Micro credit management in women SHGS – A study with reference to Nagai district, Tamil Nadu

Poverty and unemployment are the major problems of under developed countries, to which India is no exception. Microfinance is a provision of thrift, credit and other financial services and products of very small amounts provided to the poor in rural areas, semi urban areas and urban areas. The important components of microfinance are Micro – savings, Micro – credit and Micro – Insurance. It is the extension of very small loans (micro loans) to the unemployed, to poor entrepreneurs and to others living in poverty. SHG is a media for the development of saving habit among the women. SHGs are a tool to promote rural savings and gain full employment. By keeping these in mind an attempt is made in this study to study how the SHG's members manage their micro credit loans in the study area. Objectives of the study are to Study the nature and size of loan availed by the sample SHG's Members and its utilization and to study the sources of repayment of loan. The study has been concluded that Micro finance programme has a significant role to play in Indian economy for boosting Women Self Help Group activities for creating productive assets coupled with employment generation.