting year recording growth of 13.49%.
Interest Income showed a growth of 9.01%. The total expenditure
(excluding provisions and contingencies also increased to Rs.
113.99 Cr showing growth of 13.14%. As stated earlier despite
challenging economic environment your Bank posted a Net Profit
of Rs. 6.39 Cr after making the provisions and contingencies.
Bank's policy of declaring dividend is to reward the shareholders
as well as to plough back sufficient profits for maintaining a
healthy capital adequacy ratio and supporting future growth.
Accordingly, your Board of Directors is happy to propose a
dividend @ 10.00% on Pro-rata Basis.

(The heart of microfinance)

Muhammad Yunus, a Nobel Prize winner, introduced the

concept of Microfinance in Bangladesh in the form of the
"Grameen Bank". The National Bank for Agriculture and Rural
Development (NABARD) took this idea and started the concept of
microfinance in India. Under this mechanism, there exists a link
between SHGs (Self-help groups), NGOs and banks. SHGs are
formed and nurtured by NGOs and only after accomplishing a
certain level of maturity in terms of their internal thrift and credit
operations are they entitled to seek credit from the banks. There
is an involvement from the concerned NGO before and even after
the SHG-Bank linkage. The SHG-Bank linkage programme, which
has been in place since 1992 in India, has provided about 22.4
lakh for SHG finance by 2006. It involves commercial banks,
regional rural banks (RRBs) and cooperative banks in its

Society is Focusing on: Development of Self Help Group

for Women-

In India, Self Help Groups or SHGs represent a unique approach to

financial intermediation. The approach combines access to low-
cost financial services with a process of self management and
development for the women who are SHG members. SHGs are
formed and supported usually by NGOs or (increasingly) by
Government agencies. Linked not only to banks but also to wider
development programmes, SHGs are seen to confer many
benefits, both economic and social. SHGs enable women to grow
their savings and to access the credit which banks are
increasingly willing to lend. SHGs can also be community
platforms from which women become active in village affairs,
stand for local election or take action to address social or
community issues (the abuse of women, alcohol, the dowry
system, schools, and water supply).


Self-help groups are started by non-governmental organizations

(NGOs) that generally have broad anti-poverty agendas. Self-help
groups are seen as instruments for a variety of goals including
empowering women, developing leadership abilities among poor
people, increasing school enrollments, and improving nutrition
and the use of birth control. Financial intermediation is generally
seen more as an entry point to these other goals, rather than as a
primary objective. This can hinder their development as sources
of village capital, as well as their efforts to aggregate locally
controlled pools of capital through federation, as was historically
accomplished by credit unions.

NABARD's 'SHG Bank Linkage' program-

Many self-help groups, especially in India, under NABARDS SHG

Bank Linkage program, borrow from banks once they have
accumulated a base of their own capital and have established a
track record of regular repayments.

This model has attracted attention as a possible way of delivering

micro-finance services to poor populations that have been
difficult to reach directly through banks or other institutions. "By
aggregating their individual savings into a single deposit, self-help
groups minimize the bank's transaction costs and generate an
attractive volume of deposits. Through self-help groups the bank
can serve small rural depositors while paying them a market rate
of interest."
Advantages of financing through SHGs

An economically poor individual gains strength as part of a group.

Besides, financing through SHGs reduces transaction costs for
both lenders and borrowers.
While lenders have to handle only a single SHG account instead
of a large number of small-sized individual accounts, borrowers as
part of an SHG cut down expenses on travel (to & from the branch
and other places) for completing paper work and on the loss of
workdays in canvassing for loans.

Evolution of Self Help Groups in India

In India, soon after independence, there has been an aggressive

effort on the part of the government, which was concerned with
improving the access of the rural poor to formal credit system.
Some of these measures have been institutional, while some
others were through implementation of focused programmes for
removal of rural poverty. Reaching out of the far-flung rural areas
to provide credit and other banking services to the hitherto
neglected sections of the society is an unparallel achievement of
the Indian banking system. The main emphasis is the spread of
the banking network and introductions of new instruments and
credit packages and programmes were to make the financial
system responsive to the credit the weaker sections in the society
comprising small and marginal farmers, rural artisans, landless
agricultural and non-agricultural laborers and other small
borrowers falling below poverty line.
Consequently, by the implementation of several poverty
alleviation programmes, the number of people below the poverty
line has declined from 272.7 million in 1984-85 to 210.8 million in
1989-90, in 1991-2000, which constitutes over 21 percent of the
The institutional credit system needs to meet the challenges of
delivering credit to an ever-increasing number of rural people who
need greater access to formal credit. It may have to reinforce its
own structure at the grass root level and also have to devise new
ways of reaching out of the rural poor.
As a result, the experience of implementation of the above
discussed poverty alleviation programmes lead to the
introduction of the Integrated Rural Development Programme
(IRDP) on 2nd October, 1980 with the specific objective of raising
the poor rural families above the poverty line. Such families
considered credit support from banks as an important input in
taking up economic and gainful activities.
In spite of these impressive achievements in the expansion of the
credit delivery system and special programmes, nearly half the
indebted rural households are still outside the ambit of the
institutional system. They approach the moneylenders for
meeting their consumption and production in the absence of
institutional support. Some of the poor who have not been
reached even by the vast network of the institutional credit

delivery system, have organized themselves into self help groups

(SHGs) and many such groups have come into existence either
spontaneously or with the active involvement of the voluntary
agencies which motivated the rural poor to pool their meager
financial resources for meeting their small and frequent
consumption and production credit needs.

I. What are SHGs?

Self help Group (SHGs) are small group of poor people. The
members of an SHG face similar problems. They help each other,
to solve their problems. SHGs promote small saving among their
members. The savings are kept with the bank. This is common
fund in the name of the SHG. The SHG gives small loans to its
members in the name of common fund.

I. Size of the SHG

The ideal size of an SHG is 10 to 20 members.

II. Is it officially recognized to the bank with informal


Yes, RBI and NABARD have approved banking with SHGs. RBI has
classified loans to SHGs as priority sector lending.

II. Who help to form SHGs?

A reasonably educated and helpful local person has to initially

help the poor people to form groups. He or She tells them about
the benefits of thrift and advantages of forming groups. This
person is called as animator or facilitator.

I. Any of the following persons can be a successful

Retired school teacher or a retired government servant, who is
well known locally.
A health worker/ a field officer/ staff of a development agency
or department of the State Government.
YOU yourself! (The field officer or a staff member of a
commercial bank/ regional rural bank or a field staff from the
local co-operative bank or society can also help the poor in
forming groups.)
A field level functionary of an NGO.
An unemployed educated local person, having an inclination to
help others.
A member/participant in the Vikas Volunteer Vahini (VVV)
Programme of NABARD.
Woman animators can play more effective role in organizing
women SHGs.

The animator cannot organize the groups all alone. He or she will
need guidance, training, reading material, etc.

II. Usually, one of the following agencies help:

A voluntary agency or Non Government Organization (NGO).

The development department of the State Government.

The local branch of a bank.

III. What does the animator do?

The animator talks to people in the village or at their homes.

He or she explains the benefits of thrift and group formation.
No promise of bank loan is given to anyone.
He or she helps the group members to hold one or two initial
The group finds a group leader, for holding meetings, keeping
books, etc.
The animator guides and encourages the leader and the group

III. Size of the SHG

The ideal size of an SHG is 10 to 20 members.

(Advantage: In a bigger group, members cannot actively

participate. Also, legally it is required that an informal group
should not be of more than 20 people.)

The group need not be registered.

IV. Membership

i. From one family, only one person can become a member of an

SHG.(More families can join SHGs this way.)
ii. The group normally consists of either only men or of only
women. Mixed groups are generally not preferred.
iii. Womens groups are generally found to perform better. (They
are better in savings and they usually ensure proper use of
iv. Members should have the same social and financial
background.(Advantage: This makes it easier for the members to
interact freely with each other. If members are both from rich as
well as poor class, the poor may hardly get an opportunity to
express them.)

I. Some Common Factors for Membership in an SHG

Women/men from very poor households.

Those who depend on money lenders even for daily
Those with a per capita income not exceeding Rs. 250 per
Those having dry land holding not exceeding 2.5 acres.

II. Common living conditions for the Group Members

Living in kutcha houses.

Having no access to safe drinking water.

Having no sanitary latrine.

Those that have only one or no one employed in the family.

Presence of illiterate adults in the family.

Presence of an alcoholic or drug addict in the family or a member

suffering permanently from prolonged illness.

Presence of children below five years in the family.

Family eating two meals or less a day.

Scheduled Caster or Scheduled Tribe families.

If a family has at least four of the above 9 common living

conditions, it can be considered poor, and one member of that
family can be encouraged to become a member of an SHG.

(These are only examples. You can also use locally important
conditions to decide whether a family is poor.)

V. Meetings

The group should meet regularly. Ideally, the meetings should

be weekly or at least monthly. (Advantage: They become closer, if
they meet regularly. This helps them to understand each others
difficulties better.)
Compulsory attendance: Full attendance in all the group
meetings will make it easy for the SHG to stabilize and start
working to the satisfaction of all.
Membership register, minutes register etc., are to be kept up
to date by the group by making the entries regularly.(Advantage:
This helps you to know about the SHG easily. It also helps to build
trust among the SHG members.)

VI. Keeping of Accounts by the SHG:

Simple and clear books for all transactions to be maintained.

If no member is able to maintain the books, the SHG may take
outside help. (It has been seen that a boy or girl from the village
with some educational qualification does this job enthusiastically.
After some months, the group can even consider giving him or
her a small reward for this job.)
Animator can also help.
All registers and account books should be written during the
course of the meeting. (Advantage: This creates confidence in the
minds of members who are unable to read and write.)
What are the books kept by an SHG?

I. Minutes Book:

The proceedings of meetings, the rules of the group, names of the

members etc. are recorded in this book.

II. Savings and Loan Register:

Show the saving of member separately and of the group as a


Details of individual loans, repayments, interest collected,

balance, etc. are entered here.

III. Weekly/ fortnightly/ Monthly Register:

Summary of Receipts and payments.

Updated in every meeting.

IV. Members passbooks:

Individual members pass books in which individuals savings and

loan balance outstanding is regularly entered.

VII. Major Functions of an SHG

a. Savings and Thrift:

All SHG members regularly save a small amount. The amount
may be small, but savings have to be a regular and continuous
habit with all the members.

Savings first-Credit later should be the motto of every SHG


SHG members take a step towards self-dependence when they

start small savings. They learn financial discipline through savings
and internal lending.

b. Internal lending:

The SHG should use the savings amount for giving loans to

The purpose, amount, rate of interest, schedule of repayment

etc., are to be decided by the group itself.

Proper accounts to be kept by the SHG.

c. Discussing problems:

In every meeting, the SHG should be encouraged to discuss and

try to find solutions to the problems faced by the members of the
group. Individually, the poor people are weak and lack resources
to solve their problems. When the group tries to help its
members, it becomes easier for them to face the difficulties and
come up with solutions.
d. Taking bank loan:

The SHG takes loan from the bank gives it as loan to its members.
(Details may be seen in the next chapter.)

Soon after an SHG is formed and one or two meetings held where
the savings are collected, a savings bank account can be opened
in the name of the SHG.
Challenges are faced by the women entrepreneurs due to many
reasons. Some of the challenges faced by the women
entrepreneurs include-

Intense competition from similar products, limited knowledge,

production and quality standards as well as low confidence and
Many women started their own business due to the adverse
circumstances, such as loss of spouses, divorce or financial
Lack of follow up and holding support (i.e. Capital, market
linkages, technical information and marketing techniques) after
receiving Entrepreneurship development training.
A risk adverse mindset.
Inadequate capital.
Networking problem (i.e. with raw supplier to buyer of products)
Low level of motivation and courage.
Lack of support from male members (of the families) as well as
Large magnitude of the target group of poor people.
Attitudinal rigidities.
Difficulty in creating awareness among people.
Limited resources with the NGOs.
Large requirements of training and sensitization of issues.
Limited number of experienced intervention agencies.
Diversities of situations due to wide coverage.
The challenges faced by the women entrepreneurs can be
overcome with the help of the following measures-

Creating the Importance of Entrepreneurship program and skills

training, and MF and support under single roof.
Training programme operating in several states helped NGOS-
MFIs provide their microfinance clients different set of skills for
successfully running enterprises.
Provide micro credit for livelihood support and to micro
enterprises development.
Encouraging women entrepreneur to utilize the loans for
productive purposes and have the potential to become
Establishing a network of SHG to serve as a self-help
community for micro enterprises development activities.
Social recognition of women leading an enterprise.
Developing female mentors, trainers and advisors.
Establishing sources of credit.


To study the socio-economic background of respondents.
To examine the Pre-SHG and Post-SHG status of SHG members.
To study the impact of SHGs on the respondents.
To study the benefits received by the respondents through various
income generating activities.
To study the various problems faced by the SHG members in the
study area.

This piece of work will draw our attention towards the condition of
women in todays society and the potential they possess to
achieve wonders
Itll help to conclude how JJSBL is serving society through
empowerment of weaker sections
Can be used in the SWOT analysis of micro-financing
structure of JJSBL


This chapter focuses on the methodology & the techniques used

for the collection, classification & tabulation of data. It light on the
research problem, the objective of study & its limitations.


Research methodology is a way to systematically solve the

problem. It is a game plan for conducting research. In this we
describe various steps that are taken by the researcher.

All progress is born of inquiry. Doubt is often better than

overconfidence, for it leads to inquiry and inquiry leads to

Research in a common parlance is a search for knowledge.

Research is an art of scientific and systematic investigation. Thus
research comprises defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organizing and
evaluating data, making deductions and reaching conclusions.
Research methodology is the arrangement of condition for
collection and analysis of data in a manner that aims to combine
relevance to the research purpose with economy in procedure.
Research Methodology is the conceptual structure within which
research is conducted. It constitutes the blueprint for the
collection measurement and analysis of the data.
Research methodology is a framework for the study and is used
as a guide in collecting and analyzing the data. It is a strategy
specifying which approach will be used for gathering and
analyzing the data. it also includes time and cost budget since
most studies are done under these two constraints. The research
methodology includes overall research design, the sampling
procedure, the data collection method and analysis procedure.


Descriptive Research

In the study descriptive research design has been used. As

descriptive research design is the description of state of affairs,
as it exists at present. In this type of research the researcher has
no control over the variables; he can only report what has
happened or what is happening

Descriptive research designs are those design which are

concerned with describing the characteristics of particular
individual or of the group. In descriptive and diagnostic study the
researcher must be able to define clearly what he wants to
measure and must find adequate method for measuring it.


After the research problem has been identified and selected the
next step is to gather the requisite data. While deciding about the
method of data collection to be used for the researcher should
keep in mind two types of data i.e. primary and secondary.
Primary Data

The primary data are those, which are collected afresh and for the
first time, and thus happened to be original in character. We can
obtain primary data either through observation or through direct
communication with respondent in one form or another or
through personal interview.

Methods used in primary data collection-

Observation method
Interview method
Questionnaire method

Secondary Data

The secondary data on the other hand, are those which have
already been collected by someone else and which have already
been passed through the statistical processes. When the
researcher utilizes secondary data then he has to look into
various sources from where he can obtain them. For e.g. books,
magazine, newspaper, internet, publications and reports.

In this study data have been taken from various secondary

sources like:


Analysis1- SHG statistics

Total number of SHGs of JJSBL- 3800

Women members in those SHGs- 60000

Savings of these women till date- 80000000


Loan disbursement till date- 250000000



According to the statistics of JJSBL, they have a total of 3800

SHGs all over the states. 60% of these SHGs are solely combined
of women. Savings done by these women since 2002 till present
year comes up to Rs. 80000000. And on the other hand Jalgaon
janata has lent up to Rs.250000000 of loan to these women

In the financial year, the bank has successfully arranged

approximately 110 training sessions and women empowerment
Analysis 2 - loan distribution

Sr. no Taluka name No. of Loan

groups disburseme
nt amount
1 Nandurbar 1 30000.00
2 Sawda 1 76000.00
3 Yawal 14 443500.00
4 Bodwad 22 906000.00
5 Chalisgaon 19 1278000.00
6 Jamner 11 1384000.00
7 Amalner 80 671500.00
8 Bhusawal 179 11056000.00
9 Jalgaon 250 181156300.0
T 577 34001300.00

loan disbursement

1-nandurbar 1-s awda 14-yawal 22-bodwad 19-chalis gaon 11-jamner 80-amalner

179-bhus awal 250-jalgaon

The above pie-chart depicts that out of the 3800 SHGs of JJSBL all
over Maharashtra, Jalgaon alone consists 250 SHGs followed by
bhusawal, which has 179 SHGs.
The other Talukas doesnt have any impressive number of SHG
compared to these cities. This is mainly because of the rural
background of these cities
One of the most obvious reasons of such fluctuations is that
JJSBLs head office is situated in Jalgaon
Apart from Jalgaon and bhusawal, amalner also have 80 SHGs.

Analysis 3- Activities carried out by Jalgaon SHGs

Name of the activities percentage of the groups

Papad-making 40%

Sewing 30%

Farming 20%

Bag-making 10%

common activities by groups

papad making


On the basis of the data from 5-6 most popular SHG samples, it was
found that the most common activity in which almost 40% of the groups
engage themselves in, is papad making.

30% of the women groups prefer sewing activities. And the rest of the
percentage is occupied by groups who are engaged in farming and bag

Apart from these many other SHGs are also focusing on marketing their
home-made products in local hostels, hotels and schools.

Sr. no. Factors to be Very good Good Unsatisfactor

checked y
1 Group size 15-20 10-15 Less than 10
2 Type of Only very 2 or 3 not Many not
members poor very poor very poor
member members member
3 Number of 4 times in a 2 times in a Less than 2
member month month times in a
4 Attendance More than 70 to 90% Less than
of members 90% 70%
5 Participation On a Very Medium level Low level
of members high level
6 Savings 4 times 3 times Less than 3
collection times
within the
7 Amount to Fixed amount Varying
be saved` amount
8 interest on Depending 24 to 36% More than
internal loan upon the 36%
9 Utilization of Fully used for Partly used Poor
savings by loaning the for loaning utilization
SHGs members
10 Loan More than 70% to 90% Less than
recoveries 90% 70%
11 Maintenance All books are Most Irregular in
of books regularly important maintaining
maintained registers are books
12 Accumulated More than Rs.3000- Less than
savings 5000/- 5000/- 3000/-
13 Knowledge of Known to all Known to not known to
the rule of some anyone
Analysis 4- Case studies

Name- Sharda Mahila Bachatgat

Area of operations- Rameshwar colony, eknath nagar, Jalgaon

Contact number- 8237509835

Established on- 26th July 2012

Account number- 11214, market yard branch

Number of members- 20

Savings- 200Rs per member

Monthly savings- 4000Rs/-

Age- 30 months

Total savings- 120000/-

Business engaged in- sewing

Bank loan- i. 100000Rs/-

ii. 200000Rs/-

No. of Installments- 980

Interest rate- 14% per annum

24 months pay back agreement

Maintenance of books- simple journals maintained

The members of this group who are all specifically women, are found to be
regular in their operations and pay their monthly installments promptly

They also conduct their meetings on a timely basis. They have also
borrowed loans twice in the last 30 months which was professionally
utilized for the purpose of-

1. Purchase of Sewing machine

2. Sewing Business expansion by purchasing more material and place
to conduct stitching classes

After the sewing machine was purchased 15 out of 20 women in the group
grabbed the opportunity by getting connected with local dealer and hiring
him as their distributor.


Consists 20 members depicts impressive signs. Speaking about the

financial background of the member, 7 of them have a poor financial
history. Loan is fully utilized for the purchase of sewing machine. Each
member saves up to 200 rupees pm gives a picture of punctuality.

Till date the accumulated savings are 120000Rs, apart from this the group
has borrowed loan twice in their time span. The interest charged by the
bank is fixed at 14% pa.

Name- sant muktai womens group

Area of operations- mehrun, Jalgaon

Founded on-21st September 2007

Savings- 200 Rs per member

Monthly savings- 2000 Rs

Age- 88 months

No. of members- 20

Total savings- 140000/-

Account number- 8368

Contact number- 842109495

Business engaged in- i. Agriculture

ii. Sewing

Bank loan- 140000/-

Interest rate- 14% per annum

Loan utilization- purchase of farming equipments

Maintenance of books- NIL


As it is seen here that the women are engaged in the business of

agriculture primarily, one can easily conclude that they are from a rural
background and have not as much of knowledge about banking and urban

Bank has being a rescuer for them and helped them by guiding the basics
of banking mechanism. Until now JJSBL has provided them loan for utmost
3 times during the past 7 years Out of which 80000 was fully employed for
the purchase of agricultural equipments which led to the development of
their business venture

Being habitual in their banking operations and an old customer of the

bank they have repaid their loan successfully

Another business in which theyre engaged in is of sewing. So ultimately 7

women in the group have expertise in manufacturing hand-made Tiffin

3 women in the group have being actively participating in the very

popular programmes of conducted by JJSBL. These ladies sing chants over


Rural and poor financial background, having an accumulated saving of

140000rs, this group has managed to repay their loan of 140000rs at an
interest of 14%pa. Loan was fully used for the purchase of farming
equipments. Each member contributes 200rs under their savings account.
On the other hand there is no maintenance of books with gives a hint of

Name- Gulab Mahila Bachatgat

Area of operation- mahajan nagar, Jalgaon

Contact number- 8793563579

Account number- 8914

Founded on- 23rd October 2009

Number of member- 10

Monthly savings- 2009-2012- 100 Rs per member

2012-present- 200 Rs per member

Total savings- 50000/-

Monthly savings- 2000

Age- 60 months

Bank loan-300000 Rs

Business engaged in- small business units (self-employed)

Interest rate- 14% pa

Maintenance of books- yes, simple registers


This group is known for its zest and enthusiasm particularly in the
repayment of their loans. Their enthusiasm can also be seen in their daily
lives. These women manage their household work and have started
personalized businesses on their own. Some of them give mehendi

Similarly they are highly sensitive in the matter of their timely meetings
and conduct them regularly. They also encourage other ladies to
participate in their operations.

Until now, theyve borrowed a sum of 300000 Rs in the last 5 years. Now
theyre planning to borrow 50000 Rs additionally for their home

Moreover it was seen that after 4 years from their establishment these
women have increased their amount of monthly savings by 100 Rs per
member. This implies that JJSBL has encouraged their saving habits

All the 10 members have started their self-entrepreneurship. After talking

to them it was found that- JJSBL bank has helped them in ways like
recovering their household expenses, fees payment of their children, etc


There are only 10 members, which illustrates a lack of majority qualities.

Since the last 60 months of their association with JJSBL, this group has
borrowed a loan of 300000rs. Interest rate charged by the bank is 14%pa.
Animator says that they are planning to borrow an additional loan of
500000rs which will be fully utilized towards entrepreneurship. Monthly
saving of each member is just 200rs.

Name- Aadishakti Mahila Bachatgat

Area of operations- mehrun, Jalgaon

Account number- 8754

Founded on- 12th November 2008

Number of member-10

Savings- 100 Rs per member

Monthly savings- 1000 Rs

Total savings- 74000

Age- 74 months

Business engaged in- papad making

Bag making


Bank loan- 100000 Rs

Interest rate- 14%pa

Maintenance of books NIL


This group consists of basically rural based women. Thats the reason
why theyre not familiar and much literate about the banking
mechanism, but with the help of their other group women and JJSBLs
support, theyve learnt all the basic concepts of banking and ultimately
theyre exploring their talents.

They have started investing in recurring deposits and fixed deposits

which help them in doubling-up their invested money and encouraging
group savings.

Their leader bought a papad making machine. Eventually theyve

established their own papad making business unit. Some of them
started their own ventures of bag-making for Tiffin.

Being from rural background they are much familiar with farming
activities, so their farming activities and efforts have helped them to
repay their loan amount


This group has borrowed a loan of 100000Rs so far, at an interest rate

of 14%pa. Each member contributes up to 100RS pm from their end.
Utilization of bank loan was fully towards their business shows some
good indications of future expansions. Their accumulated savings are
74000rs.Other than this there is no maintenance of books yet

Name- shri laxmi mahila bachatgat

Area of operation- saptshringi colony, Jalgaon

Contact number- 9373339731

Account number- 8922

Founded on- 29th January 2009

Number of member- 14

Savings- 200 Rs per member

Monthly savings- 2800 Rs

Total savings- 200000 Rs

Age- 72 months

Business engaged in- stitching clothes

Papad making

Bank loan- 100000 Rs

Repayment of bank loan- within 12 months

Interest rate- 14% pa

Maintenance of books- savings and loan register


The members of this group were illiterate on the first place, but their
head person was literate.

Having an association with the bank has helped them to literate

themselves in some terms. At the start they didnt even know about
how to sign and used to give their thumb print on documents. But now
with help of JJSBLs employees they have learnt how to sign.

Another highlight about this group is that they started attending the
free computer workshops arranged by the bank. Surprisingly they
started using computers at home and everywhere. The bank loan of
100000 Rs which they borrowed in 2010 was sincerely repaid after.

Utilization of the bank loan was fully towards the purchase of sewing
machine. As we can see the bank loan amount wasnt enough to buy
papad making machines so henceforth they started making
handmade papads.


Bank loan of 1 lakh rupees has being effectively repaid by the bank.
Savings of each member is 200rs per month which help them to pay
the interest of 14% pa on their loan. Also their accumulated savings till
date is 200000rs through which they lend internal loans in their group
members. Maintenance and recording of their monthly transactions is
also seen here.


Name- Tejguru Mahila Bachatgat

Are of operation- Sai Prasad colony, Jalgaon

Head member- sarla koli

Contact number- 8087998273

Account number- 10287

Established on- 26th October 2013

No. of members- 12

Savings- 200 Rs per member

Monthly savings- 2400 Rs

Age- 15 months

Total savings- 310000

Business engaged in- papad making

Bank loan- 100000 Rs

Interest rate- 14%pa

Participation of member- active participation in JJSBLs events

Maintenance of books- monthly registers


Being a newly formed group, it has still managed to grow and show
rational development.

This group is mainly engaged in the occupation of papad making.

Unlike other groups which are mentioned above, Tejguru Mahila group
carries out the task in a very different and profitable way by
participating in various fun-fairs and sell their papads at
reasonable rates.

Bank has lent them a sum of rupees 1 lakh. When asked to the bank
about their activities I got to know that they regularly prepare the
nagli flour dough for making papads. These papads are then sold
to hotels and other restaurants. Bank identified their teamwork and
marketing skills and supported them by giving them an opportunity to
setup papad-stalls in last years Jalgaon janata fair

According to the bank employees, they got a very tremendous

response and they also earned a whooping amount of 70000 in just 3
days of the fair. They are now eagerly waiting for the next years fair of


Their monthly savings of 200rs per member has resulted in

accumulated savings of 310000 rupees. Members are also actively
taking part in group events, which helped them to repay their 100000rs
loan at an interest rate of 14% pa. They maintain books on regular
basis for recording their marketing operations.

1) JJSBL has established approximately 3800 SHGs all over Maharashtra.

They have lent up to 250000000 rupees of loan to these SHGs. 110
training sessions were arranged in the last financial year towards the
empowerment of these women
2) Analysis no. 2 gives us a picture that 3/4th of their loan share is being
given to SHGs in Jalgaon areas, followed by bhusawal. Out of the total
3800 SHGs of JJSBL, there are nearly 250 SHGs in Jalgaon and 179
SHGs in bhusawal. Other Talukas dont have much of impressive
3) With the help of analysis no. 3, we can conclude that 40% of the
women prefer papad-making activities & subsequently sewing,
farming and bag-making is preferred by 30%, 20% and 10% of women
4) Findings through case studies
Sharda Mahila SHG- JJSBL made a great and positive impact on their
financial hardship
Sant muktai SHG- no maintenance of accounting books
Gulab Mahila SHG-saving habits of the woman were encouraged
Adishakti Mahila SHG- learnt banking mechanism and got easy credit
Shri laxmi Mahila SHG- got benefited by learning computer basics in
JJSBL seminars
Tejguru Mahila SHG- got a huge market for their papad making
5) JJSBL provides loan to such SHGs at 14%pa interest rate which is quite
reasonable for both i.e., bank and SHGs
6) There are more number of female oriented SHGs than men SHGs
7) NABARD doesnt provide any subsidy to JJSBL.
8) Compared with other scheduled banks in Jalgaon district, this bank has
managed to give power to rural as well as urban women.


In my opinion, the outcomes demonstrate that JJSBL is making a

positive impact on the lives of the citizens in the state of Maharashtra
who are particularly from weaker sections. During the study I found out
that the bank has been allowing and supporting group formation,
encouraging savings and monitoring the inter-loaning structure.

Finance is an element which everyone needs. Regular and immediate

finance can play an important role for development of socio-economic
conditions of the people particularly the rural poor. Microfinance is
expected to play a significant role in poverty alleviation and rural
development particularly the rural women. The potential for growing
micro finance institutions in India is very high. Major cross-section can
have been benefited if this sector will grow in its fastest pace.

From the analysis of data it can be concluded that numbers of

members have started savings only after joining the groups while
majority of the members have no savings in the pre-SHG era. After
joining the groups most of the members solved their problems alone

1. Time constraints- Shortage of time was a very big constraint due

to which not all 3800 SHGs were studied effectively
2. Error in sampling- Out of the 6 SHGs samples which have been
selected for the purpose of data analysis, there may be
possibilities of vague, erroneous and volatile data
3. Size of data analysis- Since respondents have been in a tight
work and the majority of respondents educational background is
low creates some negligence in filling the questionnaire.
Therefore, these conditions might affect the quality of the paper
to some extents

This part will lay out some suggestions from my side to JJSBL as well as
the SHGs women with whom I responded. The suggestions are as

Bank should decrease the interest rate at least by 1%-2%, so that

there wont be any load on SHGs member. Instead of charging
higher interest rate, bank can share a percentage of profit from
SHGs business operations
Bank needs to keep a check on the amount theyre providing to
SHGs, due to corruption and other loop-holes
There should be regular maintenance of accounting books by the
There is a lack of post-training formal follow-up. JJSBL needs to
assist the women in making improvements in their working after
they have completed their theoretical training session
There are high fluctuations and differences seen in men, women
&combined SHG and also rural and urban SHG. Bank should
maintain a balance in them
There should be rotation amongst SHS leadership
Bank should partner with NGOs and academic institutions to
increase innovations

Following are the sources through which I gathered data
Annual Report Jalgaon Janata Sahakari Bank Limited -2013-14
V.J.R. Emerlson Moses, "Women empowerment through SHGs : A
micro study", International Referred Research Journal, Vol. II,
Issue 16, January 2011
News articles published by Divya Marathi relevant to JJSBL
Economic survey of Maharashtra 2012-13 conducted by
directorate of economic and statistics, planning department,
govt. of Maharashtra, Mumbai

Section A :
Name of the group :

Address of the group:

Membership composition and number of members :


Women : _____


Month and year of group formation/Age of the group : ________________

Funds available with the group as on date of this evaluation :
Source Amount

Members savings(monthly + total) ___________

Interest on loans ___________

Bank interest ___________

TOTAL ==========
B : Essential criteria that the group must fulfill
Score 1 if point is fulfilled and 0 if not. There are no scores in-between.
These criteria must be essentially present in every group; Even if one is
not present, it means the group requires focused attention for some more
1. The group is meeting regularly without being asked or reminded.
Comments :
______________________________________ Score : _______

2. There is at least 80% attendance at any given meeting.

Comments :
______________________________________ Score : _______

3. Loans are available to all members and not just the same few.

Comments :
______________________________________ Score : _______

4. There is a regular rotation of leadership and responsibility-sharing.

Comments :
______________________________________ Score : _______

5. Regular savings are made by all members.

Comments :
______________________________________ Score : _______

6. The groups documents and books of accounts are well-maintained,

without any assistance from JJSBL.

Comments :
______________________________________ Score : _______

7. The total Common Fund in the group (minus borrowed capital)

amounts to at least Rs.1,000/- per member.

Comments :
______________________________________ Score : _______

8. At least 50% of the group members (or their families) possess a

regular source of income.

Comments :
______________________________________ Score : _______
9. The group is in contact with other institutions for technical and/or
financial resource mobilization.

Comments :
______________________________________ Score : _______
SectionC :
Optional criteria that the group may fulfil
Score 1 if point is fulfilled and 0 if not. There are no scores in-between.
These criteria are optional; they need not be considered in deciding
whether to withdraw from a group unless the evaluator has some specific
concern in mind.
1. The group has at least one trained promoter and access to the
services of other trained promoters (e.g., in accounts, health and etc.)

Comments :
______________________________________ Score : _______

2. The group has an adequate place to meet where all are allowed to

Comments :
______________________________________ Score : _______

3. The group is successfully managing at least one Group Income

Generating Programme.

Comments :
______________________________________ Score : _______

4. The group has successfully conducted literacy, numeracy, and

functional education classes for its members.

Comments :
______________________________________ Score : _______

5. The group is involved in promoting some social and cultural activities

among its members and the community.

Comments : Score : _______


6. The group has made at least one effort to promote social justice
and/or prevent the exploitation of its own members by others.

Comments :
______________________________________ Score : _______

Section D : Other critical points

This section has YES/NO responses. Negative responses have to be given
serious consideration in deciding whether to phase out of the group.
1. Does the group have any liabilities against JJSBL?
Comments :
Yes : ____ No : ____ _________________________
2. Has the group undergone the full training syllabus with minimum 80%
attendance in each session?
Comments :
Yes : ____ No : ____ _________________________
3. Is the group following its rules and regulations properly, with sanction
and control mechanisms?
Comments :
Yes : ____ No : ____ _________________________
4. Is the group following collective decision-making processes?
Comments :
Yes : ____ No : ____ _________________________
5. Does the group have a clear vision and plans for the future?
Comments :
Yes : ____ No : ____ _________________________
Section E:
Summing Up
1. Essential criteria:
Maximum points obtainable: 12
Minimum points obtainable: 0
2. Optional criteria:
Maximum points obtainable: 8
Minimum points obtainable: 0
3. Evaluators main observations: ________________________________
4. Evaluators recommendations regarding phasing out by JJSBL :
________________________________ ___________________________
Date of evaluation Signature of Evaluator