Performance of SGSY-SHGs Linked to RRBs in Karnataka

The study examined the performance of fifty SGSY-SHGs linked to RRBs in the state of Karnataka and financed for Income Generating Activities prior to 2007.It was found that the SHGs of the study sample performed very satisfactorily on twenty performance indicators, and they scored around 75 marks out of maximum 100 marks. However, a large proportion of the SHG members were found ignorant about the amount of loan, rate of interest, quantum of subsidy, mode of subsidy delivery and terms of loan repayment. The study also revealed that the maturity level of the group and size of the bank credit availed by the group was positively and significantly co-related. In the study area, most of the immature SHGs were not reckoned by the banks as serious micro-credit clients and the SHGbank linkage process was not pursued seriously. There is a need for capacity building of all stakeholders involved in the SHG movement of the state to convert it into Micro enterprise movement.