A Study of SHG-Microfinance Initiative in Purbo Midnapore District of West Bengal

Providing easy finance and micro credit has always been the primary objective of Micro Finance Linkages. Micro finance in the form of SHG Linkage model has been able to inspire hope in the lives of thousands of rural people, women in particular and enable them to contribute to their families well being through savings and borrowings. Microfinance influences the quality of life and is considered a powerful tool for positive socio economic changes in modern society. It is well known to us that West Bengal is one of the important states in the Eastern Region in respect of SHG-Bank linkage programme. During 2009–10, the number of SHG formed in W.B. under SGSY scheme was 35123, which are second highest among all the states of India. Further, the erstwhile district of Midnapore was divided into Purbo Midnapore and Paschim Midnapore on 1st January 2002. The present study is a modest attempt to analyze the performance of microfinance activities and to explain the socio-economic impact of microfinance on the SHG members of Purba Midnapore District based on primary data collected from two villages taking from two different blocks. The objective of the study is to identify and assess the socio economic condition of the member beneficiaries during pre and post SHG situation and to examine the utilization of microfinance services provided by the SHGs on income and employment levels of the beneficiaries. The study was conducted by canvassing structured questionnaire to 88 sample households taken from 20 SHGs through random sampling method and results are interpreted by tabular analysis. The study identified the remarkable improvement in the income level and employment generation by the member beneficiaries and found significant increase in savings of the member households. At the end, the study highlighted the issues concerning the functioning of SHG groups.