Discriminant function analysis for self-help groups: A case study of Gujarat, India

Study was undertaken in Panchmahal district of Gujarat to analyse the progress and performance of the Self-Help Groups (SHGs) and to identify the factors discriminating women and men SHGs. Linear discriminant function analysis was used to find the variables discriminating between beneficiaries of female and male groups. There was a considerable growth in factors like number of loans, amount of loan disbursed and recovery performance between 2002 and 2006. Average number of loans disbursed was 5.82 per year per group whereas the average amount advanced was Rs. 9210. Overall recovery percentage was 93.36. The progress and performance of female SHGs was better than that of male SHGs. Main variables discriminating between beneficiaries of female and male groups were education, land holding, loan amount, institutional participation, extension contact and their respective contribution in discriminating the two groups were 48.36, 16.02, 17.00, 6.42 and 12.18 per cent respectively.