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Opinion, Reasons and Benefits of Joining Self Help Groups in Tribal Sub Plan
Region of Rajasthan-An Evaluative Study

Article in International Journal of Current Microbiology and Applied Sciences · October 2020
DOI: 10.20546/ijcmas.2020.910.398

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Satyveer Singh Meena

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International Journal of Current Microbiology and Applied Sciences

ISSN: 2319-7706 Volume 9 Number 10 (2020)
Journal homepage: [Link]

Original Research Article [Link]

Opinion, Reasons and Benefits of Joining Self Help Groups in Tribal Sub
Plan Region of Rajasthan-An Evaluative Study

Satyveer Singh Meena*

Institute of Agri Business Management, Swami Keshwanand Rajasthan Agricultural

University, Bikaner. Rajasthan, India

*Corresponding author

ABSTRACT

This paper explained about the benefits of joining SHGs by the members, factors
Keywords responsible for success of the SHG, members need fulfilled internal loan facility, purposes
SHGs, Benefits, of loans, repayment of loan and opinion about the performance of the SHG. Majority of
Members, Support, members and villages were benefited by joining of SHGs. Specifically they were benefited
Activities, Opinions from the various schemes and support activities of their SHG and support organizations.
and Reasons SHGs have provided better support to their families, easy availability of loans and increase
in the savings for future. SHG also give support to establish business to support of their
Article Info livelihood. The review of existing studied suggests that members can benefit in different
aspects by joining of SHGs. As majority of villages have reported benefited from SHGs
Accepted: activities so more awareness should be carried out for SHG creation. SHG has been
xx September 2020 instrumental in creating easy credit availability for the members for their family support so
Available Online: wide spread of this concept is required in TSP region. SHGs are highly beneficial for
xx October 2020
eradication of poverty from the TSP region of Rajasthan.

Introduction India from the inception of planning periods

and NITI Ayog. Poverty has global presence
Poverty means those people who have and varied genesis and dimensions. It does
nothing, whose lives are in constant hazard not mean only human or income poverty but
due to the shortage of all basic resources that it also covers deprivation of human dignity
are required for their survival. In broad- caused by vulnerability to social and cultural
spectrum, excessive poverty means extreme shocks. Development Economics, till 1970s
deprivation i.e. deprivation of all basic was considered that the “Trickle Down
amenities of life. It is seen that along with the Effect” of growth oriented GNP will help to
urbanization and modernization people met eradicate poverty gradually (Mansuri, 2010).
with different forms of poverty and every
definition related to poverty also changes with In recent years improving the situation of
the inclusion of new dimensions. Eradication women and rural household through literacy,
of poverty is the main purpose of planning in skill development and enhancing income

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generating capacity by way of more gainful needs and wants, setting terms and conditions
employment on one hand coupled with the and maintaining the books of accounts. This
‘empowerment’, through right to use to regularly develops financial control in all of
information, economic autonomy resulting them. They are also trained to handle
from revenue generating activities and resources of an extent that is far beyond their
combined action on the other hand have individual capabilities. The SHG members
become focal point of strategies for women commence to appreciate that resources are
and rural households’ growth. Today Self- limited and have a cost. Once the grouping
help groups (SHGs) play a major role in shows this grown-up financial behaviour,
poverty alleviation in rural India. An banks are encouraged to build loans to the
increasing number of deprived people in a SHG in certain multiples of the accumulated
series of parts of India are members of SHGs savings of the SHG. Self help groups are
and are keenly engaged in savings and credit, compulsory to defeat mistreatment, develop
as well as in other activities eg. Income self-confidence for the financial self-reliance
generation, natural resources management, of rural community, mainly among women
literacy, child concern and nutrition, etc. The who are frequently indistinguishable in the
SHG system has proven to be very social structure.
appropriate and helpful in offering women the
possibility to break away gradually from Formation of Self Help Groups
exploitation and isolation. Nearly all main
donor agencies support SHGs in India in one There are three stages in SHG evolution.
mode or another and a lot of success stories
are available, unfolding how membership in a Group formation
SHG changed the life of a particular human Capital formation through revolving fund and
being or group for the improvement. Lots of skill development
NGOs are encouraging the SHG instrument Income generating activities
and linking it to a variety of other
development interferences. Whereas there is Scenario of Self Help Groups
sufficient evidence that the SHG approach is a
very successful, efficient and related tool for It is informative to contrast the SHGs with
organizing and empowering the poor, do arise other small groups set up under the ‘Grameen
with design, growth and introduction of model’ based on solidarity groups or JLGs (as
programmes to encourage Income-Generating it emerged in Bangladesh and spread
Activities (IGAs) that will generate adequate, throughout the world) where groups of
sustainable and regular income (Saravanan, women are in the same way brought mutually
2016). to access loans and other financial services.

A SHG is a group of about 10 to 20 people India has adopted the Bangladesh’s model in
from a uniform class, who come jointly for a modified shape. To alleviate the poverty and
addressing their frequent troubles. They are to make powerful the women, the micro-
promoted to create voluntary thrift on a finance is emerging as a powerful mechanism
continuous basis. They used the pooled in the new economy. With accessibility of
resource to create tiny interest bearing loans micro-finance, self-help groups (SHGs) and
to its members. The process helps them credit management groups have also started in
absorb the fundamentals of financial India. So the SHG movement has spread out
intermediation, including prioritization of in India.

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In the study of Sukhbir (2007) NABARD has region like, NGOs, ICDS through DWCD,
been playing the responsibility of propagator NRLM (earlier SGSY) through RGAVP,
and catalyst by providing favorable course of NGOS and by others, DPIP, NABARD-SHG-
action in surroundings, training and capacity BLP through NGOs and some others are
building besides extending financial promoted by watershed development, literacy
assistance for the strong growth of the SHG mission, RCDF, forest, watershed
linkage programme over the years. development, literacy mission, RCDF, forest
through NGOs and cooperatives. The major
Total number of functioning SHGs in players in Promotion are ICDS, Tribal Area
Rajasthan was 264119, out of which 98107 Development department, NRLM and NGOs.
SHGs financed by banks as on 31 March, (Joshi, Singh and kumar, 2010)
2016. Loan distributed by public sector banks
under SHG-Bank linkage programme in As per CMR 2007 report estimated SHGs in
Rajasthan was ` 4832.96 lakhs in 2016-17. tribal region of Rajasthan are as follows:

SHG in Tribal Sub Plan Region As mentioned in above table the total number
of SHGs, the highest numbers of SHGs were
Tribal communities enjoy traditional in Udaipur district, followed by Banswara,
leadership. However, the SHG movement is Chittorgarh, Dungarpur and Rajsamand
still very weak in the Tribal areas. There are district. The highest number of SHGs was
many reasons for this. There is demand for promoted through ICDS/DWCD in Rajasthan
credit across the households and districts, as well as in TSP region.
which was met by moneylenders, relatives
and friends. There is a space for micro finance Review of Literature
institutions like SHGs and MFIs
Brody et al (2015) ESHG have positive
Not many households have interface with effects on women's economic and political
micro-finance institutions like SHGs. empowerment, as well as social
Wherever, SHGs are found, most are defunct empowerment ‐ such as, women's family size
too, especially created by government decision‐making power and social mobility.
departments. These ICDS/ DRDA group was There is no quantitative evidence to indicate
of very poor quality. These groups are poorly positive effects on women's psychological
formed. empowerment. However, the qualitative
studies suggest that women participating in
Interest rates are high for moneylender’s loan. ESHG perceive themselves as
MFI interest rates are also not low. Here there psychologically empowered. ESHG with a
are two issues- one using micro-finance for training component, such as financial and
poverty alleviation and second considering business education or life skills training, have
micro-finance as a business. Today it is a larger effect than programs that do not
mainly the later than the former. Poverty involve training. Important mechanisms
cannot be eradicated with 24 percent rate of which facilitate empowerment are gaining
interest even if collateral is not taken. In the financial skills (economic empowerment);
SHG movement savings are the collaterals. gaining the capability to speak in front of
others, access to household decision‐making
There are many organizations which is (psychological empowerment); improved
working for promotion of SHGs in TSP networks and the experience of mutual

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support from and solidarity with fellow group women’s self-help groups at the formation
members (social empowerment); and access stage and variations in members’ skills and
to wider social participation combined with expertise at the performing stage of the
an increased understanding of political groups. The members’ awareness on group
contexts and individual rights (political norms and trust in financial transactions, and
empowerment). Vinodhini and Vaijayanthi leadership styles together with cooperation
(2016) focused on the wages for women and cohesion among members, transparency
empowerment and reduction of poverty in financial transactions, group attendance,
through self-help group. They have and networking with the bank and the
contributed by developing their social and federation foster the effectiveness of women’s
economic status and empower women by self-help groups.
increasing their income, expenditure and
saving habits. The key reasons for the success Materials and Methods
of SHGS were its links with the poor people,
its innovative practices, its capacity to enable The present study includes descriptive
people’s participation building at different research approach used to test the hypotheses
levels between stakeholders. They have and present conclusions from data analysis.
developed self-confidence and independence The present study uses quantitative approach
among rural women, which in turn increased of problem solving.
the livelihood of the rural people. Naik and
Rodrigues (2017) concluded that Socio- Collection of Data
economic empowerment has been considered
significant for overall development. Women’s For achieving the objectives of the study and
empowerment is evidently necessary for to carry out the analysis, both primary as well
escalating socio-economic condition of the as secondary data were collected:
women in the society. The SHGs enabled
women to aware about their rights, Primary data source
entitlements, taking part in various
development programs and economic For the present research, primary data was
activities for their substantial development. collected through structured questionnaire by
Thus, SHGs made noteworthy impact on personal contact with SHG members.
women empowerment.
Secondary data source
Kumar et al., (2018) suggested that the group
heterogeneity directly predicts the For the current study, secondary data was
effectiveness of women’s self-help groups collected through books, periodicals, journals,
and it is fully transmitted through group web portals, research papers, and case–study,
structure and process to positively predict the articles, and newspapers. Online directories
effectiveness of the women’s self-help like EBSCO, indiastat and Google Scholar
groups. The group structure and process is websites were also very helpful.
found to be a full mediator between group
heterogeneity and group effectiveness. The Sampling Design
predictive accuracy of the model is found to
be high. The findings have implications to For this study, multistage stratified random
bring in more diversity in members castes, sampling and judgmental sampling were used.
education, and their reasons for joining

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Population: ICDS promoted SHGs were Villages Benefitted from the SHG
selected by researcher because as per
Rajasthan Micro Finance report March 2013- From the point of different village benefit of
14, out of ICDS, NRLM (earlier SGSY), joining SHG the respondent data were shown
NABARD-SHG-BLP, DPIP and others, the in figure-1.
highest number of SHGs were promoted in
Rajasthan by ICDS (2, 31,212). Figure 1 analysis concluded that majority of
village (95 percent) have been benefited from
Five districts come under Tribal Sub Plan SHG activities and only 5 percent villages
region viz. Udaipur, Dungarpur, Banswara, have not been benefited from joining of SHG.
Pratapgarh and Sirohi. Researcher selected So the impact of joining SHG is growing
one tehsil from each district on the basis of rapidly in the region.
random sampling (lottery method).
Ways by which SHG benefited the village
For primary data collection, judgmental
sampling was used to select the SHGs which The respondents were asked about the ways
were established at least four years ago. Later by which SHG benefited the village. The data
the sample SHGs were selected on the basis so obtained about the ways by which SHG
of simple random sampling (lottery method). benefited the villages are shown in figure 2.
Six SHGs were selected randomly from every
tehsil, 10 members were selected randomly Figure 2 revealed the fact that majority of
from each SHG. SHG members are benefited by the easy
credit availability (53 percent) from SHG
Sample Size: Due to the constraint of data followed by women empowerment (26
availability of SHGs; cost and time limitation percent), mutual cooperation among members
of the present study, 300 SHG members of the group (20 percent) and awareness
selected for the survey. creation (1 percent). So on the basis of above
statistics members want more focus on easy
Research area: The study was conducted in credit availability form SHG.
Tribal Sub Plan (TSP) region of Rajasthan
which includes Udaipur, Dungarpur, Factors responsible for the success of SHGs
Banswara, Pratapgarh, Sirohi districts of
Rajasthan. Respondents have been asked about the
factors responsible for success of SHGs. The
Selection of tehsils: One tehsil from every responses generated are summarized in
district was selected randomly. 5 SHGs factors’ rank in table 4.
selected from each tehsil and members are
selected randomly from each tehsil. Table 4 shows that majority of SHG members
believe that efficient leadership and support
Data Analysis from promotion agencies are the most
important factors responsible for the success
In this section researcher explained about the of SHG. Other important factors contributing
benefits of joining SHG on their village, the achievements of SHG include active
factors responsible for success of the SHG, support of SHG member, regular saving habit
members need fulfilled internal loan facility of members, proper maintenance of accounts
and purposes of loans etc. and regular SHG meeting.

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Table.1 Details about the SHG promoting agencies in Rajasthan

Agency Scheme/ Project Remarks

DWCD No specific scheme Groups are organised by Anganwadi
workers and Sathins
Department of NRLM (earlier SGSY), Groups comprising of mostly BPL
Rural Watershed Development households- inclusive of co-opted from
Development Programmes, DPIP (now RRLP) NGOs following the norms of
MPOWER “Panchasutra”
NABARD and SHG-Bank Linkage Programme Through NGOs, RRBs and
Banks Cooperatives.
Cooperatives The cooperatives have very recently
started forming SHGs
Civil Society With support from Donor Groups promoted by NGOs under
Oraganisations agencies (such as Sakh Se Vikas Govt. sponsored programmes are
of SRTT) and Govt. programmes often reported by both
Others Forest Department,
Department of Industries
(under cluster development
programme)
Source: [Link] by Bhargava, 2011

Table.2 SHGs in tribal region of Rajasthan

Districts ICDS/DWCD SGSY DPIP Others Total

Banswara 5375 2875 - 500 8750
Rajasamand 2500 1000 3250 - 6750
Chittorgarh 6625 1250 - 375 8250
Udaipur 5625 2750 - 1750 10125
Dungarpur 3125 3625 - 1250 8000
Source: Estimated from CMR, 2008, Status of Micro Finance in Rajasthan

Table.3 List of selected tehsils with number of members

Strata [District (Tehsil)] Sample size (Members)

Banswara (Ghatol) 60
Dungarpur (Dungarpur) 60
Pratapgarh(Pratapgarh) 60
Sirohi (Aburoad) 60
Udaipur (Salumbar) 60
Total 300
Source: Author’s compilation

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Table.4 Factors responsible for the success of SHGs

Factors responsible for the success of SHGs Rank Mean

Efficient leaders 1 2.72
Support of promotion agency 2 3.08
Active support of SHG member 3 3.38
Regular saving habit of members 4 3.40
Proper maintenance of accounts 5 3.96
Regular SHG meeting 6 4.43
Source: Author’s compilation

Table.5 Details of amount of loan taken by respondents

Loan Amount Frequency Percentage

up to 5000 33 11
>5000-10000 177 59
>10000-15000 51 17
>15000-20000 30 10
> 20000 9 3
Source: Primary Data

Table.6 Purpose of loan

Purpose of loan Frequency Percentage

Productive purpose 69 23
Starting new venture 42 14
Health purpose 0 0
Education 0 0
Children Marriage 21 7
Agriculture purpose 24 8
Other 144 48
Source: Primary Data

Fig.1 Villages benefitted from the SHG

Source: Author’s compilation

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Fig.2 Ways by which SHG benefited the village

Source: Author’s compilation

Fig.3 Members’ needs fulfilled by SHGs

Source: Primary Data

Fig.4 Reasons for joining SHG

Source: Primary Data

Fig.5 Internal loan for SHG members

Source: Primary Data

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Fig.6 Repayment of loan amount

Source: Primary Data

Fig.7 Opinion about the Performance of SHG

Source: Primary Data

Members needs fulfilled by the SHGs in the savings for future (22 percent). SHG
also give support to establish business to
In questionnaire respondent were asked about support of their livelihood.
their needs fulfilled by the SHGs. The
members’ responses presented in Figure 3. Loan benefits to respondents

Figure 3 revealed the fact that SHG members In this section respondents were asked about
strongly believed that they are benefited from the internal loan for members from SHG,
the various schemes and support activities of details of loan, purpose of loan, repayment of
their SHG and support organizations. loan amount and performance of SHG.

Main reasons for joining SHG SHG provide internal loan for Members

The questionnaire included a question asking The respondents were asked about internal
the main reason for joining SHG. The loan facility to them from SHG. The data so
responses are summarized in figure 4. obtained about internal loan for members are
shown in figure 5.
Figure 4 concluded that majority of SHG
members (45 percent) join the SHG to Figure 5 show that majority of SHG members
provide better support to their families, easy believe that their SHG provide internal loan
availability of loans (30 percent) and increase facilities for their members.

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Details of amount of loan taken by scale has been used here. Responses are
respondents presented in Figure 7.

The amounts of loan were classified in five From the figure 7, it can be concluded that
categories. The responses are summarized in majority of SHG members rate ‘good’ about
the table 5. the performance of their SHG (68 percent). 26
percent of respondent even rank ‘excellent’ to
Table 5 concluded that majority of SHG their SHGs. However, still there are 4 to 5
members taken a loan amount of 5-10 percent of members those are not satisfied
thousand rupees. However, 17 percent of with the performance and function of SHG.
members agreed to avail the loan facility for
10 -15 thousand rupees, 10 percent of In conclusion the based on the major findings
members agreed to avail the loan facility for of the research, the following conclusion has
15-20 thousand rupees and 3 percent of been drawn from member’s perspective:
members agreed to avail the loan facility Majority of the Self Help Group member
more than 20 thousand rupees. interviewed indicated that, they have
benefited from the being part of Self Help
Purpose of loan Group. Notable among the benefits are
easiness in accessing credit, empowerment of
Respondents were asked about the purpose of members and increase mutual cooperation.
loan. The responses are presented in table 6. Based on this, majority of the Self Help
Group members ranked the performance of
Table 6 revealed the fact that the most their groups as good especially efficient
popular reason for applying for the loan is for leadership and support of promoting agency.
productive purpose followed by starting new Study revealed that member’s needs were
business, agriculture purposes, and children fulfilled by their SHGs and internally they
marriage. 48 percent members take loan for were getting loan for productive purposes and
other purposes. for starting new venture specially. The
important reason for joining SHG was to
Timely repayment of loan amount support to their family.

To have an idea about the respondents’ References

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How to cite this article:

Satyveer Singh Meena 2020. Opinion, Reasons and Benefits of Joining Self Help Groups in
Tribal Sub Plan Region of Rajasthan-An Evaluative Study. [Link].
9(10): xx-xx. doi: [Link]

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