Nationalized Commercial Banks' Microfinance In The Development Of Self-Help Groups In Tamilnadu

Abstract

SHG schemes and programmes linked with banks is very effective and efficient in
improving the standard of living of the members and allowing them to participate in
social activities. Microfinance covers both financial and non financial services
benefitting their clients to upgrade the skill up gradation, entrepreneurship
development rendered to the poor and needy people for the purpose of enabling them
to overcome poverty. The SHGs considered for the research study is linked with
nationalized banks in the state constitute the population. 21 Nationalized banks spread
over in 32 districts having 21,454 registered self help groups in Tamilnadu. The list of
registered self help groups were referred and sample size was derived using statistical
formula. The pilot study was undertaken to find the reliability and viability of the study
using 100 samples of SHGs Members, 10 districts has been chosen for the sample from
the statistical data available with the nationalized banks. The concept of Self help
groups is said to be the “Brain Child” of Grameen Bank concept. The credit of spreading
the concepts of Self help groups among the people in India goes to NGOs and NGDOs.