Pattern of Asset Holding, Income, Expenditure, Savings, Indebtedness and Rotating of Savings through Micro Credit in SHG Member Families in Ramanathapuram and Thoothukudi Districts of Tamil Nadu

Abstract

Self Help Groups (SHGs) are the predominant micro credit / micro finance model in India. It has been clearly established that SHGs act as an instrument for poverty alleviation. SHG formation is one of the many intervention strategies for income and employment generation, enhanced savings and capacity building. This research paper analyzes the extent of assets and net worth among various age categories of SHGs and it is revealed that the value of both movable and immovable assets has substantially increased for people after joining the self help groups. The study also concludes that income of the SHG member’s family increased substantially with longer periods of association of the member with the SHG. Similarly there has been significant increase in total family expenditure among members of all age categories of SHGs. In respect of savings of members, with longer periods of association of a member with the SHG, propensity to save increased substantially. It is also revealed that senior SHG members borrowed move than late entrants and invested the credit in their income generation activities. Money lenders have been wiped out of the community’s credit market as only less than two per cent of the credit requirements came from them during the post-SHG periods. The SHGs, by rotating their savings among members as micro credit, functioned as a village level bank by itself.