Abstract:

In-spite of increased economic growth in the last decade, about 29.8% of Indian population continues to live below poverty line. One of the ways to combat poverty is to provide credit to the impoverished people to engage in self employment projects that are income generating. Hence, the concept of Microfinance through Self-help Groups (SHGs) has emerged which was introduced in Meghalaya in 1992-93. The present study was undertaken to study the structure and performance of SHGs; to analyze the impact of SHGs on income from agri-enterprises; to assess the role of SHGs on women empowerment. Umsning block from Ri-Bhoi district and Khatarshnong - Laitkroh block from East Khasi Hills were selected randomly for the study. Five SHGs from each block and six SHG members from each SHG were selected randomly, thus a sample of 60 SHG members from 10 SHGs was selected. Both, primary and secondary data were collected from the SHGs and SHG members during the period of January-March, 2012. The average age of the sample SHGs was found to be 4.36 years and on an average a group was consisted of 10.40 members. About 70 per cent of the sample SHGs has reported that members have dropped out from the groups. In 80 per cent of the cases, the group meetings were held once in a month and only in 20 per cent of the cases they were held once in every 15 days. It was found that the SHGs saved 76 per cent of the total committed savings. The outreach of internal loan was cent per cent for the first loan and 74 per cent for the repeat loans. On an average the groups received an external loan amount to the tune of three times of the group savings. About 86.67 per cent of the members reported that the loan amount was sufficient. The overall repayment rate for internal loans was 84.98 per cent and in case of external loan it was 80.14 per cent. About 66.67 per cent of the sample SHG members reported an increase in their income level after joining the SHGs. The magnitude of external loan had positive and significant impact on return from micro-enterprises. Participation in SHGs exerted positive impact on the empowerment of women in both Ri-Bhoi and East Khasi Hills districts of Meghalaya. It can be concluded that the SHGs have positive influence on the lives of SHG members in rural Meghalaya.