A

PROJECT REPORT

ON STUDY OF MICROFINANCE (SELF-HELP

GROUPS)

SUBMITTED IN PARTIAL FULFILLMENT

FOR THE DEGREE OF BACHELOR IN BUSINESS MANAGEMENT

(BUSINESS STUDIES)
(2014-15)
SUBMITTED TO:
SUBMITTED BY:
VISHAL SANDANSHIVE
DEVYANI PATIL

KCESS INSTITUTE OF MANAGEMENT AND RESEARCH JALGAON

ACKNOWLEDGEMENTS
This project would not have seen the light of the day without the
following people and their priceless support and cooperation. Hence I
extend my gratitude to all of them.
As a student of IMR Jalgaon, I would first of all like to express my
gratitude to Dr. V.V.Katdare, Director, and IMR for granting me
permission

to

undertake

the

project

report

in

their

esteemed

organization. I would also like to express my sincere thanks to Mr.

Vishal Sandanshive for supporting me and being always there for me
whenever I needed.
During

the

actual

research

work,

Mrs.Pushpalata.More

(SHG

manager at JJSBL) and other bank staff that set the ball rolling for my
project. They had been a source of inspiration through their constant
guidance; personal interest; encouragement and help. I convey my
sincere thanks to them. In spite of their busy schedule they always
found time to guide me throughout the project.
He had been a source of inspiration through their constant guidance;
personal interest; encouragement and help. I convey my sincere thanks
to them. In spite of their busy schedule they always found time to
guide me throughout the project. I am also grateful to them for
reposing confidence in my abilities and giving me the freedom to work
on my project. Without their invaluable help I would not have been able
to do justice to the project.

-Devyani Patil

DECLARATION
I hereby declare that this research project report entitled Microfinance (self-help group) submitted by me for the partial fulfillment of
the degree of bachelor in business management, is an original work
done by me. I also hereby declare that this project report has not been
submitted at any time to any other university or institute for the award
of any Degree or Diploma

-DEVYANI PATIL

CERTIFICATE OF INSTITUTE

This is to certify that project report titled microfinance (SHG) is a

genuine work carried out by Miss. Devyani. Prakash Patil of our
management institute for the fulfillment of bachelor in business
management (BBM-BS) degree of Institute of management and
research, Jalgaon
She has worked under our guidance and supervision. The material
referred from other sources has duly acknowledged

(Signature of guide)

(Signature

director)
Name-

Name-

Date-

Date-

Place-

Place-

of

CERTIFICATE OF ORGANIZATION
Date20/1/2015

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Miss. Devyani.Prakash.Patil, BBM (BS)

Final year student of Institute of management and research,
Jalgaon has done project work in our banking organization on SELF
HELP GROUPS under the supervision of Mrs. Pushpalata.More
towards the fulfillment of the degree of bachelors in business
management( business studies) during the year 15th December
2014 to 15th January 2015

Bank

Researcher

EXECUTIVE SUMMARY

There is a mounting hope that microfinance can be large scale poverty

alleviation tool for decades Indias poor have been left out of the reach
of the bank loans. But out of necessity and enterprise, those locked out
of the banking world have found a way out. It is called microcredit-the
extension small loans to individuals who are too poor to qualify for
traditional bank, loans, as they have no assets to be offered as
guarantee. In India, microcredit has largely worked only through self
help groups. Globally it is slowly proving one of the most effective
strategies to remove poverty. Banks too are shedding their old
reluctance to lend to the poor, and are looking to tap the expertise of
microcredit groups to create new market which has been emphatically
projected on the current study
I have studied 5-6 case studies of Jalgaon janata sahakari bank which
were all about how they helped and financed the poor and
economically backward women in the district of Jalgaon
Self-Help Group or in-short SHG is now a well-known concept. It is now
almost two decade old. It is reported that the SHGs have a role in
hastening countrys economic development. SHGs have now evolved
as

movement.

Mainly,

members

of

the

SHGs

are

women.

Consequently, participation of women in the countrys economic

development is increasing. They also play an important role in

elevating the economic status of their families. This has led boost to
the process of womens empowerment.
I undertook this project report mainly for the purpose of understanding
the importance of SHGs in todays banking and Indian economy.
All in all microfinance is all about how bank and government
institutions help the backward class and encourage their savings, and
provide their banking knowledge

INDEX
Introduction
Bank profile
About
Special features
Branch expansion
Performance highlights and profitability
Literature review
Self help group (the heart of microfinance)
Basic knowledge of SHG
Challenges faced by woman entrepreneurs
Overcoming the challenges
Objectives & scope of the study
Research methodology
Data analysis
Analysis1
Analysis2
Analysis3
Analysis4 (case studies)
Findings
Conclusion
Limitations
Suggestions
Bibliography
Questionnaire

INTRODUCTION

What is microfinance?
Microfinance is a source of financial services for entrepreneurs and
small businesses lacking access to banking and related services.

 What is microcredit?
A small financial loan made to poverty-stricken individuals seeking to
start their own business. This type of loan typically does not exceed a
couple hundred dollars, so an impoverished individual can not solely
depend

on

this

type

of

loan

to fund their

business.

Its

also called micro loan.

What

is

the

difference

between

microfinance

and

microcredit?
Although often used interchangeably, microfinance and microcredit are
in fact quite distinct. Microfinance is a much broader concept than
microcredit and refers to loans, savings, insurance, money transfers,
and other financial products targeted at poor and low-income people.
Microcredit refers more specifically to making small loans available to
poor people, especially those traditionally excluded from financial
services, through programmes designed specifically to meet their
particular needs and circumstances.

What is self help group?

A self-help group (SHG) is a village-based financial intermediary
committee usually composed of 1020 local women or men. A mixed
group is generally not preferred. Most self-help groups are located in
India, though SHGs can also be found in other countries, especially in
South Asia and Southeast Asia.
In India, Self Help Groups or SHGs represent a unique approach to
financial intermediation. The approach combines access to low-cost
financial services with a process of self management and development
for the women who are SHG members
The SHGs signify transforming energy into synergy.

In the Indian economy in general, women comprise a significant

proportion of labor force especially in agriculture and rural sector. By
working in factories, laboratories, agricultural fields, construction sites,
mines and numerous organizations, women have been contributing a
great deal to the economic progress of the country. Despite this, they
continue to be underpaid. Moreover, their contribution goes unnoticed.
Also, women workers face serious problems and constraints related to
work, such as lack of continuity, insecurity, wage discrimination,
unhealthy job relationship, absence of medical facilities and accident
prevention and post accident care. The below two real cases of Jodhpur
district of Rajasthan bear a testimony to this fact.
What is my project and what I learnt?
Projects can be further defined as temporary rather than permanent
social systems or work systems that are constituted by teams within or
across organizations to accomplish particular tasks under time
constraints.

As

mentioned

above

that

SHGs

are

the

financial

supporters for rural people specially women, so I have made an effort

by studying how JALGAON JANATA SAHAKARI BANK has supported such
groups. The graphs will draw the attention towards some statistics
which will explain how SHGs are growing popular in rural and urban
cities as well.

What I learnt-

Basics of SHGs and their working mechanism

Different schemes provided by JJSBL
Problems banks face during the financing process
How to setup such groups
Empowerment of women through microfinance
How small business units would lead to our countrys economic
development

BankJalgaon janata sahakari bank limited is a scheduled and developing

bank of Jalgaon having 35 branches in Maharashtra state each of which
providing convenient services to people of all classes.
Balance sheet of the bank as on 31 st march 2014 showed a profit of 6,
76, 09,012 rupees
The bank is making unflinching efforts towards the development of self
help groups in rural areas of Jalgaon. The bank has being forward in
terms of inventing new services of savings since the last few years.
Talking about the same, JJSBL has also provided loans to farmers for the
purchase of solar-pumps.
For the purpose of empowering the poor the bank has initiatedFarmer savings account, Joint liability group, and self help
groups which is getting huge response since 2012-13

BANK PROFILE

Type
Industry
Founded on
Head office
Key people

Public limited company

Banking
20th January 1979
Seva, 117/119, navi peth, Jalgaon425001
1. Shri.Sanjay.Champalal.Birlachairman
2. Shri.Vidyadhar.Bhalchandra.Danda

Total staff
Products

wate-managing director
367
1.deposit accounts
2.loans
3.banking and utility services

Revenue
Total assets
Website
Telephone

4.RTGS
Rs. 63903012.60
Rs. 550815021.42
www.jjsbl.com
0257-2223699
0257-2229963

Jalgaon janata sahakari bank which is a renowned and legendary bank

of North Maharashtra was established on 20th January 1979
With its constant efforts in the banking field and mounting public
participation it opened its first branch in 1983 which is popularly known
as market yard branch
The bank automated its operations for the first time ever in 1991 by
installing computerized software in its Dana bazaar branch
After effectively scattering and dispersion of its operations in Jalgaon,
the bank started its area of operations in Dhule and expanded itself

Dhule peoples co-operative bank is successfully merged into JJSBL

in the same year i.e. 1993
Jalgaon Janata InfoTech Pvt. Ltd. was established in February,
1997. Today it is one of the leading Banking Software Company in the
state of Maharashtra. The Company has its SHRIBHUSHAN Online
Banking Software with more than Seven Hundred and Fifty Installations.
The Company is promoted by directors who have rich experience in the
field of Co-Op. Banking, Software Development, System Integration and
Networking.
In the initial years of 20th century the banks business was routed
through robust and core banking solutions and got all its branches
fully computerized
In 2003-2004 the bank completed its silver jubilee. It was in the later
months of 2004 when JJSBL laid its special focus on forming and
financing women and poor people from rural and urban background.
With more than 11640000 shareholders, the bank has an investment
of

more

than

2470196000

rupees

in

government

and

semi

government institutions and holds share in banks like-JDCC, DDCC, and

MSC
Special features of Jalgaon Janata Sahakari Bank Ltd

Variety of accounts designed to meet all your needs

Insurance and mutual fund distributors
SMS banking
Special kind of loans suiting the needs of each class of society
Depositary services
Empowerment of backward classes
Active participation in social causes
Arrange fun-fairs, in which their SHGs participate and earn money

Financial inclusion program

A special focus is being laid on Financial Inclusion by ways of

Forming new Self Help Groups(SHGs)

Joint Liability Groups(JLGs)
Farmers club, etc
Each of the above service accounts offered by the bank is simply for
the empowerment of the poor and backward classes people. As regards
of the last 4 years, JJSBL has always being there for the ladies who
wanted to come together and form financial groups.
As per the articles in local newspapers, the bank has constantly being
active in taking seminars, arranging workshops for motivating the
women

Branch expansion
JJSBL has a network of branches and 1 extension counter spread all
over in the parts of north Maharashtra, Mumbai, Pune, Marathwada &
Vidarbha regions of Maharashtra state
Reserve bank of India has granted permission to your bank for opening
branches at Shirpur and PCMC both these ranches will commence its
operations shortly.

Side by side with spreading out in unchartered territories, theyre

investing significant resources to improve their branch ambience and
facilities for customer comfort and convenience

PERFORMANCE HIGHLIGHTS OF THE BANK

1
2
3
4
5
6
7

Particulars

2012-13

2013-14

Change%

Own funds
Paid-up capital
Reserves
Aggregate deposits
Aggregate advances
Investment
Net profit
CRAR
Working capital

98.11
25.12
73.01
884.31
565.74
321.56
7.06
11.53%
1002.43

108.05
29.10
78.95
973.71
625.45
363.58
6.39
11.91%
1085.52

10.11%
15.84%
8.14%
10.11%
10.55%
13.02%
-9.49%
3.30%
8.29%

The Total Business Mix of JJSBL stood at Rs.1599.16 Cr as on March 31,

2014 as against Rs.1450.04 Cr in the previous year reflecting an
increase of Rs.149.11 Cr

As at end-March 2014, Deposits and Gross Advances stood at

Rs.973.71 Cr and Rs.625.45 Cr, thereby registering a growth of 10.11%
and 10.55%, respectively.

The CD ratio stood at 64.23% as on March 2014 as against 63.98% as

of March 2013.

The Advances portfolio of the Bank is well diversified, balanced and the
credit needs of productive sectors of the economy have been met.

The Priority Sector (PS) Advances constituted 49.11% of Adjusted Net

Bank Credit (ANBC) as against the requirement of 40% as on March
2014.

The Bank has registered the Net Profit of Rs. 6.39 Cr as at the end of
March 2014.

The Net worth of the Bank increased to Rs.57.03 Cr from Rs. 51.07 Cr
compared with last year.

PROFITABILITY
Despite this challenging environment, Bank has been able to perform
well, registering an all round growth in various parameters. Total
Income increased from Rs. 106.08 Cr to Rs. 120.39 Cr in the reporting
year recording growth of 13.49%. Interest Income showed a growth of
9.01%. The total expenditure (excluding provisions and contingencies
also increased to Rs. 113.99 Cr showing growth of 13.14%. As stated
earlier despite challenging economic environment your Bank posted a
Net Profit of Rs. 6.39 Cr after making the provisions and contingencies.
Bank's policy of declaring dividend is to reward the shareholders as
well as to plough back sufficient profits for maintaining a healthy
capital adequacy ratio and supporting future growth. Accordingly, your
Board of Directors is happy to propose a dividend @ 10.00% on Prorata Basis.

LITERATURE REVIEW
SELF-HELP GROUPS
(The heart of microfinance)
Muhammad Yunus, a Nobel Prize winner, introduced the concept of
Microfinance in Bangladesh in the form of the "Grameen Bank".
The National Bank for Agriculture and Rural Development (NABARD)

took this idea and started the concept of microfinance in India. Under
this mechanism, there exists a link between SHGs (Self-help
groups), NGOs and banks. SHGs are formed and nurtured by NGOs and
only after accomplishing a certain level of maturity in terms of their
internal thrift and credit operations are they entitled to seek credit from
the banks. There is an involvement from the concerned NGO before
and even after the SHG-Bank linkage. The SHG-Bank linkage
programme, which has been in place since 1992 in India, has provided
about 22.4 lakh for SHG finance by 2006. It involves commercial banks,
regional rural banks (RRBs) and cooperative banks in its operations.
Society is Focusing on: Development of Self Help Group for
WomenIn India, Self Help Groups or SHGs represent a unique approach to
financial intermediation. The approach combines access to low-cost
financial services with a process of self management and development
for the women who are SHG members. SHGs are formed and supported
usually by NGOs or (increasingly) by Government agencies. Linked not
only to banks but also to wider development programmes, SHGs are
seen to confer many benefits, both economic and social. SHGs enable
women to grow their savings and to access the credit which banks are
increasingly willing to lend. SHGs can also be community platforms
from which women become active in village affairs, stand for local
election or take action to address social or community issues (the
abuse of women, alcohol, the dowry system, schools, and water
supply).

GoalsSelf-help groups are started by non-governmental organizations (NGOs)

that generally have broad anti-poverty agendas. Self-help groups are
seen as instruments for a variety of goals including empowering

women, developing leadership abilities among poor people, increasing

school enrollments, and improving nutrition and the use of birth
control. Financial intermediation is generally seen more as an entry
point to these other goals, rather than as a primary objective. This can
hinder their development as sources of village capital, as well as their
efforts to aggregate locally controlled pools of capital through
federation, as was historically accomplished by credit unions.
NABARD's 'SHG Bank Linkage' programMany self-help groups, especially in India, under NABARDS SHG Bank
Linkage program, borrow from banks once they have accumulated a
base of their own capital and have established a track record of regular
repayments.
This model has attracted attention as a possible way of delivering
micro-finance services to poor populations that have been difficult to
reach directly through banks or other institutions. "By aggregating their
individual savings into a single deposit, self-help groups minimize the
bank's transaction costs and generate an attractive volume of deposits.
Through self-help groups the bank can serve small rural depositors
while paying them a market rate of interest."
Advantages of financing through SHGs
An economically poor individual gains strength as part of a group.
Besides, financing through SHGs reduces transaction costs for both
lenders and borrowers.
While lenders have to handle only a single SHG account instead of a
large number of small-sized individual accounts, borrowers as part of
an SHG cut down expenses on travel (to & from the branch and other
places) for completing paper work and on the loss of workdays in
canvassing for loans.
Evolution of Self Help Groups in India

In India, soon after independence, there has been an aggressive effort

on the part of the government, which was concerned with improving
the access of the rural poor to formal credit system. Some of these
measures have been institutional, while some others were through
implementation of focused programmes for removal of rural poverty.
Reaching out of the far-flung rural areas to provide credit and other
banking services to the hitherto neglected sections of the society is an
unparallel achievement of the Indian banking system. The main
emphasis is the spread of the banking network and introductions of
new instruments and credit packages and programmes were to make
the financial system responsive to the credit the weaker sections in the
society comprising small and marginal farmers, rural artisans, landless
agricultural and non-agricultural laborers and other small borrowers
falling below poverty line.
Consequently, by the implementation of several poverty alleviation
programmes, the number of people below the poverty line has declined
from 272.7 million in 1984-85 to 210.8 million in 1989-90, in 19912000, which constitutes over 21 percent of the population.
The institutional credit system needs to meet the challenges of
delivering credit to an ever-increasing number of rural people who need
greater access to formal credit. It may have to reinforce its own
structure at the grass root level and also have to devise new ways of
reaching out of the rural poor.
As a result, the experience of implementation of the above discussed
poverty alleviation programmes lead to the introduction of the
Integrated Rural Development Programme (IRDP) on 2nd October, 1980
with the specific objective of raising the poor rural families above the
poverty line. Such families considered credit support from banks as an
important input in taking up economic and gainful activities.
In spite of these impressive achievements in the expansion of the
credit delivery system and special programmes, nearly half the
indebted rural households are still outside the ambit of the institutional
system.

They

approach

the

moneylenders

for

meeting

their

consumption and production in the absence of institutional support.

Some of the poor who have not been reached even by the vast network
of the institutional credit
delivery system, have organized themselves into self help groups
(SHGs) and many such groups have come into existence either
spontaneously or with the active involvement of the voluntary agencies
which motivated the rural poor to pool their meager financial resources
for meeting their small and frequent consumption and production
credit needs.

BASIC KNOWLEDGE OF SHG

I.

What are SHGs?

Self help Group (SHGs) are small group of poor people. The members
of an SHG face similar problems. They help each other, to solve their
problems. SHGs promote small saving among their members. The
savings are kept with the bank. This is common fund in the name of the
SHG. The SHG gives small loans to its members in the name of
common fund.
I.

Size of the SHG

The ideal size of an SHG is 10 to 20 members.

II.

Is it officially recognized to the bank with informal groups?

Yes, RBI and NABARD have approved banking with SHGs. RBI has
classified loans to SHGs as priority sector lending.

II.

Who help to form SHGs?

A reasonably educated and helpful local person has to initially help the
poor people to form groups. He or She tells them about the benefits of
thrift and advantages of forming groups. This person is called
as animator or facilitator.
I.

Any of the following persons can be a successful animator:

Retired school teacher or a retired government servant, who is well

known locally.

A health worker/ a field officer/ staff of a development agency or

department of the State Government.

YOU yourself! (The field officer or a staff member of a commercial

bank/ regional rural bank or a field staff from the local co-operative
bank or society can also help the poor in forming groups.)

A field level functionary of an NGO.

An unemployed educated local person, having an inclination to help

others.

member/participant

in

the

Vikas

Volunteer

Vahini

(VVV)

Programme of NABARD.

Woman animators can play more effective role in organizing women

SHGs.
The animator cannot organize the groups all alone. He or she will need
guidance, training, reading material, etc.

II.

Usually, one of the following agencies help:

A voluntary agency or Non Government Organization (NGO).
The development department of the State Government.
The local branch of a bank.

III.

What does the animator do?

The animator talks to people in the village or at their homes.

He or she explains the benefits of thrift and group formation.

No promise of bank loan is given to anyone.

He or she helps the group members to hold one or two initial

meetings.

The group finds a group leader, for holding meetings, keeping

books, etc.

The animator guides and encourages the leader and the group
members.

III.

Size of the SHG

The ideal size of an SHG is 10 to 20 members.

(Advantage: In a bigger group, members cannot actively participate.
Also, legally it is required that an informal group should not be of more
than 20 people.)
The group need not be registered.

IV.

Membership

i.

From one family, only one person can become a member of an SHG.
(More families can join SHGs this way.)

ii.

The group normally consists of either only men or of only women.

Mixed groups are generally not preferred.

iii.

Womens groups are generally found to perform better. (They are

better in savings and they usually ensure proper use of loans.)

iv.

Members should have the same social and financial background.

(Advantage: This makes it easier for the members to interact freely
with each other. If members are both from rich as well as poor class,
the poor may hardly get an opportunity to express them.)

I.

Some Common Factors for Membership in an SHG

Women/men from very poor households.

Those who depend on money lenders even for daily necessities.

II.

Those with a per capita income not exceeding Rs. 250 per month.

Those having dry land holding not exceeding 2.5 acres.

Common living conditions for the Group Members

Living in kutcha houses.

Having no access to safe drinking water.

Having no sanitary latrine.
Those that have only one or no one employed in the family.
Presence of illiterate adults in the family.
Presence of an alcoholic or drug addict in the family or a member
suffering permanently from prolonged illness.
Presence of children below five years in the family.
Family eating two meals or less a day.
Scheduled Caster or Scheduled Tribe families.
If a family has at least four of the above 9 common living conditions, it
can be considered poor, and one member of that family can be
encouraged to become a member of an SHG.
(These are only examples. You can also use locally important conditions
to decide whether a family is poor.)

V.

Meetings

The group should meet regularly. Ideally, the meetings should be

weekly or at least monthly. (Advantage: They become closer, if they
meet regularly. This helps them to understand each others difficulties
better.)

Compulsory attendance: Full attendance in all the group meetings

will make it easy for the SHG to stabilize and start working to the
satisfaction of all.

Membership register, minutes register etc., are to be kept up to date

by the group by making the entries regularly.(Advantage: This helps
you to know about the SHG easily. It also helps to build trust among
the SHG members.)

VI.

Keeping of Accounts by the SHG:

Simple and clear books for all transactions to be maintained.

If no member is able to maintain the books, the SHG may take

outside help. (It has been seen that a boy or girl from the village with
some educational qualification does this job enthusiastically. After
some months, the group can even consider giving him or her a small
reward for this job.)

Animator can also help.

All registers and account books should be written during the course
of the meeting. (Advantage: This creates confidence in the minds of
members who are unable to read and write.)

What are the books kept by an SHG?

I.

Minutes Book:
The proceedings of meetings, the rules of the group, names of the
members etc. are recorded in this book.

II.

Savings and Loan Register:

Show the saving of member separately and of the group as a whole.
Details of individual loans, repayments, interest collected, balance, etc.
are entered here.

III.

Weekly/ fortnightly/ Monthly Register:

Summary of Receipts and payments.

Updated in every meeting.

IV.

Members passbooks:
Individual members pass books in which individuals savings and loan
balance outstanding is regularly entered.

VII.

Major Functions of an SHG

a.

Savings and Thrift:

All SHG members regularly save a small amount. The amount may be
small, but

savings have to be a regular and continuous habit with all

the members.
Savings first-Credit later should be the motto of every SHG member.

 SHG members take a step towards self-dependence when they start

small savings. They learn financial discipline through savings and
internal lending.

b.

Internal lending:

The SHG should use the savings amount for giving loans to members.
The purpose, amount, rate of interest, schedule of repayment etc., are
to be decided by the group itself.
Proper accounts to be kept by the SHG.

c.

Discussing problems:

In every meeting, the SHG should be encouraged to discuss and try to

find solutions to the problems faced by the members of the group.
Individually, the poor people are weak and lack resources to solve their
problems. When the group tries to help its members, it becomes easier
for them to face the difficulties and come up with solutions.

d.

Taking bank loan:

The SHG takes loan from the bank gives it as loan to its members.
(Details may be seen in the next chapter.)

Soon after an SHG is formed and one or two meetings held where the
savings are collected, a savings bank account can be opened in the
name of the SHG.

CHALLENGES FACED BY THE WOMEN ENTREPRENEURS

Challenges are faced by the women entrepreneurs due to many
reasons. Some of the challenges faced by the women entrepreneurs
include

Intense

production and quality standards as well as low confidence and morale.

Many women started their own business due to the adverse

circumstances, such as loss of spouses, divorce or financial hardship.

Lack of follow up and holding support (i.e. Capital, market linkages,

competition

from

similar

products,

limited

knowledge,

technical information and marketing techniques) after receiving

Entrepreneurship development training.

A risk adverse mindset.
Inadequate capital.
Networking problem (i.e. with raw supplier to buyer of products)
Low level of motivation and courage.
Lack of support from male members (of the families) as well as banks
Large magnitude of the target group of poor people.
Attitudinal rigidities.

Difficulty in creating awareness among people.

Limited resources with the NGOs.
Large requirements of training and sensitization of issues.
Limited number of experienced intervention agencies.
Diversities of situations due to wide coverage.

OVERCOMING THE CHALLENGES

The challenges faced by the women entrepreneurs can be overcome
with the help of the following measures

Creating the Importance of Entrepreneurship program and skills

training, and MF and support under single roof.

Training programme operating in several states helped NGOS-MFIs
provide their microfinance clients different set of skills for successfully

running enterprises.
Provide micro credit for livelihood support and to micro enterprises

development.
Encouraging women entrepreneur to utilize the loans for productive

purposes and have the potential to become entrepreneur.

Establishing a network of SHG to serve as a self-help community for

micro enterprises development activities.

Social recognition of women leading an enterprise.
Developing female mentors, trainers and advisors.
Establishing sources of credit.

OBJECTIVE OF THE STUDY

To
To
To
To

study the socio-economic background of respondents.

examine the Pre-SHG and Post-SHG status of SHG members.
study the impact of SHGs on the respondents.
study the benefits received by the respondents through various

income generating activities.

To study the various problems faced by the SHG members in the study
area.

SCOPE OF THE STUDY

This piece of work will draw our attention towards the condition of
women in todays society and the potential they possess to achieve
wonders
Itll help

to

conclude

how

JJSBL

is

serving

society

through

empowerment of weaker sections

Can be used in the SWOT analysis of micro-financing structure of
JJSBL

RESEARCH METHODOLOGY

INTRODUCTION
This chapter focuses on the methodology & the techniques used for the
collection, classification & tabulation of data. It light on the research
problem, the objective of study & its limitations.

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the problem. It
is a game plan for conducting research. In this we describe various
steps that are taken by the researcher.
All

progress

is

born

of

inquiry.

Doubt

is

often

better

than

overconfidence, for it leads to inquiry and inquiry leads to invention.

Research in a common parlance is a search for knowledge. Research is
an art of scientific and systematic investigation. Thus research
comprises defining and redefining problems, formulating hypothesis or
suggested solutions; collecting, organizing and evaluating data, making
deductions and reaching conclusions. Research methodology is the

arrangement of condition for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with
economy in procedure. Research Methodology is the conceptual
structure within which research is conducted. It constitutes the
blueprint for the collection measurement and analysis of the data.
Research methodology is a framework for the study and is used as a
guide in collecting and analyzing the data. It is a strategy specifying
which approach will be used for gathering and analyzing the data. it
also includes time and cost budget since most studies are done under
these two constraints. The research methodology includes overall
research design, the sampling procedure, the data collection method
and analysis procedure.

TYPE OF RESEARCH USED: Descriptive Research

In the study descriptive research design has been used. As descriptive
research design is the description of state of affairs, as it exists at
present. In this type of research the researcher has no control over the
variables; he can only report what has happened or what is happening
Descriptive research designs are those design which are concerned
with describing the characteristics of particular individual or of the
group. In descriptive and diagnostic study the researcher must be able
to define clearly what he wants to measure and must find adequate
method for measuring it.

METHOD OF DATA COLLECTION

After the research problem has been identified and selected the next
step is to gather the requisite data. While deciding about the method of
data collection to be used for the researcher should keep in mind two
types of data i.e. primary and secondary.

Primary Data
The primary data are those, which are collected afresh and for the first
time, and thus happened to be original in character. We can obtain
primary

data

either

through

observation

or

through

direct

communication with respondent in one form or another or through

personal interview.
Methods used in primary data collection Observation method
Interview method
Questionnaire method

Secondary Data
The secondary data on the other hand, are those which have already
been collected by someone else and which have already been passed
through

the statistical

processes. When the researcher

utilizes

secondary data then he has to look into various sources from where he
can obtain them. For e.g. books, magazine, newspaper, internet,
publications and reports.

In this study data have been taken from various secondary sources like:

Internet
Books
Magazines
Newspapers
Journals

DATA ANALYSIS
Analysis1- SHG statistics

Total number of SHGs of JJSBL-

3800

Women members in those SHGs-

60000

Savings of these women till date-

80000000 rupees

Loan disbursement till date-

250000000 rupees

Training sessions in the last financial year 2013-14-

110

InterpretationAccording to the statistics of JJSBL, they have a total of 3800 SHGs

all over the states. 60% of these SHGs are solely combined of women.
Savings done by these women since 2002 till present year comes up to
Rs. 80000000. And on the other hand Jalgaon janata has lent up to
Rs.250000000 of loan to these women

In the financial year 2013-14, the bank has successfully arranged

approximately 110 training sessions and women empowerment fairs.

Analysis 2 - loan distribution

Sr. no

Taluka name

1
2
3
4
5
6
7
8
9

Nandurbar
Sawda
Yawal
Bodwad
Chalisgaon
Jamner
Amalner
Bhusawal
Jalgaon
T

otal

No.

of

Loan

groups

disburseme

1
1
14
22
19
11
80
179
250

nt amount
30000.00
76000.00
443500.00
906000.00
1278000.00
1384000.00
671500.00
11056000.00
181156300.0

577

0
34001300.00

loan disbursement

1-nandurbar

1-s awda

14-yawal 22-bodwad 19-chalis gaon 11-jamner

80-amalner

179-bhus awal 250-jalgaon

InterpretationThe above pie-chart depicts that out of the 3800 SHGs of JJSBL all over
Maharashtra, Jalgaon alone consists 250 SHGs followed by bhusawal,
which has 179 SHGs.
The other Talukas doesnt have any impressive number of SHG
compared to these cities. This is mainly because of the rural
background of these cities
One of the most obvious reasons of such fluctuations is that JJSBLs
head office is situated in Jalgaon
Apart from Jalgaon and bhusawal, amalner also have 80 SHGs.

Analysis 3- Activities carried out by Jalgaon SHGs

Name of the activities

percentage of the groups

engaged
Papad-making

40%

Sewing

30%

Farming

20%

Bag-making

10%

common activities by groups

papad making
sewing
farming
bag-making

InterpretationOn the basis of the data from 5-6 most popular SHG samples, it was
found that the most common activity in which almost 40% of the groups
engage themselves in, is papad making.
30% of the women groups prefer sewing activities. And the rest of the
percentage is occupied by groups who are engaged in farming and bag
making.
Apart from these many other SHGs are also focusing on marketing their
home-made products in local hostels, hotels and schools.

Sr. no.
1
2

4
5
6

7
8

10
11

Factors to be
checked
Group size
Type
of
members

Very good

Good

Unsatisfactor
y
15-20
10-15
Less than 10
Only
very 2 or 3 not Many
not
poor
very
poor very
poor
member
members
member
Number
of 4 times in a 2 times in a Less than 2
member
month
month
times in a
month
Attendance
More
than 70 to 90%
Less
than
of members
90%
70%
Participation On a Very Medium level Low level
of members
high level
Savings
4 times
3 times
Less than 3
collection
times
within
the
group
Amount
to Fixed amount Varying
be saved`
amount
interest
on Depending
24 to 36%
More
than
internal loan upon
the
36%
purpose
Utilization of Fully used for Partly
used Poor
savings
by loaning the for loaning
utilization
SHGs
members
Loan
More
than 70% to 90%
Less
than
recoveries
90%
70%
Maintenance All books are Most
Irregular
in

of books

12
13

regularly
maintained

important
registers are
updated
Accumulated More
than Rs.3000savings
5000/5000/Knowledge of Known to all
Known
to
the rule of
some
SHGs

maintaining
books
Less
than
3000/not known to
anyone

Analysis 4- Case studies

CASE STUDY 1
Name- Sharda Mahila Bachatgat
Area of operations- Rameshwar colony, eknath nagar, Jalgaon
Contact number- 8237509835
Established on- 26th July 2012
Account number- 11214, market yard branch
Number of members- 20
Savings- 200Rs per member
Monthly savings- 4000Rs/Age- 30 months
Total savings- 120000/Business engaged in- sewing
Bank loan-

i. 100000Rs/ii. 200000Rs/-

No. of Installments- 980

Interest rate- 14% per annum
24 months pay back agreement
Maintenance of books- simple journals maintained

AboutThe members of this group who are all specifically women, are found to be
regular in their operations and pay their monthly installments promptly
They also conduct their meetings on a timely basis. They have also
borrowed loans twice in the last 30 months which was professionally
utilized for the purpose of1. Purchase of Sewing machine
2. Sewing Business expansion by purchasing more material and place
to conduct stitching classes
After the sewing machine was purchased 15 out of 20 women in the group
grabbed the opportunity by getting connected with local dealer and hiring
him as their distributor.
InterpretationConsists 20 members depicts impressive signs. Speaking about the
financial background of the member, 7 of them have a poor financial
history. Loan is fully utilized for the purchase of sewing machine. Each
member saves up to 200 rupees pm gives a picture of punctuality.

Till date the accumulated savings are 120000Rs, apart from this the group
has borrowed loan twice in their time span. The interest charged by the
bank is fixed at 14% pa.

CASE STUDY 2

Name- sant muktai womens group

Area of operations- mehrun, Jalgaon
Founded on-21st September 2007
Savings- 200 Rs per member
Monthly savings- 2000 Rs
Age- 88 months
No. of members- 20
Total savings- 140000/Account number- 8368
Contact number- 842109495

Business engaged in- i. Agriculture

ii. Sewing
Bank loan- 140000/Interest rate- 14% per annum
Loan utilization- purchase of farming equipments
Maintenance of books- NIL

 AboutAs it is seen here that the women are engaged in the business of
agriculture primarily, one can easily conclude that they are from a rural
background and have not as much of knowledge about banking and urban
lifestyle.
Bank has being a rescuer for them and helped them by guiding the basics
of banking mechanism. Until now JJSBL has provided them loan for utmost
3 times during the past 7 years Out of which 80000 was fully employed for
the purchase of agricultural equipments which led to the development of
their business venture
Being habitual in their banking operations and an old customer of the
bank they have repaid their loan successfully
Another business in which theyre engaged in is of sewing. So ultimately 7
women in the group have expertise in manufacturing hand-made Tiffin
bags
3 women in the group have being actively participating in the very
popular programmes of conducted by JJSBL. These ladies sing chants over
there.
InterpretationRural and poor financial background, having an accumulated saving of
140000rs, this group has managed to repay their loan of 140000rs at an
interest of 14%pa. Loan was fully used for the purchase of farming
equipments. Each member contributes 200rs under their savings account.
On the other hand there is no maintenance of books with gives a hint of
dissatisfaction.

CASE STUDY 3

Name- Gulab Mahila Bachatgat

Area of operation- mahajan nagar, Jalgaon
Contact number- 8793563579
Account number- 8914
Founded on- 23rd October 2009
Number of member- 10
Monthly savings- 2009-2012- 100 Rs per member
2012-present- 200 Rs per member
Total savings- 50000/Monthly savings- 2000
Age- 60 months
Bank loan-300000 Rs
Business engaged in- small business units (self-employed)
Interest rate- 14% pa
Maintenance of books- yes, simple registers

 AboutThis group is known for its zest and enthusiasm particularly in the
repayment of their loans. Their enthusiasm can also be seen in their daily
lives. These women manage their household work and have started
personalized businesses on their own. Some of them give mehendi
tuitions.
Similarly they are highly sensitive in the matter of their timely meetings
and conduct them regularly. They also encourage other ladies to
participate in their operations.
Until now, theyve borrowed a sum of 300000 Rs in the last 5 years. Now
theyre planning to borrow 50000 Rs additionally for their home
businesses
Moreover it was seen that after 4 years from their establishment these
women have increased their amount of monthly savings by 100 Rs per
member. This implies that JJSBL has encouraged their saving habits
All the 10 members have started their self-entrepreneurship. After talking
to them it was found that- JJSBL bank has helped them in ways like
recovering their household expenses, fees payment of their children, etc
Interpretation
There are only 10 members, which illustrates a lack of majority qualities.
Since the last 60 months of their association with JJSBL, this group has
borrowed a loan of 300000rs. Interest rate charged by the bank is 14%pa.
Animator says that they are planning to borrow an additional loan of

500000rs which will be fully utilized towards entrepreneurship. Monthly

saving of each member is just 200rs.

CASE STUDY 4

Name- Aadishakti Mahila Bachatgat

Area of operations- mehrun, Jalgaon
Account number- 8754
Founded on- 12th November 2008
Number of member-10
Savings- 100 Rs per member
Monthly savings- 1000 Rs
Total savings- 74000
Age- 74 months
Business engaged in- papad making
Bag making
Farming
Bank loan- 100000 Rs
Interest rate- 14%pa

Maintenance of books NIL

About-

This group consists of basically rural based women. Thats the reason
why theyre not familiar and much literate about the banking
mechanism, but with the help of their other group women and JJSBLs
support, theyve learnt all the basic concepts of banking and ultimately
theyre exploring their talents.
They have started investing in recurring deposits and fixed deposits
which help them in doubling-up their invested money and encouraging
group savings.
Their leader bought a papad making machine. Eventually theyve
established their own papad making business unit. Some of them
started their own ventures of bag-making for Tiffin.
Being from rural background they are much familiar with farming
activities, so their farming activities and efforts have helped them to
repay their loan amount
InterpretationThis group has borrowed a loan of 100000Rs so far, at an interest rate
of 14%pa. Each member contributes up to 100RS pm from their end.
Utilization of bank loan was fully towards their business shows some
good indications of future expansions. Their accumulated savings are
74000rs.Other than this there is no maintenance of books yet

CASE STUDY 5-

Name- shri laxmi mahila bachatgat

Area of operation- saptshringi colony, Jalgaon
Contact number- 9373339731
Account number- 8922
Founded on- 29th January 2009
Number of member- 14
Savings- 200 Rs per member
Monthly savings- 2800 Rs
Total savings- 200000 Rs
Age- 72 months
Business engaged in- stitching clothes
Papad making
Bank loan- 100000 Rs

Repayment of bank loan- within 12 months

Interest rate- 14% pa
Maintenance of books- savings and loan register

About-

The members of this group were illiterate on the first place, but their
head person was literate.
Having an association with the bank has helped them to literate
themselves in some terms. At the start they didnt even know about
how to sign and used to give their thumb print on documents. But now
with help of JJSBLs employees they have learnt how to sign.
Another highlight about this group is that they started attending the
free computer workshops arranged by the bank.

Surprisingly they

started using computers at home and everywhere. The bank loan of

100000 Rs which they borrowed in 2010 was sincerely repaid after.
Utilization of the bank loan was fully towards the purchase of sewing
machine. As we can see the bank loan amount wasnt enough to buy
papad

making

machines

so

henceforth

they

started

making

handmade papads.
Interpretation
Bank loan of 1 lakh rupees has being effectively repaid by the bank.
Savings of each member is 200rs per month which help them to pay

the interest of 14% pa on their loan. Also their accumulated savings till
date is 200000rs through which they lend internal loans in their group
members. Maintenance and recording of their monthly transactions is
also seen here.

CASE STUDY 6-

Name- Tejguru Mahila Bachatgat

Are of operation- Sai Prasad colony, Jalgaon
Head member- sarla koli
Contact number- 8087998273
Account number- 10287
Established on- 26th October 2013
No. of members- 12
Savings- 200 Rs per member
Monthly savings- 2400 Rs
Age- 15 months
Total savings- 310000

Business engaged in- papad making

Bank loan- 100000 Rs
Interest rate- 14%pa
Participation of member- active participation in JJSBLs events
Maintenance of books- monthly registers

About-

Being a newly formed group, it has still managed to grow and show
rational development.
This group is mainly engaged in the occupation of papad making.
Unlike other groups which are mentioned above, Tejguru Mahila group
carries out the task in a very different and profitable way by
participating

in

various

fun-fairs

and

sell

their

papads

at

reasonable rates.
Bank has lent them a sum of rupees 1 lakh. When asked to the bank
about their activities I got to know that they regularly prepare the
nagli flour dough for making papads. These papads are then sold
to hotels and other restaurants. Bank identified their teamwork and
marketing skills and supported them by giving them an opportunity to
setup papad-stalls in last years Jalgaon janata fair
According to the bank employees, they got a very tremendous
response and they also earned a whooping amount of 70000 in just 3
days of the fair. They are now eagerly waiting for the next years fair of
JJSBL

 Interpretation
Their

monthly

savings

of

200rs

per

member

has

resulted

in

accumulated savings of 310000 rupees. Members are also actively

taking part in group events, which helped them to repay their 100000rs
loan at an interest rate of 14% pa. They maintain books on regular
basis for recording their marketing operations.

FINDINGS

1) JJSBL has established approximately 3800 SHGs all over Maharashtra.

They have lent up to 250000000 rupees of loan to these SHGs. 110
training sessions were arranged in the last financial year towards the
2)

empowerment of these women

Analysis no. 2 gives us a picture that 3/4th of their loan share is being
given to SHGs in Jalgaon areas, followed by bhusawal. Out of the total
3800 SHGs of JJSBL, there are nearly 250 SHGs in Jalgaon and 179
SHGs in bhusawal. Other Talukas dont have much of impressive

statistics
3) With the help of analysis no. 3, we can conclude that 40% of the
women prefer papad-making activities & subsequently sewing,
farming and bag-making is preferred by 30%, 20% and 10% of women
respectively.
4) Findings through case studies
Sharda Mahila SHG- JJSBL made a great and positive impact on their
financial hardship

 Sant muktai SHG- no maintenance of accounting books

Gulab Mahila SHG-saving habits of the woman were encouraged
Adishakti Mahila SHG- learnt banking mechanism and got easy credit
access
Shri laxmi Mahila SHG- got benefited by learning computer basics in
JJSBL seminars
Tejguru Mahila SHG- got a huge market for their papad making
business
5) JJSBL provides loan to such SHGs at 14%pa interest rate which is quite
reasonable for both i.e., bank and SHGs
6) There are more number of female oriented SHGs than men SHGs
7) NABARD doesnt provide any subsidy to JJSBL.
8) Compared with other scheduled banks in Jalgaon district, this bank has
managed to give power to rural as well as urban women.

CONCLUSION

In my opinion, the outcomes demonstrate that JJSBL is making a

positive impact on the lives of the citizens in the state of Maharashtra
who are particularly from weaker sections. During the study I found out
that the bank has been allowing and supporting group formation,
encouraging savings and monitoring the inter-loaning structure.
Finance is an element which everyone needs. Regular and immediate
finance can play an important role for development of socio-economic
conditions of the people particularly the rural poor. Microfinance is
expected to play a significant role in poverty alleviation and rural
development particularly the rural women. The potential for growing
micro finance institutions in India is very high. Major cross-section can
have been benefited if this sector will grow in its fastest pace.

From the analysis of data it can be concluded that numbers of

members have started savings only after joining the groups while
majority of the members have no savings in the pre-SHG era. After
joining the groups most of the members solved their problems alone

LIMITATIONS

1. Time constraints- Shortage of time was a very big constraint due

to which not all 3800 SHGs were studied effectively
2. Error in sampling- Out of the 6 SHGs samples which have been
selected for the purpose of data analysis, there may be
possibilities of vague, erroneous and volatile data
3. Size of data analysis- Since respondents have been in a tight
work and the majority of respondents educational background is
low

creates

some negligence

in

filling

the

questionnaire.

Therefore, these conditions might affect the quality of the paper

to some extents

SUGGESTIONS
This part will lay out some suggestions from my side to JJSBL as well as
the SHGs women with whom I responded. The suggestions are as
follows-

Bank should decrease the interest rate at least by 1%-2%, so that

there wont be any load on SHGs member. Instead of charging
higher interest rate, bank can share a percentage of profit from
SHGs business operations
Bank needs to keep a check on the amount theyre providing to
SHGs, due to corruption and other loop-holes
There should be regular maintenance of accounting books by the
members

 There is a lack of post-training formal follow-up. JJSBL needs to

assist the women in making improvements in their working after
they have completed their theoretical training session
There are high fluctuations and differences seen in men, women
&combined SHG and also rural and urban SHG. Bank should
maintain a balance in them
There should be rotation amongst SHS leadership
Bank should partner with NGOs and academic institutions to
increase innovations

BIBILOGRAPGHY

Following are the sources through which I gathered data

www.jjsbl.com
www.google.com
https://www.nabard.org/
Annual Report Jalgaon Janata Sahakari Bank Limited -2013-14
V.J.R. Emerlson Moses, "Women empowerment through SHGs : A

micro study", International Referred Research Journal, Vol. II,

Issue 16, January 2011
News articles published by Divya Marathi relevant to JJSBL
www.scribd.com

 Economic

survey of Maharashtra 2012-13 conducted by

directorate of economic and statistics, planning department,

govt. of Maharashtra, Mumbai

QUESTIONNAIRE
Section A :
Name of the group :

___________________________________
________

Address of the group:

___________________________________
________

Membership composition and number of members :

_____
Women :

_____
_____
Month and year of group formation/Age of the group : ________________
Funds available with the group as on date of this evaluation :

Source

Amount

Members savings(monthly + total)

___________

Interest on loans

___________

Bank interest

___________

TOTAL

==========

B : Essential criteria that the group must fulfill

Score 1 if point is fulfilled and 0 if not. There are no scores in-between.
These criteria must be essentially present in every group; Even if one is
not present, it means the group requires focused attention for some more
time.
1. The group is meeting regularly without being asked or reminded.
Comments :
______________________________________ Score : _______
_

2. There is at least 80% attendance at any given meeting.

Comments :
______________________________________ Score : _______
_
3. Loans are available to all members and not just the same few.
Comments :
______________________________________ Score : _______
_
4. There is a regular rotation of leadership and responsibility-sharing.
Comments :
______________________________________ Score : _______
_
5. Regular savings are made by all members.
Comments :
______________________________________ Score : _______
_
6. The groups documents and books of accounts are well-maintained,
without any assistance from JJSBL.
Comments :
Score : _______
______________________________________

_
7. The total Common Fund in the group (minus borrowed capital)
amounts to at least Rs.1,000/- per member.
Comments :
______________________________________ Score : _______
_
8. At least 50% of the group members (or their families) possess a
regular source of income.
Comments :
______________________________________ Score : _______
_
9. The group is in contact with other institutions for technical and/or
financial resource mobilization.
Comments :
______________________________________ Score : _______
_
SectionC :
Optional criteria that the group may fulfil
Score 1 if point is fulfilled and 0 if not. There are no scores in-between.
These criteria are optional; they need not be considered in deciding
whether to withdraw from a group unless the evaluator has some specific
concern in mind.
1. The group has at least one trained promoter and access to the
services of other trained promoters (e.g., in accounts, health and etc.)
Comments :
______________________________________ Score : _______
_
2. The group has an adequate place to meet where all are allowed to
enter.
Comments :
______________________________________ Score : _______
_
3. The group is successfully managing at least one Group Income
Generating Programme.
Comments :
______________________________________ Score : _______
_

4. The group has successfully conducted literacy, numeracy, and

functional education classes for its members.
Comments :
______________________________________ Score : _______
_
5. The group is involved in promoting some social and cultural activities
among its members and the community.
Comments :
______________________________________ Score : _______
_
6. The group has made at least one effort to promote social justice
and/or prevent the exploitation of its own members by others.
Comments :
______________________________________ Score : _______
_
Section D : Other critical points
This section has YES/NO responses. Negative responses have to be given
serious consideration in deciding whether to phase out of the group.
1. Does the group have any liabilities against JJSBL?
Yes : ____

No : ____

Comments :
_________________________
_

2. Has the group undergone the full training syllabus with minimum 80%
attendance in each session?
Yes : ____

No : ____

Comments :
_________________________
_

3. Is the group following its rules and regulations properly, with sanction
and control mechanisms?
Yes : ____

No : ____

Comments :
_________________________
_

4. Is the group following collective decision-making processes?

Yes : ____

No : ____

Comments :
_________________________

_
5. Does the group have a clear vision and plans for the future?
Yes : ____

No : ____

Comments :
_________________________
_

Section E:
Summing Up
1. Essential criteria:
Maximum points obtainable: 12
Minimum points obtainable: 0
POINTS OBTAINED BY THIS GROUP:
2. Optional criteria:
Maximum points obtainable: 8
Minimum points obtainable: 0
POINTS OBTAINED BY THIS GROUP:
3. Evaluators main observations: ________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
4. Evaluators recommendations regarding phasing out by JJSBL :
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
________________________________
Date of evaluation

___________________________
Signature of Evaluator