Women empowerment through microfinance in Dindigul district of Tamil Nadu – An economic analysis
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Date
2006
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UAS, Dharwad
Abstract
This study was undertaken to assess the empowerment of women through
microfinance. The study was conducted in Kodaikanal taluk of Dindigul district. From the
taluk, Six villages were selected based on highest number of SHGs. From each of the selected
villages, five groups were selected based on income generating activity. And from each of the
groups three members were selected. Thus a total of 90 members from 30 groups formed the
sample size. To assess the impact of SHGs on the women empowerment paired t-test, impact
index and multiple linear regression analysis were done.
Findings of the study revealed that majority of the members were middle aged,
married, educated from nuclear family belonging to backward class. The average amount of
loan from SHG since inception was Rs.1972.20 per member and from bank was Rs.14,517
per member and savings per year was Rs.1,332.40 per member. The major factor motivating
the members to joining SHG was NGOs intervention. About 93.34% of the groups belonged
to model-I which were formed by NGOs and linked to banks. A number of income generating
activities were undertaken by the SHGs.
The percentage change in income (45.99%), investment (20.09%), assets (53.43%),
consumption (25.85%), employment days (112.48%) and savings (264.70%) of the members
after joining the SHG was calculated. The t-value calculated for the above were found to be
significant and assets at 1% level. Investment, savings employment and assets were the major
factors influencing the income level of the SHG members. The R² value was 0.84 which
indicated that explanatory variables explained 84% of variation in income generation of the
members. The gain index of social empowerment was 30.61 and economic empowerment
was 39.09. Majority of members (84.44%) opined that banks/NGO made it easy to get loan
collectively and SHGs charged lower interest rate with timely credit.