Effectiveness of Micro Finance Schemes Among Self Help Groups in Krishnagiri District

  • Murugesan R a Head, Department of Management Studies, Sri Vidya Mandir Arts & Science college, Uthangarai, Tamil Nadu, India.
  • Leelavathi M Research Scholar, Department of Management Studies, Sri Vidya Mandir Arts & Science College, Uthangarai, Tamil Nadu, India.
Keywords: Micro Finance, Krishnagiri, financial services


Microfinance has been promoted as an effective means of poverty reduction. Assuming that 80 percent of the world's population is without access to credit and
savings facilities beyond that provided by family members, friends, or money lenders. Microfinance services are provided by banks, credit unions, and Microfinance organizations. These are generally for-profit and non-profit or non-governmental organizations (NGOs), private voluntary organizations legally chartered, where necessary, to lend money to poor people. Microfinance movement was influenced by women’s movement, and is an integral part of the community economic development programmes. Microfinance interventions (MFIs) are expected to increase incomes, contribute to individual and household livelihood security, and change social relations for the better. SHGs play an important role in rural area in reducing poverty. There are more than 50 + SHGs in Krishnagiri District enjoying the benefits of microfinance. SHGs assist the rural people in financial needs it is a type of banking service that ensure that unemployed a low –income level people get the better opportunity and they start their livelihoods by themselves. Though the main aim of microfinance or SHG concept is to empower women and uplift their economic status, there has been apprehensions on the performance of SHGs and discontent on the effectiveness of microfinance scheme implementation. Research reveals that certain steps are needed to improve the implementation of micro finance schemes to the SHGs in the district. This paper forms part of a research work undertaken by the authors on Consolidating Micro finance Activities in Krishnagiri District. It analyses the role of SHGs and the performance of Micro financing institutions to Self-help groups in the state. Secondary data were gathered to meet the objectives of the study. Based on the analysis of data, inferences were made on the stated objectives of the study. The status and constraints of consolidating micro financing activities have been presented in this paper