Problems of Self Help Groups in Microfinance

The present study attempts to analyse the problems faced by Self Help Groups (SHGs) in microfinance schemes in selected districts of Haryana. Primary data have been collected through pre-tested structured questionnaire. For the purpose of data collection, a sample of 200 (SHGs) is taken from four districts of the state Sirsa (50), Kaithal (50), Rohtak (50) and Gurgaon (50) of Haryana on the basis of judgment sampling. The collected data were analyzed with the help of Kruskal Wallis H-Test and ranking method. The findings indicate that the problems faced by (SHGs) in selected districts are lack of awareness about financial literacy, non-availability of timely help from the banks, lack of proper guidance and support from supporting agencies, lack of proper marketing facility, difficulties in running the group, difficulties in the defining the activities of the group, pressure from family members to give loan to them and lack of training facilities, etc. Statistically, the results of Kruskal Wallis H-test show that there is a significant difference in the viewpoint of (SHGs) towards absence of proper account keeping in (SHGs), therefore null hypothesis is rejected. On the basis of study, it is suggested that the government should organize workshops and seminars for awareness about financial literacy and training programs to improve the quality of product and services. The banks and other supporting agencies should provide proper guidance and support for the smooth running of the group.