Micro Finance and Women Empowerment in Dharwad and Hubli A Study Dr.A.S.Shiralashetti, Faculty, P.G.

Dept of Commerce, Dept of Commerce, Karnatak University, Dharwad-03. Mr. Fazalath Hussain.R Faculty, Sana college of Information Science and Management & Commerce, Hubli-580025.

Abstract The present study entitled Micro Finance and Women Empowerment in DharwadHubli- A Study is carried to find out the women empowerment (challenges, achievement, innovations) prevailing in the Microfinance sector. It reveals that the microfinance being hijacked by other people who have been attracted by the credit. Moreover, micro finance is for the poor people to enable to raise their income level and improve living standards. The study is based on the primary data collected from 218 sample women entrepreneurs of twin city. The study recommends for making provision of sufficient finance at the time of need. INTRODUCTION In India, microfinance scheme is dominated by self help groups, bank linkage programme aimed at providing financial services to the undetected poor based on the philosophy of peer pressure and group securing as collateral substitute. The self help groups have been successful not only in meeting peculiar needs of the poor, but also in strengthening collective self help capacities of the poor at the local level leading to their empowerment. The SHGs are making significant contribution to women empowerment and empower the members in economic, social and political spheres. The micro-finance programmes are also expected to become increasingly self-reliant and independent of donor funds through self help groups. Micro-finance is carried out through self help groups where poor come together in the Indias micro-credit programmes are implemented through group structure which is known as Self Help Groups. In Karnataka, women self help groups are organised under Stree Shakti Programme. This programme was implemented in the year 2000-2001 with an objective to empower rural women and make them to self reliant. The SHGs are being organized by Government, NGOs and co-operative banks and women organisations. It is hoped that through such interventions uncovered groups are covered with credit and in

process get empowered. Women led SHGs in many parts of the country have achieved success in bringing women to the mainstream of decision making. The SHG is also a viable organize setup to disburse micro credit to the rural women and encouraging them to enter into entrepreneurial activities. And manage thrift appraise credit needs and enforce financial self-discipline. NATURE OF THE PROBLEM The womens question has to late attracted attention of social scientists who find plenty of area still unexplored. Sociologist in particular has undertaken the task of conducting systematic research to assess the changes that are taking place in the conditions of women all over the world. Especially in the developing countries, in both industrially advanced and less developed countries, women are burden with cumulative inequalities as a result of socio-cultural and economic discriminatory practices which, until recently, have been taken for granted as through they were part of the immutable scheme of things established by nature. It is seen that women have been denied equal opportunities all over the world for personal growth and social development. In India it is still worse because the sex segregated character of society. The condition of poverty and the traditional value system, gender discrimination is equally an economic issue having serious implications on sustainable development of societies. NEED FOR THE STUDY The Self Help Groups have been evolved as a mechanism for meeting the socioeconomic aspiration and credit need of poors. Involvement of SHGs with bank could help in overcoming the problem of high transaction cost in providing credit to the poor. The present study is carried to know the functions of SHGs and occurrence of improvement in SHG members. OBJECTIVES The present study is taken up with the following objectives: 1. To study the socio-economic conditions of women in the study area.

2. To examine the participation of women in self help groups.

3. To analyse the effectiveness of self help groups, in improving the socio-economic status of women.
4. To evaluate the role of SHGs in women empowerment in the study area

5. To identify the problems of SHGs Methodology: The present study is based on the primary data collected through the questionnaires from 218 sample women entrepreneurs from Dharwad Hubli city area. The collected data were analysed by using percentage and common size statement to examine the effect of SHGs on women. Selection of the study area: In the process of selecting the area, choice fell on twin city Hubli and Dharwad in north Karnataka. EMERGENCE OF MICRO-FINANCE MOVEMENT IN INDIA Two broad approaches characterize the microfinance sector in India-self help group (SHG) Bank linkage and microfinance institutions. The self-help-group bank linkage(SBL) is the larger model and is unique to India but the internationally more established microfinance institutions(MFI) model is the one that appears to be the increasingly favoured route. The SBL approach dates from the NABARD initiated pilot study of 500 SHGs in 1992. The NABARD has had a key role in initiating and nurturing Indias unique SBL programme. It was largely responsible for the RBI including linkage banking as a main stream activity of banks priority sector leading in 1996. The NABARD works with its partner NGOs ( myrada, pradan and dhan ) also led to the government according to national priority to the programme in the union budget of 1999. Beginning as a pilot in 1992, with 500 SHGs, by March 2006, over 22, 00,000 SHGs had been provided with bank loans. They covered over 3, 00,000 household and disbursed Rs 11,398 Crore to their

members ( NABARD-2006).In comparison, the loans outstanding of 162 MFIs in India were estimated to be around Rs 1600 Crore in march-2006 (NABARD). DEFINITION OF MICRO-FINANCE AND SELF HELP GROUP MICRO- FINANCE: Reserve Bank of India (RBI) has defined Micro finance as The provision of thrift, credit and other financial services and products of very small amounts to the poor in rural, semi-urban and urban areas for enabling them to raise their income levels and improving living standards. In broader terms the micro finance refers to entire range of financial services to the poor, skill up gradation and entrepreneurial development to overcome poverty. SELF-HELP GROUP: NABARD being the principle agent in rural development in India has defined the concept of SHGs As small economically homogeneous affinity groups of rural poor, voluntarily formed to save and mutually contribute to a common fund to be lent to its members as the group members decision. MICRO FINANCE MODELS UNDER SHG BANK LINKAGE All banks are participating in microfinance services. These bankers are further classified into following models. Model-1 The simplest and most direct model in which banks deal directly with individuals SHGs providing financial assistance for on lending to individual members. Model-2 Banks directly give financial assistance to SHG under supervision of NGOs or self help promoting institutions. Model-3 NGO act as financial intermediary between banks and SHG. The NGO accepts contractual responsibility for repayment to bank. Model-4 Bank gives loan directly to individual members of SHG upon recommendation of SHG and NGO assist bank in monitoring, supervising and recovery of loans. The RBI initiatives for microfinance at glance.

Table-1 Growth of SHGs in India (Rs in crore) Years 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Number of SHGs 255 620 2112 4757 8598 14314 32995 114775 263825 461478 717360 1079091 1618456 2238565 2580000 Bank loan 0.29 0.65 2.44 6.06 11.84 23.76 57.07 192.87 480.87 1026.30 2048.68 3904.20 6898.46 11397.55 14479.00 NABARD refinance 0.27 0.40 2.30 5.66 10.65 21.38 52.06 150.13 250.62 796.47 1418.80 2124.20 3092.01 4156.56 Nil

Source: various issues of progress of SHG- bank linkages in India, NABARD, Mumbai The above table reveals the number of groups bank loan and NABARD refinance from 1992-93 to 2006-07. The formation of SHGs started in 1992-93, in the first year only 255 groups, but it is growing very fast, as per data there are 2580000 groups in 2006-07. In recent years SHGs are very popular, growing rate is very fast, that is 5 to 6 lakhs groups have been forming per year in our country.

Almost all groups have the bank linkages, and have been taken loans from banks. It is also increasing according to groups. Bank loan is 0.29 crores in 1992-93, it is increased to Rs. 14,479 corers in 2006-07. And refinanced by the NABARD is Rs. 0.27 crores in 1992-93 and Rs. 4156.56 crores in 2005-06 likewise number of groups, loan from banks and refinance by the NABARD are increasing year by year. It includes the importance of the SHGs. Table: 2 Caste of SHG- members Source : Field survey Caste Number of respondent Hubli SC/ST 19 (51.35) (18.10) Hindus 68 (48.23) (64.76) Muslims 12 (46.15) (11.43) Christians 06 (42.86) (05.71) Total 105 (48.16) (100) Dharwad 18 (48.65) (15.93) 73 (51.77) (64.60) 14 (53.85) (12.39) 08 (57.14) (07.08) 113 (51.84) (100) Total 37 (100) (16.97) 141 (100) (64.68) 26 (100) (11.93) 14 (100) (06.42) 218 (100) (100)

Figure in parenthesis right and below to the figures indicate percentages to respective row and column totals. It is revealed from the table 2 that caste composition of SHGs members in Hubli Dharwad cities, out of total sample respondents 64.68 per cent belongs to hindus, 16.97 per cent belongs to SC/ST where as 11.93 per cent and 6.42 percentage of respondents falling in the category of muslims and Christians. The major portion of hindus are very much interested in joining hands through SHGs which includes Brahmins, lingayats, Marathas, etc and comparing to the hubli city, the muslims and Christians involvement in SHGs are comparatively higher in Dharwad..

Table 3: House ownership of SHGs members. Type of house Own Hubli Before 38 % 36.19 After 69 % 65.71 Before 36 Dharwad % 31.86 After 65 % 57.52

Rented Leased Government provided total

60 07 105

57.14 06.67 100

33 01 02 105

31.43 00.95 01.91 100

71 06 113

62.83 05.31 100

45 03 113

39.82 02.66 100

Source : Field survey Figure in parenthesis right and below to the figures indicate percentages to respective row and column totals. The table 3 throws light on the type of ownership of house of sample respondents before and after joining the SHGs. The above table reveals that in Hubli city 65.71 per cent of respondents have their own houses, while 31.43 per cent are in rented house and 0.95 per cent is living in leased house whereas only 1.91 per cent of sample reported they are living in government provided house. But before joining the SHGs, the position was 36.19 per cent, 57.14 per cent and 6.67 per cent; and there is no government support. Where as in Dharwad after joining SHGs it found 57.52 per cent are having their own house while, 39.82 per cent and 2.66 per cent of respondents are living in rented and leased houses. but the position of same respondents before joining SHGs were as 31.86 per cent, 62.83 per cent and 5.31 per cent respectively, and there were no SHG member took government sponsored house in Dharwad.

Table 4 Classification of respondents on the basis of Education.

Level of education Uneducated

Number of respondents Hubli 27 (54) (25.71) Dharwad 23 (46) (20.35) 21 (52.50) (18.58) 15 (54.46) (13.27) 34 (58.62) (30.10) 17 (58.62) (15.04) 03 (37.50) (2.66) 113 (51.84) (100)

Total

50 (100) (22.94) 40 (100) (18.35) 33 (100) (15.14) 58 (100) 26.61 29 (100) (13.30) 08 (100) (3.66) 218 (100) (100)

Upto IV

19 (47.50) (18.95)

V to VII

18 (54.54) (17.14)

VIII to X

24 (41.38) (22.86)

XI to XII

12 (41.38) (11.29)

Degree

05 (62.50) (4.05)

Total

105 (48.16) (100)

Source: Field survey Figure in parentheses right and below to the figures indicate percentages to respective row and column totals. The table 4 reveals that out of total sample respondents, 22.94 per cent are uneducated the 18.35 per cent are educated at the level of up to 4th and only 15.14 per cent are educated in between 5th to 7th standard while the major portion 26.6 per cent are falling in between 7th to 10th , 13.30 per cent are educated at the level of 11th and 12th , only 3.66 per cent of SHG respondents are graduate.

Table 5

Income details of SHG-Members Number of respondents Hubli Dharwad 06 (42.86) (5.71) 82 (50.31) (78.10) 12 (48.00) (11.43) 08 (57.14) (7.07) 81 (49.69) (71.68) 13 (52.00) (11.50) 09 (69.23) (7.96) 02 (66.67) (1.79) 113 (51.84) (100)

Income level Less than 500 501 to 1000 1001 to 1500

Total 14 (100) (6.42) 163 (100) (74.77) 25 (100) (11.47) 13 (100) (5.96) 03 (100) (1.38) 218(100) (100)

1501 to 2000 04 (30.77) (3.81) 2001 and above 01 (33.33) (0.95) Total 105 (48.16) (100)

Source: Field survey Figure in parentheses right and below to the figures indicate percentages to respective row and column totals. Table 5 reveals that out of total sample, 6.42 per cent of respondents are earning less than Rs.500, 74.77 per cent respondents are earning in between Rs.500 to 1000 and 11.47 per cent respondents are earning income at Rs.1501 to 2000 and only 1.38 per cent respondents are earning more Rs.2001. Table 6 reveals the possession of assets by various respondents. The respondents possessed assets like two- wheelers, gas stove, fans, tables/chair tape recorders, television, C.D player, cell phone, etc. It found that there has an improvement in possession of assets of both Hubli-Dharwar respondents after joining SHGs as compared to before joining. The standard of living has improved among women entrepreneurs as compared to before joining SHGs.

Table 6 Distribution of SHGs members on the basis of Acquisition of Assets Hubli Not Aft acquir er ed 0 98 2 11 Dharwad Not Aft acquir er ed 2 106 7 104 113 80 109 57 3 0 6 19 28 5 30 45

Assets Land Refrigerator Washing Machine 0 0 105 105 0 0 Two Wheeler 2 23 80 105 4 29 Three Wheeler 0 1 104 105 1 3 Saving Machine 5 31 69 105 8 48 Gas Stove 25 74 6 105 29 81 Fan 6 97 2 105 11 102 Table/Chair 28 67 10 105 31 76 Radio 32 0 73 105 51 43 Tape Recorder 17 64 24 105 12 73 Television 21 79 5 105 26 82 C.D Player 0 19 86 105 2 81 Cell Phone 3 41 61 105 6 62 Source; Field Survey Figure in parentheses right and below to the figures indicate percentages to respective row and column totals. Table 7 Loan of SHGs-members Number of respondents Hubli Dharwad 53 (48.62) (50.48) 5001 to 10,000 31 (45.59) (29.52) 10,001 to 20,000 20,000 and above 17 (60.71) (16.19) 04 (30.77) (3.81) 11 (39.29) (9.73) 09 (69.23) (7.97) 37 (54.41) (32.74) 56 (51.38) (49.56)

Befo re 7 2

Total freque ncy 105 105

Befo re 5 2

Total freque ncy 113 113 113 113 113 113 113 113 113 113 113 113 113 113

Loan amount Less than 5000

Total 109 (100) (50.00) 68 (100) (31.19) 28 (100) (12.85) 13 (100)

(5.96) 105 (48.16) 113 (51.84) 218 (100) (100) (100) (100) Figures in parenthesis right and below to the figures indicate percentages to respective row and column totals. The table 1.7 shows that the 50 percent respondents are borrowed less than the Rs. 5000 i.e Rs.500, Rs.1000, Rs 2000 and So on, 31.19 percent members are borrowed Rs 5001 to 10,000, only 12.85 percent and 5.96 percent members are borrowed the loan amount of Rs. 10,001 to 20,000 and more than Rs. 20,000. Table 8 Occupational distribution of SHG - Members
Type of activities Beauty parlour Milk business 09 (45.00) (8.57) Cloth business 08 (53.33) (7.62) Agarbatti making 06 (33.33) (5.71) Beedi rolling 08 (42.11) (7.62) Tailoring 19 (44.19) (18.10) Pickle making 23 (54.46) (21.90) Roti business 09 (40.91) (8.57) Factory worker Kirani shop 09 (60.00) (8.57) 05 (62.50) (4.77) 06 (40.00) (5.31) 03 (37.50) (2.68) 15 (100) (6.88) 08 (100) 13 (59.09) (11.50) 22 (100) (10.09) 19 (45.24) (16.81) 42 (100) (19.27) 24 (55.81) (21.24) 43 (100) (19.72) 11 (57.89) (9.73) 19 (100) (8.72) 12 (66.67) (10.62) 18 (100) (8.26) 07 (46.67) (6.19) 15 (100) (6.88) 11 (55.00) (9.73) 20 (100) (9.17) Hubli Number of respondents Dharwad 09 (56.25) (8.57) 07 (43.75) (6.19) Total 16 (100) (7.34)

Total

(3.67) Total 105 (48.16) (100) Source: Field survey. 113 (51.84) (100) 215 (100) (100)

Note: Figures in parenthesis right and below to the figures indicate percentages to respective row and column totals. Table 8 reveals that out of total sample in Hubli and Dharwad city, majority of respondents are involved in tailoring, pickle making, milk business, beedi rolling, and roti business. Out of total sample, 19.72 per cent and 19.27 per cent respondents occupation is tailoring and pickle making, where as 10.09 per cent and 9.17 per cent members occupation is roti business and milk business. Only 3.67 per cent respondents informed that they are opened small kirani shop and others like beedi rolling 8.72 per cent, beauty parlour 7.34 per cent, cloth business 6.88 per cent etc. The SHGs helps women to develop in the field economically as well as socially by generating employment.

Findings 1. Large members of SHGs are from weaker section of the society. 2. The majority of respondents have own house both in Hubli-Dharwad. 3. 77.06 per cent of the members are educated
4. 74.77 per cent are earning Rs 501 to 1000 per month. 11.47 per cent are earning Rs

1001 to 1500, while 5.96 per cent and 1.38 per cent of members income level is Rs1501 to 2000 and more than Rs 2000.
5. Ownership of assets has been increased after joining as compared to before joining

of SHGs.
6. 50 per cent of respondents borrowed loan amount less than Rs 5000.

Suggestions The following suggestions are offered

1. Education to SHG-Members
2. Training facilities to SHG member:

3. Easy access to loans

4. Voluntary organizations and womens co-operations:

5. Enhancement of loans: 6. Awareness of changing trends

Conclusion The present study has observed that involvement of the members in the group activities significantly contributed to boosting their self- confidence and improving their skills.In this study, an attempt is made on the role of micro- finance on socioeconomic status of women. The study suggested to strengthen the micro finance sector in the interest of nation building. Reference Puhazhendi V. and Satyasai K. I. S, (1998); Micro- finance of Rural People: An Impact Evaluation, NABARD, Mumbai. Rao and Padmaja,(1998); Self- help groups in Tirupati, Andhra pradesh, Journal of social welfare, April, Vol No.45, No.1, P. 25-27. Rajasekhar,(2000); Micro-finance programmes and womens empowerment: A study of Two NGOs from Kerala; Journal of Social and Economic Development , Vol 1.3, No.1, May-June, P. 76-94. Dr. Ramesh charan pandit,(2006); Women SHGs in Orissa: A crusade for women empowerment, SHGs and women empowerment by R.K. Shahoo and S.N. Tripathy, P.40-44. Ramesh Babu.E, Vidyasagar Reddy.G and Reddy C.R,(2010); Micro-finance: An Approach for Poverty Alleviation, Journal-Southern Economist, Vol.49, No.10, P. 23-28. Sanjay Sinha and Meenal Patole,(2003); Micro-finance and the Poverty of Financial Services: A perspective from Indian Experience, South Asia Economic Journal, Vol .4, No.2, July- December, Sage publication.

 Dr. R.M Patil,(2009); Micro-finance-The New Mantra in Rural Finance, Transformation in Indian Banking, P.263-268.
NABARD micro- finance for SHG Dept, Website: www.nabard.org

Women and Child Development Welfare, Dharwad (Government of Karnataka) as on 31-Feb-2011.