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 Micro-finance (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 of director)

Name- Name-

Date- Date-

Place- Place-
 CERTIFICATE OF ORGANIZATION
Date-20/1/2015

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 a 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

Bank-

Jalgaon 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 31st 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 initiated- Farmer savings
account, Joint liability group, and self help groups which is getting huge response since
2012-13
 BANK PROFILE

Type Public limited company

Industry Banking

Founded on 20th January 1979

Head office Seva, 117/119, navi peth, Jalgaon-425001

Key people 1. Shri.Sanjay.Champalal.Birla-chairman

2. Shri.Vidyadhar.Bhalchandra.Dandawate-
managing director

Total staff 367

Products 1.deposit accounts

2.loans

3.banking and utility services

4.RTGS

Revenue Rs. 63903012.60

Total assets Rs. 550815021.42

Website www.jjsbl.com

Telephone 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

Particulars 2012-13 2013-14 Change%

1 Own funds 98.11 108.05 10.11%

Paid-up capital 25.12 29.10 15.84%
Reserves 73.01 78.95 8.14%
2 Aggregate deposits 884.31 973.71 10.11%
3 Aggregate advances 565.74 625.45 10.55%
4 Investment 321.56 363.58 13.02%
5 Net profit 7.06 6.39 -9.49%
6 CRAR 11.53% 11.91% 3.30%
7 Working capital 1002.43 1085.52 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 Pro-rata 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 Women-

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.
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).
 Goals-

Self-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' program-

Many 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 1991-2000, 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.
A 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.
Those with a per capita income not exceeding Rs. 250 per month.
Those having dry land holding not exceeding 2.5 acres.
II. 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 competition from similar products, limited knowledge, 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, 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 study the socio-economic background of respondents.

To examine the Pre-SHG and Post-SHG status of SHG members.
To study the impact of SHGs on the respondents.
To 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

Interpretation-

According 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 No. of groups Loan

disbursement
amount
1 Nandurbar 1 30000.00
2 Sawda 1 76000.00
3 Yawal 14 443500.00
4 Bodwad 22 906000.00
5 Chalisgaon 19 1278000.00
6 Jamner 11 1384000.00
7 Amalner 80 671500.00
8 Bhusawal 179 11056000.00
9 Jalgaon 250 181156300.00
Total 577 34001300.00

loan disbursement

1-nandurbar

1-sawda

14-yawal

22-bodwad

19-chalisgaon

11-jamner

80-amalner

179-bhusawal

250-jalgaon
 Interpretation-

The 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

Interpretation-

On 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.
Analysis 4- Case studies

Sr. no. Factors to be Very good Good Unsatisfactory

checked
1 Group size 15-20 10-15 Less than 10
2 Type of Only very poor 2 or 3 not very Many not very
members member poor members poor member
3 Number of 4 times in a 2 times in a Less than 2
member month month times in a
month
4 Attendance of More than 90% 70 to 90% Less than 70%
members
5 Participation of On a Very high Medium level Low level
members level
6 Savings 4 times 3 times Less than 3
collection within times
the group
7 Amount to be Fixed amount Varying amount
saved`
8 interest on Depending upon 24 to 36% More than 36%
internal loan the purpose
9 Utilization ofFully used for Partly used for Poor utilization
savings by SHGs loaning the loaning
members
10 Loan recoveries More than 90% 70% to 90% Less than 70%
11 Maintenance of All books are Most important Irregular in
books regularly registers are maintaining
maintained updated books
12 Accumulated More than Rs.3000-5000/- Less than 3000/-
savings 5000/-
13 Knowledge of Known to all Known to some not known to
the rule of anyone
SHGs
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

 About-

The 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 of-

1. 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.

Interpretation-

Consists 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

 About-

As 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.

Interpretation-

Rural 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

 About-

This 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

Interpretation-

This 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 empowerment of these women
2) 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 :

Men : _____

Women : _____

Total : _____

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?
Comments :
Yes : ____ No : ____
__________________________
2. Has the group undergone the full training syllabus with minimum 80% attendance in each
session?
Comments :
Yes : ____ No : ____
__________________________
3. Is the group following its rules and regulations properly, with sanction and control
mechanisms?
Comments :
Yes : ____ No : ____
__________________________
4. Is the group following collective decision-making processes?
Comments :
Yes : ____ No : ____
__________________________
5. Does the group have a clear vision and plans for the future?
Comments :
Yes : ____ No : ____
__________________________
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