Self Help Group's Muthoot Pincorp Bank Sindhanur

SELF HELP GROUPS
CHAPTER- I
RESEARCH DESIGN
1.1 INTRODUCTION:
Women are an integral part of every economy. All round development and
harmonious growth of a nation would be possible only when women are
considered as equal partners in progress with men. Empowerment of women
is essential to harness the women labour in the main stream of economic
development. Empowerment of women is a holistic concept. It is
multidimensional in its approach and covers economic political, social,
cultural and familial aspects. Of all these facts of women development,
economic development is of utmost significance in order to achieve a lasting
and sustainable development of society. Precision of micro-finance through
self-help groups is an important means for attaining women empowerment.
Microfinance, Women Empowerment and Self-Help Groups:
Microfinance is the extension of small loans to entrepreneurs,

to poor to qualify for traditional bank loans. It can also be described as
provision of small-scale financial services to clients who are economical
active in various urban and rural areas. According to the accepted definition,
'microfinance is the provision of thrift, credit and other financial services
and products of very small amounts mainly to the poor in rural, semi urban
and urban areas for enabling them to raise their income level and improve
living standards.' Of late, microfinance has become a key word with
Governments, NGOs and international institution like the World Bank. It has
GOVERNMENT COLLEGE-SINDHANUR Page 1
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proven to be effective and popular measure in the ongoing struggle against

poverty as well as for women empowerment.
The micro finance industry, which began in 1976 with the establishment of
Grameen Bank in Bangladesh, is now a worldwide movement comprising
thousands of specialist, banks credit unions, co-operatives, village credit
societies, NGOs and charities spanning across both the rich and the poor
countries. The common purpose is to extend the outreach of banking
services especially business credit to those who do not quality for normal
bank loans. Micro credits are granted at commercial interest rates, though at
much lower rates than those charged by the informal moneylenders.
Microfinance has several other developmental objectives like mobilisation

of savings. It has also been used as an inducers in different community
development activities as an entry point in the community organizing
programme and as an ingredient in a larger education or training exercise.
All the programmes aim at the empowerment of poor people especially
women and eradication of poverty.
The provision of adequate doses of microfinance in time to the women folk

for their personal, family and business purposes by a dependable agency
would naturally generate confidence and real among them for the
performance of their activities. It is based on the recognition that the
capacity of the poor women for entrepreneurship would be encouraged with
the availability of small scale loans and would introduce them to small
enterprise sector.

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In order to enlarge the flow of credit to the hard-core poor, the NABARD
launched a scheme of organizing them into self-help groups (SHGs) and
linking the SHGs with the banks, in 1992 the scheme is broadly on the
pattern devised by the Bangladesh Grameen Bank. Under the scheme, poor,
preferably the women are organized in the SHGs and banks are financing
these SHGs for lending money and those poor who are eligible for
concessional refinance from the NABARD.
There are three district modes to route the credit to micro-enterprises. Under
the first mode, banks lend directly to the SHGs for lending to micro-
entrepreneurs. Under the second mode, banks provide loans to the NGOs for
lending to the SHGs and ultimately to the micro-entrepreneurs. Under the
third mode, banks extend credit to the SHGs with the NGO as the facilitator.
Keeping pace with the banks, the Govt. of India has taken a number of steps
to alleviate the poverty of the villages. A number of programmers have been
designed to augment the flow of credit to the poor with varying degree of
implicit and explicit subsidies.
1.2 STATEMENT OF THE PROBLEM:

SELF HELP GROUPS
The comprehensive statement of problem can be thus started as “SELF

HELP GROUPS IN MUTHOOT FIN CORP” In Sindhanur city.
1.3 OBJECTIVES OF THE STUDY:
1. To study the need and importance of micro-credit of economically

disadvantage population.
2. To study the role & importance of microfinance institutions in offering

micro financing of economically weaker section of the society.
3. To study the functions and services offered by micro-financial institutions

in Indian financial market.
4. To study the role of Government in promotion of micro finance

institutions.
5. To know the opinion of beneficiaries of self help groups.
6. To study rules, regulation and working of self help groups
1.4 SCOPE AND IMPORTANCE OF THE STUDY:

SELF HELP GROUPS
The present research was to study the critical study of self help groups with
reference to Raichur District so far, this type of study on self help group has
not been attempted in Sindhanur city. Hence it is necessary to work in this
area. This would be of great help to the implementing agencies to bring
necessary improvements in the self help groups for attaining the overall
empowerment of women & men. The knowledge on these aspects could be
used to develop strategies to motivate self help group members for their
enhanced participation in the group. The outcome of the study would
suggest the factors that are responsible for the good performance of self help
groups formed by Government and Non Government organization. Further
the study would highlight the role and importance of micro-credit,
microfinance institution; role of government and self help groups in offering
micro-credit. The results of this study would be offer important input to
planners, policy maker, Non-governments organizations for framing policies
to empower the women through self help groups.
The success of the programmers depends upon its critical study of self help
group. Hence attempts have also been made to find out the benefits attained
after implementation of self help groups and effectiveness made under this
study. The study also surveys the problem faced by the members of the
groups. The findings of which can be used for planning programmers and
better strategies can be evolved based on the results for the effective
functioning of self help groups.
1.5 RESEARCH METHODOLOGY:
 Sources of Data Collection.

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PRIMARY DATA:
The primary data is collected through has collected through

approaching the official and interacting with the branch manager and staff
members .Primary Data collected by various sources which includes asking
direct questions and interview, group discussion’s.
The study is both empirical and descriptive; the primary data have been
made use of for the analysis.
SECONDARY DATA:
Secondary data collected by Muthoot Fin corp Sindhanur branch and The
group discussion was also made to cross-check the collected information,
also informal interview with detailed checklist has been canvassed with
community leader, non-governmental organization and promoting agency
personnel to have deeper understanding of the problems. The overall
progress of self help groups is being assessed with the help of secondary
data which are collected from published sources like Noted publication of
Government of India. Viz. Yojana, Kurukshetra, RBI bulletin, India 2008,
Annual reports and Records of NABARD, District Rural Development
agency (DRDA), District Urban development agencies, collection of
research in available to other universities agencies in comparative study,
preparation of profile from various magazines and research journals
periodicals, newspaper, internet. Opinion, interviews, extrudes of executive
of corporate houses from relevant articles etc.
The sample population for the field survey comprises a total of 200
respondents from Raichur Districts. The sample comprises 50 members of

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SHGs from the Sindhanur municipal corporation 150 members of SHGs

from Sindhanur city and 189 members of SHGs from 4 taluka (Rural) in
Raichur District. Personal interviews with the officials concerned are also
conducted to get the needed information for the analysis.
1. Book’s.
2. Annual reports of Muthoot Fin corp.
3. Published articles.
4. By Internet.
1.6 LIMITATION’S OF THE STUDY:

1. The present study is carried out on an individual basis.
2. It needs high skilful persons
3. The present study has to be considered keeping in mind this fact while
writing this report. The findings of study can be applied to similar district or
region,
1.7 OVER VIEW OF THE CHAPTERS:
THIS STUDY IS DIVIDED INTO FIVE CHAPTERS.
Chapter I: - Research design

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It gives the information about the process of the study, which includes
statement of problem, objectives of the study, limitation of the study,
methodology and chapter scheme.
Chapter II: -Industrial Profile & Company profile

This chapter includes industry profile and organization used data collection
i.e. MUTHOOT FIN CORP
Chapter III:- Theoretical back ground of the study

This chapter includes theoretical back ground of self help groups.
Chapter IV: - Analysis & Interpretation

This chapter includes data analysis & interpretation of the collected, which
is most important part of the project report.
Chapter V: - Findings & suggestions
This chapter includes findings & suggestions and conclusion of study.
Chapter-II
COMPANY PROFILE
Muthoot Finance Ltd is the largest gold company in India. The company

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provides personal and business loans secured by gold jewellery, or Gold

Loans, primarily to individuals who possess gold jewellery but could not
access formal credit within a reasonable time, or to whom credit may not
be available at all, to meet unanticipated or other short-term liquidity
requirements. The company is headquartered in Kerala. In addition to their
Gold Loans business, the company provides money transfer services
through their branches as sub-agents of various registered money transfer
agencies. They have commenced providing collection agency services.
They also operate three windmills of 1.25 MW each in the state of Tamil
Nadu. Muthoot Finance Ltd was incorporated on March 14, 1997 as a
private company with the name The Muthoot Finance Pvt Ltd. The
company is promoted by M G George Muthoot, George Thomas Muthoot,
George Jacob Muthoot and George Alexander Muthoot. The company's
operating history evolved over a period of 70 years since M George
Muthoot (the father of the promoters) founded a gold loan business in 1939
under the heritage of a trading business established by his father, Ninan
Mathai Muthoot, in 1887. In the year 2001, the company obtained the
license from RBI to function as an NBFC. In the year 2005, as per the
scheme of amalgamation, Muthoot Enterprises Private Ltd was
amalgamated with the company with effect from March 22, 2005. In May
16, 2007, the name of the company was changed from The Muthoot
Finance Pvt Ltd to Muthoot Finance Pvt Ltd. During the year 2008-09, the
company opened 278 new branches across various states. Also, they
opened regional offices in Sales and Visakhapatnam. In November 18,
2008, the company was converted into public limited company and the

SELF HELP GROUPS
name was changed to Muthoot Finance Ltd. They obtained fresh RBI
license to function as an NBFC without accepting public deposits,
consequent to change in name. During the year 2009-10, the company
added 620 new branches. As per the scheme of de-merger, the radio
business of the company was de-merged and transferred to Muthoot
Broadcasting Pvt Ltd with effect from January 01, 2010. The company
opened 316 new branched between April 2010 to August 2010. As of
August 31, 2010, they had 1,921 branches located in 20 states and two
union territories in India. The company intends to continue to grow their
loan portfolio by expanding their network through the addition of new
branches.
VISION:-
“Be the most trusted, globally diversified institution enriching lives of the
masses while contributing back to the society.”
MISSION:-
“To build leading customer-centric businesses enabled by technology,

maintaining the highest standards of corporate governance and
uncompromising values.”

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CHAPTER – III
THEORETICAL BACKGROUND OF THE STUDY
3.1. INTRODUCTION:
Self help groups (SHGs) are small groups of poor people. The member of an
SHG faces similar problems. They help each other to solve their problem.

SELF HELP GROUPS
SHGs promote small savings among their members. The savings are kept
with the bank. This is the common fund in the name of the SHG.
The SHG give small loans to its members from its common fund. After six
months, if the SHG satisfies the Bank as per the check list for quality, Bank.
3.2 HISTORY OF SHG:
Evolution of SHGs in India
The women Self Help Group (SHG) model is the home-grown model.
Primarily, it results from NGOs searching for community based institutions,
which may help the poor to overcome their vulnerability and lack of
resources. The Self-Help Promoting Agencies (SHPAs) quickly found that
savings and loans could be the binding factor for groups to remain active for
longer periods and pursue their own agenda. Probably, the Bhagavatula
Charitable Trust in Visakhapatnam district in Andhra Pradesh is the first
organisation to promote women savings and credit groups in rural areas of
the country. In the mid-eighties, there were a few similar experiments,
mostly in Andhra Pradesh and other Southern states. Initially, it was mostly
savings centred groups, as banks did not have any provision to have linkages
with informal groups. Even the SHG savings accounts used to be opened in
the name of 2 or 3 individuals in the group. Groups used to circulate their
own savings as small loans among their members. Some SHPAs have
promoted networks of SHGs, commonly known as ‘feder-ations’ to facilitate
the intergroup circulation of funds. Networks like SHPAs have also accessed
external grants and loan funds for on-lending. In 1987,NABARD
provided`1 million as grant or soft loan to MYRADA to lend to its groups.
SELF HELP GROUPS
Similar experiments were initiated by other prominent NGOs like

Development and Human Action (DHAN) and Cooperative Development
Fund (CDF), with assistance from national and international donors like Tata
Trusts and Ford Foundation. The result of MYRADA experiment and similar
experiments by others led to many innovations and path breaking projects,
policies and programmes and institutional development District Rural
Development Authority .
(A) PRE-INDEPENDENCE ;
Grameen Bank (GB) has reversed conventional banking practice by

removing the need for collateral and created a banking system based on
mutual trust, accountability, participation and creativity. GB provides credit
to the poorest of the poor in rural Bangladesh, without any collateral. At GB,
credit is a cost effective weapon to fight poverty and it serves as a catalyst in
the overall development of socio-economic conditions of the poor who have
been kept outside the banking orbit on the ground that they are poor and
hence not bankable. Professor Muhammad Yunus, the founder of "Grameen
Bank" and its Managing Director, reasoned that if financial resources can be
made available to the poor people on terms and conditions that are
appropriate and reasonable,” these millions of small people with their
millions of small pursuits can add up to create the biggest development
wonder."As of July, 2004, it has 3.7 million borrowers, 96 percent of whom
are women. With 1267 branches, GB provides services in 46,000 villages,
covering more than 68 percent of the total villages in Bangladesh.
(B) AFTER INDEPENDENCE:

SELF HELP GROUPS
Since 1947 ‘Mysore Resettlement and Development Agency’ (MYRADA)

has promoted Credit Management Groups (CMGs). CMGs are similar to
self-help groups. The basic features of this concept promoted by MYRADA
are: 1] Affinity, 2] Voluntarism, 3] Homogeneity and
4] Membership should be limited to15-20 persons. Aim of the CMG is to

bestow social empowerment to women. In 1991-92 NABARD started
promoting self-help groups on a large scale. And it was the real take-off
point for the ‘SHG movement’. In 1993, the Reserve Bank of India also
allowed SHGs to open saving accounts in banks. Facility of availing bank
services was a major boost to the movement.
(C ) 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 have more than 20 members)
The group need not be registered.
(D) MEMBERSHIP:
From one family, only one person can become a member of an SHG. (more
families can join SHGs this way) The group normally consists of either only
men or only women. Mixed groups are generally not preferred Women's
groups are generally found to perform better. (They are better in savings and
they usually ensure proper use of loans) Member 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

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well as poor class, the poor may hardly get an opportunity to express
themselves).Some Common Factors for Membership in a SHG Women .
(E) 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 help them to understand each other's difficulties better)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 to know about the SHG easily. It also helps to build
trust among the SHG member) Maintaining 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.
(Ithas 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 his job) Books to be
maintained by a SHG
(F) Vision:
 To establish a society, which has no exploitation, is self-reliant and

equitable.
(G) Mission:
Self help group’s is committed to achieve the following.

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 Social and economic empowerment of target group (Women,

disadvantaged / under privileged group).
 Active participation of target group through decentralization and good

governance.
 Promotion of organizational activities by networking / coordination

with supporting organizations and line agencies.
 Minutes Book
(H) SAVINGS AND LOAN REGISTER
Shows the savings of each Members separately and the group as a whole.
Details of individual loans, repayments, interest collected, balance etc are
entered here.
(I) WEEKLY/ FORTNIGHTLY /MONTHLY REGISTER:-
Summary of receipts and payments are updated in every meeting and are
entered in weekly/ Fortnightly /Monthly Register.
(J) MEMBER’S PASS BOOK
Individual member's pass books in which individual's savings and loan

balance outstanding is regularly entered (This encourages regular
savings.)Group Maintenance Fund To supplement the group fund, an amount
of Rs.15 per member is to be collected initially on group formation which
will be in addition to the group savings. This will cover the cost of

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stationary, rubber stamp, register, postage etc. After six months anotherone
time collection of Rs.10 is also to be made.
The members of the group also contribute a minimum of the group of rupees
two per month per member as Group Maintenance Fund. This could be
utilized for certain minor purpose like travel allowance for bank visits,
purchase of stationary etc. The amount collected for group maintenance may
vary from group to group or from NGO to NGO. The amount is collected
according to the instructions given by NGO's.
3.3 MEANING, DEFINITION AND PRINCIPLE OF SELF

HELP GROUP’S:
(A) MEANING OF SELF HELP GROUP’S
It is combination of two or more than two person’s agreed to carrying their

business to meet common aim’s and objectives.
(B) DEFINITION OF SELF HELP GROUP’S
A self help group is defined as a "self governed, peer controlled information

group of people with similar socio-economic background and having a
desire to collectively perform common purpose."

SELF HELP GROUPS
(C)PRINCIPLE OF SELF HELP GROUP’S

Self help group’s are opened on basis of the principle is which is established
for each for all and all for each.
3.4 MAJOR FUNCTIONS OF A 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 member’s
members take a step towards self dependence when they start small savings.
They learn financial discipline through savings and internal lending
(Advantage: This is useful when they use bank loans)
b) Internal lending:
The SHG should use the savings amount for giving loans to members. 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 problem 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.

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d) Taking Bank Loan
The SHG takes loan from the bank and gives it as loan to its members
3.5 LINKING OF SHG TO BANK:
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. The following steps will explain how this can be done.
Step 1: Opening of SB account for the SHG
The Reserve Bank of India has issued instructions; permitting banks to open
SB account of SHGs.SB account in the name of SHG could be opened after
obtaining from the group of the following documents.
a) Resolution from the SHG
The SHG has to pass resolution in the group meeting, signed by all
members, indicating their decision to open SB account with the Bank. This
resolution should be filed with the Bank.
b) Authorization from the SHG
The SHG should authorize at least three members, any two of whom, to
jointly operate upon their account. The resolution along with the filled in
application form duly introduced by the promoter may be filed with the
Bank Branch.
c) Copy of the rules and regulation of the SHG

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This is not a must. If the group has not formulated any such rules or
Regulations loans can be sanctioned without them. A savings bank account
pass book may be issued to the SHG. This should be in the name of the SHG
and not in the name of any individual’s.
STEP 2: CONDUCT OF INTERNAL LENDING BY SHGs
After savings for a minimum period of two and three months, the common
savings fund should be used by the SHG for lending to its own members.
The purpose, terms and conditions for lending to its members, rate of
interest etc., may be decided by the group through discussion during its
meeting. RBI and NABARD have permitted the members to decide on these
aspects. The interest is usually kept as two or three rupees per hundred
rupees per month. The interest per month is better understood in villages
than annual interest. Simple and clear books of account of savings and
lending should be kept by the SHG.
STEP 3: ASSESSMENT OF SHGs
Assessing of Self Help Groups under SHG bank linkage programmes S.No.
Category Indicators Rating
3.6 GROUP'S INTERNAL LOANING:
a) Utilization of savings by internal loans
b) Interest rate on group's internal loan

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c) Group's internal Loan recovery rate
d) Members benefited out of group's internal loaning above 90%
51% to 90 % and 30% to 50% Depending upon purpose 18% to 30% and
Less than 18% 100% Between 80 % to 95% Between 70% to 80% More
than 50%.Between 25% to 50% Less than 25 %.
Since last one decade, Non Governmental Organizations (NGOs) as

well as Voluntary Associations (VAs) are actively involved in the formation
and promotion of collectives of poor women known as Self Help Groups
(SHGs) throughout the State. The State Government-sponsored
Kudumbasree Programme also has organized Neighborhood Groups (NHGs)
both in urban and rural areas. The efforts of the NGOs, VAs and the
Kudumbasree are aimed at sustainable development and the empowerment
of poor women, helping them to organize themselves, inculcating savings
habit in them, building up their capacity, enabling them to be liberated from
moneylenders, to become partners in the development process of the
country, and to be self-reliant and empowered.
3.7. FUNDS FOR PROMOTION OF SHGS AND

FEDERATIONS:
NABARD is the principal source of funding for strengthening SHG bank
linkages. Since the inception of the SHG Banking programme, i.e .from
1992 up to March 2010, NABARD provided 1.08 billion to 2,911 SHP As
for promoting 492,276 SHGs (NABARD, 2010). The average amount was
found to be ` 2,200 per SHG. NABARD provided support to a variety of
SHP As like Cooperative Banks, Regional Rural Banks (RRBs), NGOs,
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Farmers’ Clubs and Individual Rural Volunteers (IRVs). It has been sharply
focusing on underserved states and regions. NABARD has been increasing
the promotional amount significantly in recent years. Further, NABARD has
been facilitating training and exposure to numerous primary and secondary
stakeholders year after year. A total of ` 99.3 million (NABARD, 2010) was
spent on providing training and exposure in 2009-10. Another important
source of funds is the SGSY programme of Government of India.
OCCUPATION-WISE DISTRIBUTION OF SHG MEMBERS
Occupation All-Men AW Mixed Total
Agriculture 41 346 99 486
Dairy 43 107 11 161
Business 65 67 86 218
Caste Occupation 0 0 7 7
Skilled Labourer 51 0 52 103
Unskilled Labourer 392 422 11 825
Housewife 0 254 10 264
Total 592 1196 276 2064

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FORMAL EDUCATION OF SHG MEMBERS-
Education Level All Men All Women Mixed

Total
Illiterate 22 27 12
61
Literate 64 360 34
458
High School 6 19 1
26
College 6 6 9
21
Total 98 412 56
566

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SERVICES OFFERED BY SHG FEDERATIONS
Financial SHG strengthening (or

supporting) Services
Credits (or loans) Auditing of SHGs
Savings Grading (or appraising)
Insurance Book keeping
Pension Training
Housing loan Monitoring
Hire purchase Bank linkage and other
linkages
Problem solving

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BUSINESS RELATED SERVICES OF SELF-HELP-GROUP’S

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Business development/ Livelihood Services Social (or

developmental initiatives)
Marketing services Domestic violence
Processing and value addition Child marriages
Business plan development Gender
discrimination
Promotion of entrepreneurship Child labour

programme
Livelihood opportunities for members Social

discrimination
Cattle management Rights and
entitlements
Supply of inputs – E.g. agriculture inputs Drinking
water
Bulk purchase of required material Health
initiatives
Family
counseling centers
Anti-liquor
campaigns
3.8 CHARACTERISTICS SELF HELP GROUP’S:
 Homogeneous
 Common interest

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 Voluntary in nature
 Mutual self-help
 Non-political
 Rotation of leadership
 Participatory
3.9 CREDIT UNIONS:
The concept of self-help and mutual help existed in our country prior to any
organized or formal form of self-help and mutual help. The history of
organized self-help and mutual help may be traced back to the origin of the
concept of credit unions. The concept of credit unions was a development in
the field of thrift and credit. A credit union is a group of people who join
together to save money and to make available loans to each other at a low
rate of interest. A credit union is a financial co-operative organized by a
group of people with a shared field of membership. The origin of formal
credit unions is from Germany towards the middle of the 19th century. Even
before the formal credit union came to India, by the first half of twentieth
century, there existed different kinds of such informal systems centered
around religious institutions, through which the poor were encouraged the
habit of savings to meet some urgent needs of the family. As far as Kerala is
concerned, there existed "Kuri", "Payattu" and "Chitti" since long ago, in
different forms at different regions, for petty family consumption utility, as
well as for major investments in income-generation activities. The concept
of formal credit union was very well accepted by the Non-Governmental
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Organizations in karnataka, engaged in social welfare, social services, and

social development fields. The religious institution-based informal systems
were strengthened and merged into the formal system, like credit unions.
3.9 COOPERATIVE MOVEMENT:
From the idea of credit unions, Cooperative movement came into existence.
Development of Cooperative has been envisaged as a significant strategy to
build up strength in the people. With limited means, the co-operative
movement aims at saving the rural poor, small farmers, marginal farmers,
agricultural laborers and small artisans from exploitation by moneylenders.
Today, India has a wide network of primary agricultural credit societies at
village level. At district and state level, co-operative federations have also
been set up in almost all states. According to Karmakar (1999), the ideas
based on cooperation, stressing thrift and mutual help among the peasants,
emerged, which led to the Cooperative Credit Societies Act. Under this act
small cooperative societies were to be organized to meet the short-term
credit needs of the farmers. Adoption of the Act in 1904 marked the
beginning of efforts to build an institutional finance system for agriculture.
According to (Puhazhendhi, 2000), at one stage, cooperative credit
institutions in the country were considered as an option to bridge the gap
between the poor and the Banks. However, the poor could not derive the
intended benefits from the cooperatives mainly because the size of the
cooperative societies was too large and people of diverse interests were
grouped together. Economic and caste barriers were too strong for the people
to work together as one cohesive unit.

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3.10REGIONAL RURAL BANKS:
The partial nationalization of the Imperial Bank of India and the formation
of a large number of new branches after 1955, coupled with the continuing
failure of cooperative credit institutions, led to the nationalization of 14
largest commercial banks in 1969. This led to a significant expansion of the
number of rural branches for the purpose of monetising the rural economy.
However, with increasing emphasis on 'priority' sector loans targeted at the
poor and the weaker sections of the society, Regional Rural Banks (RRBs)
were formed from 1975 onwards.Karmakar, 1999) According to Karmakar,
almost all RRBs made losses from their lending operations and about 70
percent have accumulated losses in excess of their share capital, thereby
becoming legally bankrupt. While these banks suffer very much from the
general problem of the commercial banking system non-viability was built
into their very concept. Staff costs levels, which were initially expected to be
low, are close to that of commercial banks and the management, including
that at the board level, is considered unsatisfactory. According to
Puhazhendhi, the RRBs could not fully achieve the goal as the issue of non-
viability plagued them. Further, the fundamental malady of rural credit
system has been the high level of overdue and the resultant bad debts, which
threatened the basic structure of rural lending, making it non-viable and
functionally ineffective (Puhazhendhi, 2000).
3.11 NGO INITIATIVES:
Taking into consideration the failure of various attempts by formal credit

unions, cooperatives and the RRBs, and the plight of the rural poor, as far as

SELF HELP GROUPS
credit needs are concerned, NGOs started organizing them into community
based organizations known under different names, like credit unions, Mahila
Mandals, Mahila Samajams etc. Experience shows that the key to success of
these groups and organizations lies in ensuring full cooperation and
participation of people at the grassroots level. Under various poverty
alleviation/eradication efforts, these days, both by the Governments as well
as NGOs, several types of community based organizational structures have
come up throughout the country enabling the poor women to get out of the
clutches of money lenders.The grassroots level women’s collectives, better
known these days as the SHGs, are the primary unit, common to most of the
NGOs in terms the ‘empowerment wing’ of the women’s movement. The
women’s collective has been accepted by NGOs as a standard entity at the
village level, consisting of 10 or even as many as 60 women. Some of the
Women’s NGOs who had taken initiatives in this field were Cooperative
Development Foundation (CDF), Andhra Pradesh; Working Women's Forum
(WWF), TamilNadu; Self Employed Women's Association (SEWA), Gujarat;
and Women's Development Programme (WDP),Rajasthan. Besides the
above NGOs, there were others like the Mysore Resettlement and
Development Agency (MYRADA) in Karnataka; the Professional Assistance
for Development Action (PRADAN) in Tamil Nadu; the Rayalseema Seva
Samithi (RASS) and Youth Charitable Organization (YCO) in Andhra
Pradesh; the Utkal Mahila Sanchaya Vikas (UMSV) under the aegis of
People's Rural Education Movement (PREM); the Gram Vikas in Orissa
etc.,

SELF HELP GROUPS
3.12 SUCH INITIATIVES IN OUR NEIGHBORING

COUNTRIES:
The Bangladesh Grameen Bank (BGB) is considered by some as the

initiators of SHGs. And the spread effect of Grameen Bank has crossed the
oceans and reached India. NGOs have been making attempts to replicate the
Grameen Bank model with certain adaptations to make it suitable to the
local requirements in India. ADITHI (NARI NIDHI), Patna; Loyolam Bank,
Manipur; SHARE, Andhra Pradesh; SRI, Kollengode, in Palakkad, Kerala
etc. are some of the NGOs which follow Bangladesh Grameen Bank model.
Bangladesh Rural Advancement
Committee (BRAC), Bangladesh and Production Credit For Rural Women

(PCRW)- Nepal, are other models of SHGs in our neighbouring countries.
The SHG system in India is much more than a micro-credit concept. There is
a marked difference between the concepts of SHGs, as it exists in India and
in Bangladesh. The SHGs in India, as developed by NABARD starts with
saving and then to credit however, the SHGs of Bangladesh starts with credit
and then to saving.
3.13 THE CONCEPT OF SHG:
The concept of Self-Help Group (SHG) is not something very new. Katz
and Bender (1976) provided a comprehensive definition of self-help groups.
"Self-Help Groups are voluntary, small group structures for mutual aid and
the accomplishment of a special purpose. They are usually formed by peers,
who have come together for mutual assistance in satisfying a common need,

SELF HELP GROUPS
overcoming a common handicap or life-disrupting problem, and bringing

about desired social, and/or personal change". The initiators and members of
such groups perceive that their needs are not or cannot be, met by or through
existing social institutions. Self- Help Groups emphasize face-to-face social
interactions and the assumption of personal responsibility by members. They
often provide material assistance as well as emotional support.
(A) THE EMERGENCE OF SHGS IN INDIA
The emergence of the concept of Self Help Groups (SHGs), as we know it

today in India, is an outcome of several experiments conducted at the
Savings and Credit Management Groups (SCMG), sponsored by Mysore
Resettlement and Development Agency (MYRADA). After experimentation
with the cooperatives in some projects, MYRADA felt that a shift top an
alternative credit system for the poor was required along with the efforts to
make the existing delivery system, not only more appropriate and effective
but also willing to accept and relate to an alternative system with its own
rules and management. It was in this MYRADA project, that National Bank
for Agriculture And Rural Development (NABARD) experimented the pilot
project for the development of the SHG system in India. In 1986-87,
NABARD supported and funded an action-research project on SCMG of
MYRADA, for assessing its adequacy as an instrument to help the target
groups. The main objective of this
Pilot project was to evolve supplementary credit strategies for meeting the
credit needs of the poor by combining flexibility, sensitivity, and
responsiveness of informal credit system with the financial resources of the

SELF HELP GROUPS
formal credit institutions. During 1991-92, NABARD launched 92 pilot

projects on linking SHGs with Banks, in various parts of the country. In July
1991, RBI advised the banks to participate in the pilot project and to extend
finance to SHGs as per the norms and guidelines of NABARD. In February
1992 detailed guidelines were issued to the commercial banks, explaining
the modalities of the pilot project. Later the scheme was made applicable to
RRBs and Cooperative Banks in May 1993. The NABARD guidelines to
banks for implementation of the pilot project allowed ample flexibility to the
participating banks to innovative responses and observed variations in the
grassroots level situations. It aimed at providing credit to the informal SHGs
of rural poor, through the banking system, with minimal documentation and
simplified procedures.
(B) MODELS OF BANK LINKAGE
For the SHG system developed and promoted by NABARD, they took the
initiatives for linkage between SHGs and NGOs on the one hand, and the
banks on the other. Several models of SHG-Bank linkage programme were
tried out. As a result of these experiments, three most commonly used
Models throughout the country came into existence. In Model I, the SHGs
were organised and promoted directly by Banks. The bank provided credit in

SELF HELP GROUPS
bulk directly to the SHG, which might be an informal or formal body. The
SHG, in turn, would undertake on-lending to its members, on terms and
conditions agreed upon mutually among them. NABARD provided refinance
assistance to the lending Bank. In this Model there was no involvement of
NGOs But in Model II, NGO organized and promoted the SHGs, and then
referred those SHGs to the Bank for lending directly either to the SHGs or to
individual members of the SHGs. Here, the NGO stood only as a support to
both the Bank and the SHGs, for monitoring and evaluation of the
projects,proper functioning of the SHGs, repayment of the loans, provided
training to members of SHGs, etc. NABARD provided refinance to the
lending Bank. And in Model III, the SHGs were organised and promoted by
NGO and then referred to the Bank for linkage, and the Bank provided
finance directly to the NGO for on-lending either to the SHGs or to
individual members of SHGs. The NGO was fully responsible for making
sure the repayment of the loan to the Bank, with proper monitoring and
evaluation of the projects, as well as of the proper functioning of the SHG,
and training of members of SHGs. NABARD provided cent percent
refinance to the lending Bank. However, for the present study only the SHGs
of poor women under Model II and Model III were taken into consideration,
where there was involvement of NGOs in organizing, linking and promoting
the SHGs. As per NABARD, in Kerala, there are 5,629 SHGs under Model
I, 13,403 under Model II and 14, 696 SHGs under Model III, linked to
various financial institutions like Commercial Banks, Regional Rural Banks
and Cooperative Banks (NABARD, 2003-2004)
(C) ROLE OF NGOS

SELF HELP GROUPS
As per NABARD guidelines, the NGOs have been playing an active role in
fostering the growth of SHGs for furtherance of their basic objectives. It has
been observed that NGOs, as a fundamental principle of their developmental
role, always aim to make the rural poor economically self-sufficient through
development of individuals with group support of his fellow villagers. This
traditional concept took an interesting turn with the introduction of linkage
of the SHGs with the formal banking system, started by NABARD in India
through Pilot Project from the year 1991-92. Consequently, the role of
NGOs also assumed an additional dimension to economic up lift ment of the
poor. In the backdrop of these developments and the traditional promotional
activities, undertaken by the NGOs for the SHGs, the NGOs are expected to
support the SHGs in the following areas: _ to motivate the rural people to
organise themselves and to form into self help groups at village level: _ to
educate, train the group members in managing the group activities like
maintenance of books of accounts, conducting meetings, management of
funds, etc; _ to inculcate, promote thrift and savings habit among the group
members and to help in institution building along with the development of
individual;
 to help the SHG in identifying raw materials and local resources;
 to help the group members to upgrade their skills and technology to

make best use of resources;
 to make available credit facilities and to act as a link between the rural
poor and the bank;

SELF HELP GROUPS
 to educate and train the group members to utilize credit properly and
to improve their economic conditions;
 to help the group members in exploring markets for their products;
 to work as facilitator in the meetings of the SHG; and to act as friend,

philosopher and guide to the SHGs.
(D) THE KUDUMBASREE PROGRAMME
The anti poverty initiatives by the State Government with assistance from
the Central Government, like the Development of Women and Children
in Rural Areas (DWCRA); the Urban Basic Services (UBS); the Urban
Basic Services for the Poor (UBSP); Community Based Nutrition
Programme and Poverty Alleviation Project (CBNP & PAP); the Prime
Minister's Integrated Urban Poverty Eradication Programme (PMIUPEP)
etc. were implemented through Self Help Groups of women.
TheSwarnJayanti Shahari Rozgar Yojana (SJSRY); Development of
Women and Children in Urban Areas (DWCUA); in urban areas, the
Swarnajayanti Gram Swarozgar Yojana (SGSY)
in rural areas, and various other development programmes of the

Government are being implemented through community based
organizational structures created for the purpose.
In Kerala, in order to implement the above-mentioned programmes and

schemes under the aegis of Kudumbasree, the community based
organizational structure created is known as Community Development
SELF HELP GROUPS
Society (CDS)ii. The CDS has a three-tier organizational structure. At the

grass root level every poor family in a Neighbour hood, each represented by
a woman, is organized into a Neighbour hood Group (NHG), covering about
20 to 40 households. A team of five barefoot organizers, consisting of
Community Health Volunteer, Community Infrastructure Volunteer,
Community Income Generation Volunteer, Secretary and President are at the
helm of every NHG. The NHGs are federated at ward level Area
Development Societies (ADSs) and then further networked into Community
Development Societies (CDSs) at the Panchayat, Municipality or
Corporation level (Economic Review, 2001). The NHG/ADS/CDS system
was initiated in Alappuzha Municipality while implementing UBS and
UBSP Programmes, during the eighth Five Year Plan,
and then extended to all the Corporations, Municipalities and Gram

Panchayats through out Kerala. Kudumbasree is a Programmeiii under the
Poverty Eradication Mission (PEM) of Government of Kerala. The PEM is a
Government Organised Non- Governmental Organization (GONGO),
directly supervised by the Local Administration Department of the
Government of Kerala. Kudumbasree means prosperity of the family. It
indicates the approach of the State PEM, which was launched on 1st April
1999 as a partnership of the State Government, Central Government, Local
Government and the National Bank for Agriculture and Rural Development
(NABARD) for eradicating poverty. The principal objective of
Kudumbasree is the eradication of absolute poverty from the State of Kerala
within a decade and the strategy slogan of the Mission is "reaching families
through women and reaching the community through families". Women

SELF HELP GROUPS
empowerment initiatives, micro finance operations, micro enterprise and

convergent action constitute the core activities of Kudumbasree, carried out
through organizations of women below the poverty line. Kudumbasree
works through a community based organization of the poor called
Community
Development Society (CDS), which has a three-tier structure as explained

above. The CDS plans become the anti-poverty Sub-plan of the Village
Panchayat or Municipality, for which about one third of the development
resources of the local government are earmarked. Under the local
government laws, CDS is empowered to identify the beneficiaries of anti-
poverty programmes and take up community - contracting of local
development works. Thus the CDS system has the right of voice, the power
of choice and the entitlement of action - that is, real empowerment. A
significant achievement has been the setting up of a process of genuine
empowerment of women - avoiding patronage in identification of the poor,
improving knowledge about benefits and services, enhancing capacity to
access guaranteed entitlements, social and economic security through self-
help, expanding control over resources meant for the poor, strengthening
demand for improvement in services, and gradually moving on to public
action. At present there are 45,405 SHGs under Kudumbasree catering to the
needs of about 10 lakh poor families. Total thrift collection is Rs. 38.7 crore
and thrift loan given through these SHGs amounts to 30.08 crore.
Kudumbasree gives great
importance to micro enterprises both individual and collective. There are

about 11,042 individual micro enterprises and 711 group micro enterprises
SELF HELP GROUPS
functioning under Kudumbasree. Bank loan utilized for these enterprises is

Rs.6.06 crore and the subsidy amount is Rs.5.71 crore. The role played by
Kudumbasree in poverty eradication in Kerala has been recognized awarded
various international agencies. 2.12. The Concept of Women's
Empowerment. The concept of empowerment of poor women is a relatively
new especially
in the realm of development. It is a process of changing the existing power

relations in favour of the poor and the marginalized women. It is a long-term
process thatrequires changes in knowledge, attitude and behaviour of not
only women, but also of men and the society at large. Empowerment of
women in general and poor women in particular, is the thrust area of
development initiatives in India today. Empowerment is a process of
awareness and capacity building leading to greater participation to greater
decision-making power and control, and to transformative action. The
concept of women's empowerment has become the catchword today. The
concept of women's empowerment appears to be the outcome of several
important critiques and debates generated by the women's movement
throughout the world, and particularly by Third World feminists. Its source
can be traced to the interaction between feminism and the concept of
"popular education" developed in
Latin America in the 1970s (Walters, 1991). The concept of the

empowerment of women as a goal of development projects and programmes
has been gaining wider acceptance in the 1990s. Women's participation in
grassroots organizations is increasingly recognized as crucial to their
empowerment and as a way for them to help shape development policies.
SELF HELP GROUPS
According to Khan (2001) and Sinha (2002) the Eighth Five Year Plan
(1992-97) makes a shift from 'development' to 'empowerment' of women.
Policies, programmes and projects
designed to assist and uplift the low-income women, have shifted from
"welfare approach" to an "empowerment approach". Hence, a number of
measures have been taken by the Government in this direction for social and
economic emancipation of women. According to Sahay, empowerment
occurs both at individual as well as collective levels. At individual level, a
new confidence and sense of self-efficacy emerges as the person redefines
him or herself as a more capable and worthy individual. Closely connected
to the psychological redefinition of self is the actual increase of individual
knowledge, competency, skills, resources, and opportunities, which enable
more effective action and interpersonal relations. There is a positive
interactive effect between the development of self-confidence and the
strengthening of personal ability. (Sahay, 1998) As per NABARD's estimate,
there are going to be several thousands of SHGs being linked with different
banks for their financing and several hundreds arewatching this development
with great interest and enthusiasm. Micro finance is now widely accepted
world over as an effective tool for socio economic empowerment of the
poor. The micro finance movement in Kerala is getting entrenched well with
the initiatives taken by the National Bank, Government of Kerala (through
Kudumbasree Programme) and with the participation of NGOs, bankers and
development agencies. Thus it is found that the SHG system is going to
become a movement inKerala. Taking this into consideration, the present
study would be of great importance to both for NGOs and for Kudumbasree

SELF HELP GROUPS
to evaluate the performance of SHGs under different NGOs in Kerala as

well as under the Kudumbasree. The present study is a comparative study of
the SHGs of NGOs and of Kudumbasree and also to assess the level of
empowerment achieved by these groups in social and economic spheres.
CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION
The analysis and interpretation is made in order to find whether the self
groups effect the individual’s financial position. In order to conduct the
study a questionnaire was prepared to the individuals responds towards the
groups, the questionnaire were prepared only which are required for the
study and it was prepared with satisfying individual’s personal feelings.The
questionnaire is prepared after making a survey with the customers who
have deposits. The study is basically a qualitative study were the questions
were prepared to know only whether the different deposits will satisfy of an
individual or not. The analysis and interpretation is done for each and every
question in order to know what the impact of deposits on individuals is and
also to know whether the individuals are really interested to the deposits
SELF HELP GROUPS
Table= 4.1
Income level of the Respondents. (per month)
Income level no of respondents percentage
Below 5000 9 18%
5000 to 10000 22 44%
10000 to 15000 15 30%
15000 to above 4 8%
total 50 100%
SELF HELP GROUPS
Source: field survey
Analysis:
It was found that the 44% of the respondents belongs to the income level of
10000 per month followed by the 30 % of the respondents belong to the
income level of 10000 to 15000 per month, 18% of the respondents belong
to the income level below 5000 per month and 8 % of the respondents
belong to the income level of 15000 and above.
INTERPRETATION
It was observe that the majority of the account holders belong to income
group is rs 5000 to 10000 these people give more preference to open account
SELF HELP GROUPS
Table= 4.2
Age profile of the respondents
Age No respondents percentage

21-30 22 44%
31-40 12 24%
41-50 12 24%
51and Above 4 8%
total 50 100%

SELF HELP GROUPS
Analysis:
It was found that the 44 % of the respondents belong to the age group
of 21 -30 year’s followed by the 24 % of the respondents belong to the age
group of 31-40 year’s, 24 % of the respondents belong to the age group of
41-50 years and 8 % of the respondents of the belong to the age group of
above 51 years.
INTERPRETATION:
It was observe that the majority of the respondents belong to the age group
of 21-30 years, these people are given more preference to take two –
wheelers loan in Muthoot Fin corp.

SELF HELP GROUPS
Table = 4.3
Respondent’s educational profile
Qualification No of respondents percentage

7th 5 10%
sslc 11 22%
puc 26 32%
uneducated 8 16%
total 50 100%

SELF HELP GROUPS
Analysis:
It was found that the 52 % of the respondents uneducated followed by 16 %

of the respondent’s sslc 22 % of the respondents and puc 32 % of the
respondents 7th and 10 % of the respondents.
INTERPRETATION:
It was observed that the majority of the respondents uneducated , these

people give more preference to open the account.

SELF HELP GROUPS
Table = 4.4
Respondents opinion about service provided by the Muthoot Fin corp.
opinion no of respondents percentage

good 15 30%
adequate 13 26%
satisfactory 22 44%
poor 0 0%
total 50 100%
Source: field survey:-

SELF HELP GROUPS
Analysis:
It was found that the 60 % of the respondents says that the Muthoot Fin
corp service charge is moderate followed by the 28 % of the respondents
says that service charge is low and the 12 % of the respondents opinioned
the service charges is high.
INTERPRETATION
it was observed the respondents opinioned service charge the Muthoot Fin
corp is to be moderate
Table: 4.5

SELF HELP GROUPS
Reasons for loan taking in Muthoot Fin corp.
Reasons no of respondents percentage

Quick sanction 26 52%
low paper risk 13 26%
low interest rate 11 22%
total 50 100%

SELF HELP GROUPS
Analysis:
It was found that the 52 % of the respondents taking loan in Muthoot Fin
corp for the reason of quick sanction of loan followed by the 26 % of the
respondents taking loan for the reasons of lower paper risk and 22 % of the
respondents taking loan for the reasons for lower interest rate.
INTERPRETATION
It was observed that the majority of the respondents taking loan for
the purpose of quick sanction of loan compare to other bank.
CHAPTER –V
FINDINGS, SUGGESTION AND CONCLUSION
5.1 FINDINGS:
The study was conducted to know the self help groups Muthoot Fin corp
loans and advances in Sindhanur city. The majority of the surveys are,
1. The demographic nature of the study conducted in the perception of

the respondents towards loans and advances in Muthoot Fin corp it
was observed that the 44 % of the respondents fall under the age
SELF HELP GROUPS
group of 21-30 year’s this age group people are given more preference
to take loan in Muthoot Fin corp.
2. It was observed that 16 % of the respondents uneducated. The

uneducated people give more preference to take loan in Muthoot Fin
corp compared to 7th ,sslc, puc,
3. 44 % of the respondents in the income group of rs 5000-10000 per

month. This income group people give more preference to open
account in Muthoot Fin corp.
4. The majority of the respondents aware of the new scheme of loan in

Muthoot Fin corp.
5. 52 % of the respondents taking loan for the benefit of low interest rate
6. 38 % of the respondents taking loan in Muthoot Fin corp for the

reason of quick sanctioning of loan.
7. The 44 % of the respondents gives the opinions of services are

Satisfactory.
8. 60 % of the respondents give opinion about the service charge is

moderate.

SELF HELP GROUPS
5.2 SUGGESTIONS:-
1. Banks should conduct Comparison of performance and satisfaction of

members of women SHGs with men SHGs can be undertaken.
2. Micro credit facilities extended by public sector banks through the SHGs.
3. Banks should conduct Comparative study of the performance of the SHGs

on the basis of different models of the SHG.
4. Sample SHGs are purely depending upon the NGOs in financial decision
making process. In the inception period, the NGOs are forming and giving
necessary training to the SHGs.
5. Banks should create the awareness about SHG schemes, operations and
working of SHGs among villagers and illiterates.

SELF HELP GROUPS
5.3 CONCLUSION:
The above findings and suggestion’s clearing that the bank employees
are good in their work. the bank was concentrating equal towards all the
self help group’s of loans and advances are charge in the satisfaction
from one person to another person is change. According to the study it
shows that majority of the existing customer are satisfied with loans and
advances of the product of the muthoot Fincorp and entire customer are
continued chain of membership in area where through transaction of the
government policy is to reducing the rate of interest management of the
funds will be the prime task.

SELF HELP GROUPS
BIBILOGRAPHY
1. BOOKS:
SL.NO Name of the Books Name of the Author

1 Marketing management Philphs kotler
2 Consumer behavior and Prabhat K.Pankaj. (published by

consumption patterns Deep and Deep publication
,New Delhi)
3
Organization Behavior
Halasagi (published by
siddalingeswara prakashan)
4
Banking theory and Practice B.S. Raman
(United publishers Mangalore.)

SELF HELP GROUPS
Websites:
1. www.muthootfincorp.in
2. www.google.com
ANNEXURIE
QUESTIONNARIE
Dear Sir/Madam
I the students of Government degree and PG College, Sindhanur

pursuing M.COM 1V Semester doing a project work entitled “self help
group’s muthoot pincorp Bank sindhanur”. Request you to spend your
valuable time to answer all these questions, which will help for our
assigned task. All information given by you will be treated confidential
and will be used only for academic purpose. Your response could be
helpful in making this research a success.
Name: ________________________
Age: _____
Sex: Male Female

SELF HELP GROUPS
Designation: __________________________________________
Address: _____________________________________________
_____________________________________________
_____________________________________________
Phone: ___________________ Mobile: ________________
Email id: _____________________________________________
1. Name of the customer: ________________
2. Age:
A. lesser then 18 [ ] B.18 to 25 years [ ]
C.25 to 35 years [ ] D. 35 years above [ ]
2. Sex:
A. Male [ ] B. Female [ ]
3. Material status:
A. Married [ ] B. Unmarried [ ]
4. Education:
A. below S.S.L.C [ ] B. S.S.L.C [ ]
C. Degree [ ] D. Uneducated [ ]

SELF HELP GROUPS
5. Customer profile:
A. student [ ] B.
Employee [ ]
C.Business man [ ] D.
Agriculture [ ]
6. Why you opened account in self help group’s :
A. for more facility [ ] B. To available

loan [ ]
C. Other specifies [ ] D.To get easy

loan [ ]
7. Whether the procedure is easy to open an account:
A. Yes [ ] B. No
[ ]
8. Your account assoisiated with the services like:
A. Cheque book [ ] B. Atm card [

]
9. You are customer in muthoot pincorp bank since:

SELF HELP GROUPS
A. Days [ ] B. Months [ ]
C. Years [ ]
10. Income per month (in rs)
A. Below 10000 { } B.10000-50000 { }
C. 15000-20000 { } D. 20000-25000 { }
11. Which purpose opens the account in the muthoot pincorp bank ?
A. Loan { } B. saving { }
C. Cheque book { } D. safety { }
12. Which deposit interest rate should be more satisfied in the

muthoot pincorp bank ?
A. S.B account { } B. Current account { }
C. R.D { }
13. Whether there is a suitable interest’s rate to customers:
A. Yes [ ] B. No [ ]
14. What is the bank feedback on documentation process :
A. Very satisfied [ ] B. Satisfied [ ]

SELF HELP GROUPS
15. Whether the customers are satisfied by interest rates charged by

bank :
A. Yes [ ] B. No [ ]
16. Service provided by muthoot fincorp bank when compare with

other intuitions or banks ?
A. Good [ ] B. Adequate [ ]
C. Satisfactory [ ] D. Poor [ ]
17. What is the opinion about the service charges?
A. High [ ] B. Moderates [ ]
C. Low [ ]
18. What are the advantages of open the account in muthoot fincorp
bank ?
A. High interest rate { } B. Liquidity { }
C. If any other specify { }
19. Why do prefer this bank compared to other banks?
A. ________________________
B. ________________________
20. Please give me your suggestions for improvement of working

/servicing of muthoot fin corp bank ?

SELF HELP GROUPS
A. ________________________
B. ________________________

Self Help Group's Muthoot Pincorp Bank Sindhanur

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Microfinance, Women Empowerment and Self-Help Groups:

Microfinance is the extension of small loans to entrepreneurs,

proven to be effective and popular measure in the ongoing struggle against

Microfinance has several other developmental objectives like mobilisation

The provision of adequate doses of microfinance in time to the women folk

GOVERNMENT COLLEGE-SINDHANUR Page 2

1.2 STATEMENT OF THE PROBLEM:

GOVERNMENT COLLEGE-SINDHANUR Page 3

The comprehensive statement of problem can be thus started as “SELF

1.3 OBJECTIVES OF THE STUDY:

1. To study the need and importance of micro-credit of economically

2. To study the role & importance of microfinance institutions in offering

3. To study the functions and services offered by micro-financial institutions

4. To study the role of Government in promotion of micro finance

5. To know the opinion of beneficiaries of self help groups.

6. To study rules, regulation and working of self help groups

1.4 SCOPE AND IMPORTANCE OF THE STUDY:

GOVERNMENT COLLEGE-SINDHANUR Page 4

1.5 RESEARCH METHODOLOGY:

 Sources of Data Collection.

GOVERNMENT COLLEGE-SINDHANUR Page 5

The primary data is collected through has collected through

GOVERNMENT COLLEGE-SINDHANUR Page 6

SHGs from the Sindhanur municipal corporation 150 members of SHGs

2. Annual reports of Muthoot Fin corp.

1.6 LIMITATION’S OF THE STUDY:

1.7 OVER VIEW OF THE CHAPTERS:

THIS STUDY IS DIVIDED INTO FIVE CHAPTERS.

Chapter I: - Research design

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Chapter II: -Industrial Profile & Company profile

Chapter III:- Theoretical back ground of the study

Chapter IV: - Analysis & Interpretation

Chapter V: - Findings & suggestions

This chapter includes findings & suggestions and conclusion of study.

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provides personal and business loans secured by gold jewellery, or Gold

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“To build leading customer-centric businesses enabled by technology,

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THEORETICAL BACKGROUND OF THE STUDY

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3.2 HISTORY OF SHG:

Evolution of SHGs in India

Similar experiments were initiated by other prominent NGOs like

Grameen Bank (GB) has reversed conventional banking practice by

(B) AFTER INDEPENDENCE:

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Since 1947 ‘Mysore Resettlement and Development Agency’ (MYRADA)

4] Membership should be limited to15-20 persons. Aim of the CMG is to

(C ) SIZE OF THE SHG:

The ideal size of an SHG is 10 to 20 members (Advantage: In a bigger group

The group need not be registered.

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 To establish a society, which has no exploitation, is self-reliant and

Self help group’s is committed to achieve the following.

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 Social and economic empowerment of target group (Women,

 Active participation of target group through decentralization and good

 Promotion of organizational activities by networking / coordination

(H) SAVINGS AND LOAN REGISTER