Does Micro-Credit Empower Women through Self-Help Groups? Evidence from Punjab, Northern India
Abstract
1. Introduction
‘To awaken people, it is the women who must be awakened. Once she is on the move, the family moves, the village moves, the nation moves’.—Pandit Jawaharlal Nehru [1]
2. Literature Review
2.1. Origin of Micro-Credit System in India
2.2. Women Empowerment through Micro-Credit
2.3. Women Empowerment and Self-Help Groups in the State of Punjab
2.4. Previous Studies
3. Methodology
- (1)
- socio-demographic characteristics of the respondents;
- (2)
- income, expenditure, savings, and borrowing pattern before and after joining SHGs/using micro credit;
- (3)
- financial freedom through micro credit programmes before and after joining SHGs; and,
- (4)
- capacity building and awareness levels before and after joining SHGs/using micro credit.
4. Data Analysis and Discussion
5. Conclusions
Author Contributions
Funding
Conflicts of Interest
References
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1 | |
2 | Rajya Sabha Unstarred Question No. 1008, dated on 9 August 2011 |
State | Saving of SHGs | Bank Loans Disbursement to SHGs | Bank Loans Outstanding Against SHGs | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Total SHGs | Women SHGs | Total SHGs | Women SHGs | Total SHGs | Women SHGs | |||||||
No. of SHGs | Saving Amount | No. of SHGs | Saving Amount | No. of SHGs | Loan Amount | No. of SHGs | Loan Amount | No. of SHGs | Loans O/s | No. of SHGs | Loans O/s | |
Punjab | 45,005 | 3645.10 | 38,673 | 3039.94 | 1790 | 1944.55 | 1229 | 1331.31 | 10,045 | 6708.38 | 5636 | 3654.28 |
India | 6,953,250 | 619,870.89 | 5,310,436 | 449,865.76 | 1,586,822 | 1,445,330.36 | 1,294,476 | 1,242,936.80 | 4,851,356 | 2,803,828.07 | 3,897,797 | 2,303,036 |
State | Rural | Urban | Combined | ||||||
---|---|---|---|---|---|---|---|---|---|
Without Hired Workers | With at Least One Hired Worker | Total | Without Hired Workers | With at Least One Hired Worker | Total | Without Hired Workers | With at Least One Hired Worker | Total | |
Punjab | 9 | 36 | 45 | 16 | 40 | 56 | 25 | 76 | 101 |
India | 140,400 | 16,381 | 156,781 | 27,875 | 4316 | 32,191 | 168,275 | 20,697 | 188,972 |
Demographic Characteristic(s) | Frequency (N = 14) | Percentage (%) | |
---|---|---|---|
Age (years) | Less than 25 | 15 | 13.2 |
25–34 | 32 | 28.1 | |
35–44 | 40 | 35.1 | |
45–54 | 20 | 17.5 | |
55–64 | 7 | 6.1 | |
More than 65 | - | - | |
Marital status | Single | 7 | 6.1 |
Married | 84 | 73.7 | |
Divorced | 10 | 8.8 | |
Widowed | 13 | 11.4 | |
Religion | Sikh | 67 | 58.8 |
Hindu | 44 | 38.6 | |
Muslim | 3 | 2.6 | |
Christian | - | - | |
Caste | Scheduled Castes (SC) | 7 | 6.1 |
Scheduled Tribes (ST) | 4 | 3.5 | |
Other Backward Classes (OBC) | 2 | 1.8 | |
General | 101 | 88.6 | |
Education | Illiterate | 26 | 22.8 |
Read only | - | - | |
Read & write | 44 | 38.6 | |
Primary school | 37 | 32.5 | |
High school & above | 7 | 6.1 | |
Family size | Below 4 | 42 | 36.8 |
5–6 | 67 | 58.8 | |
Any other | 5 | 4.4 | |
Size of landholding | Less than 1 acre | 36 | 31.6 |
1–2 acres | - | - | |
More than 2 acres | - | - | |
Landless | 78 | 68.4 | |
Type of Occupation | Farming/Agricultural labourers | 31 | 27.2 |
Non-agricultural labourer | 67 | 58.8 | |
Business & others | 16 | 14 | |
Annual income (US$ *) | Less than 156 US$ | - | - |
156 US$–391 US$ | 7 | 6.1 | |
391 US$–547 US$ | 87 | 76.3 | |
Above 547 US$ | 20 | 17.6 | |
Years in SHGs | Less than 5 years | 97 | 85.1 |
5–10 years | 17 | 14.9 | |
More than 10 years | - | - | |
Size of SHGs | Less than 20 members | 34 | 29.8 |
20–30 members | 74 | 64.9 | |
More than 30 members | 6 | 5.3 | |
Type of occupation conducting by SHGs | Cottage industry activity | - | - |
Selling handmade crafts | 81 | 71.1 | |
Food processing | 33 | 28.9 | |
Any other | - | - | |
Area of operation | Local | 46 | 40.4 |
Local and outside villages | 26 | 22.8 | |
In other nearby town | 42 | 36.8 |
Statements Rated | Before Joining SHGs | After Joining SHGs | t-Value | ||
---|---|---|---|---|---|
M | SD | M | SD | ||
Income, expenditure, savings, and borrowing pattern | |||||
Monthly income | 33 $ | 0.65 | 43 $ | 0.73 | 4.06 * |
‒ Farming/Agricultural laborer 󠄀 | 27 $ | 0.69 | 39 $ | 0.74 | 4.26 * |
‒ Non-Agricultural laborer | 39 $ | 0.66 | 47 $ | 0.69 | 3.64 * |
Monthly consumption/expenditure | 34 $ | 0.72 | 39 $ | 0.73 | 3.12 * |
Monthly saving amount | 7 $ | 0.66 | 16 $ | 0.89 | 4.96 * |
Monthly borrowings amount | 12 $ | 0.81 | 27 $ | 0.71 | 5.83 * |
Statements Rated | Before Joining SHGs | After Joining SHGs | t-Value | ||
---|---|---|---|---|---|
M | SD | M | SD | ||
‒ I lives within my income. | 2.63 | 0.83 | 3.5 | 0.86 | 2.76 * |
‒ I am confident that I will have enough money for my future needs. | 3.23 | 0.62 | 3.53 | 0.93 | 2.13 * |
‒ I have adequate financial reserves in case of an emergency. | 2.9 | 0.66 | 3.86 | 0.89 | 3.96 * |
‒ I know how much I spend each month/year, and on what. | 2.65 | 0.49 | 4.55 | 0.47 | 5.56 * |
‒ I have trusted financial advisors with whom I am comfortable. | 2.26 | 0.51 | 3.85 | 0.6 | 3.79 * |
‒ I am clear about what I am (and what I am not) willing to do for money. | 2.38 | 0.62 | 4.18 | 0.48 | 4.76 * |
‒ I save and/or invest for the future. | 2.21 | 0.48 | 3.89 | 0.67 | 3.29 * |
‒ I have a financial plan that takes into account both my money goals and my life goals. | 2.14 | 0.49 | 4.08 | 0.74 | 4.03 * |
‒ I am comfortable in discussion regarding money issues with the people closest to me. | 3.12 | 0.62 | 4.22 | 0.62 | 3.88 * |
‒ I have a clear vision about what I want to accomplish financially. | 2.21 | 0.75 | 3.86 | 0.6 | 4.23 * |
‒ I understand my investments, including the risks and potential returns. | 2.02 | 0.71 | 3.86 | 0.58 | 3.65 * |
‒ I am comfortable with my current level of debt. | 2.23 | 0.53 | 3.94 | 0.5 | 3.46 * |
‒ I know ‘how much is enough’ for me. | 2.4 | 0.65 | 4.02 | 0.5 | 4.12 * |
‒ When I spend money, it is for things that add value to my life. | 2.61 | 0.65 | 4.11 | 0.49 | 4.86 * |
‒ I have analyzed my future financial needs with the support of a professional advisor. | 1.87 | 0.67 | 3.53 | 0.51 | 5.26 * |
‒ I review and make adjustments to my investment portfolio regularly. | 2.26 | 0.58 | 3.74 | 0.53 | 3.50 * |
‒ I am comfortable with the level at which I support the family and relative who are important to me. | 2.4 | 0.6 | 4.12 | 0.51 | 3.86 * |
‒ I have a clear picture of my future financial needs (funding for aging time, healthcare costs, children education, marriage, etc.). | 1.96 | 0.81 | 3.35 | 0.61 | 3.74 * |
‒ I am clear on my values related to my money and my life. | 2.59 | 0.62 | 4.22 | 0.62 | 3.66 * |
Statements Rated | Before Joining SHGs | After Joining SHGs | t-Value | ||
---|---|---|---|---|---|
M | SD | M | SD | ||
Social issues | |||||
‒ Awareness about child labour practices | 2.83 | 0.83 | 4.08 | 0.45 | 3.00 * |
‒ Awareness about child marriage practices | 2.76 | 0.67 | 4 | 1.01 | 3.23 * |
‒ Awareness about domestic violence | 2.9 | 0.66 | 4.07 | 0.74 | 3.79 * |
‒ Awareness about social inequality | 3.02 | 0.62 | 4.28 | 0.55 | 4.73 * |
‒ Status in the family | 2.43 | 0.51 | 3.14 | 1.15 | 1.65 |
‒ Status in the local society | 2.14 | 0.73 | 3.2 | 1.04 | 2.76 * |
‒ Decision making in the family | 2.52 | 0.87 | 3.22 | 1.09 | 1.61 |
‒ Decision making in the group | 2.34 | 0.59 | 4.1 | 0.73 | 4.64 * |
Education issues | |||||
‒ Literacy skills/education | 1.56 | 0.96 | 4.01 | 0.87 | 5.83 * |
‒ Women education | 3.19 | 0.82 | 4.12 | 0.91 | 2.83 * |
‒ Awareness about children’s education | 3.02 | 0.74 | 4.25 | 0.56 | 4.27 * |
‒ Awareness about girl child’s education | 2.08 | 0.95 | 4.03 | 0.51 | 4.12 * |
Health issues | |||||
‒ Awareness about sanitation | 2.81 | 0.84 | 4.35 | 0.59 | 5.26 * |
‒ Awareness about personal hygiene | 3.04 | 0.89 | 4.3 | 0.51 | 4.96 * |
‒ Awareness about AIDS | 2.93 | 0.73 | 4.02 | 0.81 | 3.76 * |
‒ Awareness about Aarogyasri Health Care Trust | 3.17 | 0.9 | 4.1 | 0.51 | 3.65 * |
‒ Adoption of small family norms | 2.88 | 0.78 | 4.08 | 0.73 | 4.12 * |
Economic issues | |||||
‒ Ability to control over resources | 2.36 | 0.66 | 3.72 | 0.79 | 3.23 * |
‒ Creditworthiness | 2.8 | 0.95 | 3.98 | 0.95 | 3.88 * |
‒ Freedom from money lenders | 2.23 | 0.8 | 4.15 | 0.73 | 4.79 * |
‒ Banking habits | 2.1 | 0.62 | 4.05 | 0.96 | 5.26 * |
‒ Self-employment potential | 3.36 | 0.6 | 4.12 | 0.73 | 3.29 * |
‒ Communication skills | 2.08 | 0.57 | 3.88 | 0.71 | 4.03 * |
‒ Entrepreneurial skills | 2.12 | 0.94 | 3.82 | 0.76 | 3.39 * |
Political issues | |||||
‒ Access to information about government programmes | 1.88 | 0.74 | 4.02 | 0.72 | 5.63 * |
‒ Awareness on women’s rights | 2.05 | 0.84 | 4.1 | 0.54 | 5.26 * |
‒ Awareness of equal property rights for women | 2.28 | 0.54 | 3.8 | 0.71 | 3.02 * |
‒ Participation in development programmes | 2.12 | 0.8 | 3.96 | 0.73 | 3.66 * |
‒ Ability to meet and converse with government officials | 1.76 | 0.65 | 3.73 | 0.82 | 5.39 * |
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Esmaeil Zaei, M.; Kapil, P.; Pelekh, O.; Teimoury Nasab, A. Does Micro-Credit Empower Women through Self-Help Groups? Evidence from Punjab, Northern India. Societies 2018, 8, 48. https://doi.org/10.3390/soc8030048
Esmaeil Zaei M, Kapil P, Pelekh O, Teimoury Nasab A. Does Micro-Credit Empower Women through Self-Help Groups? Evidence from Punjab, Northern India. Societies. 2018; 8(3):48. https://doi.org/10.3390/soc8030048
Chicago/Turabian StyleEsmaeil Zaei, Mansour, Prachi Kapil, Olha Pelekh, and Azadeh Teimoury Nasab. 2018. "Does Micro-Credit Empower Women through Self-Help Groups? Evidence from Punjab, Northern India" Societies 8, no. 3: 48. https://doi.org/10.3390/soc8030048
APA StyleEsmaeil Zaei, M., Kapil, P., Pelekh, O., & Teimoury Nasab, A. (2018). Does Micro-Credit Empower Women through Self-Help Groups? Evidence from Punjab, Northern India. Societies, 8(3), 48. https://doi.org/10.3390/soc8030048