Role of self help groups (SHGs) in financial inclusion-A study of Anantnag district, Jammu and Kashmir

Microfinance has come to play a major role in many gender and development strategies because of its direct relationship to both poverty alleviation and to the empowerment of women. Women are the most crucial elements of the social fabric and are playing a pivotal role in the socio-economic scenario in Jammu and Kashmir. Microfinance programs among the SHGs in India have been promoted for their positive economic impact and the belief that they empower women. Microfinance is the provision of thrift, credit and other financial services and products of very small amounts to the poor for enabling them to raise their income levels and improve their living standards. It is now being considered as one of the most important and effective mechanisms for poverty alleviation. There is a positive effect of microfinance on the socio-economic environment in rural areas. Microfinance institutions can help the people who engage in small-scale firms based on agriculture, micro enterprises, animal rearing activities, handicraft making, floriculture, food processing and fisheries to spread out their business by offering them different kinds of small loans. Over the past few years, Microfinance, through the formation of Self Help Group (SHG), has proved to be an effective channel for disbursement of credit in rural areas. The sample of the study consists of 277 respondents, which were selected by Multistage Random Sampling Method. The major objectives of the study are: -1. To study the socio-economic conditions of members of Woman Self Help Groups of Anantnag District, Jammu and Kashmir. 2. To analyze the impact of microfinance on alleviating Rural Poverty at Anantnag District, Jammu and Kashmir. 3. To study the performance of Self Help Groups in providing microfinance services to the members of Anantnag District, Jammu and Kashmir. The study concluded that after joining the Self Help Groups, the women gained both social as well as economic empowerment in their lives. People join SHGs to meet their financial requirement because if they go to banks the rules and regulation is stringent and time-consuming whereas they get a loan here very easily. They are educated towards banking norms only after joining the group. The group also helped them in their personality development. They also arrange tours to various places and by this, it helped them to know about different places. It also helps them in understanding the group dynamic and their participation in social activities are improved after joining the group. Microfinance is appreciable in bringing confidence, courage, skill development and empowerment of women. Now, the Self Help Group members feel free to move with their groups and participate in various social welfare activities with good cooperation while interacting with the respondents.