Micro-Finance through SHGs in the Reduction of Vulnerability of Women

The purpose of the present study is to improve understanding of the impact of micro finance services
on selected non-income dimensions of poverty, specifically those related to risk, vulnerability, and
assets. The study emphasizes the role of financial, physical, human, and social assets in reducing
vulnerability by helping individuals and households protect against risks ahead of time and manage
economic losses afterwards. The present study is about the role of micro credit through self-help
groups to reduce the incidence of vulnerability of rural women. The issue of reduction of vulnerability
and poverty through micro finance organized by the self–help groups has been discussed widely in the
literature on development economics, and in our study, we analyze this role with reference to the case
studies in the district of South 24 Paragana and Coochbehar in the state of West Bengal and district of
Jalandhar and Patiala in the state of Punjab. To basis of objective of study is to improve understanding
of the impact of micro finance services and to review the progress of microfinance programme with
focus on quality of SHGs formed/promoted and on selected non-income dimensions of poverty,
specifically those related to risk, vulnerability of consumption, income and assets. In our sample
survey we have taken into consideration 2 blocks each in the selected 4 districts . two districts are
selected from West Bengal and two from Punjab. In each block 32 SHGs were selected and from each
SHG 10 members were selected and interviewed and a total of 2560 members were. The review of
earlier study done on the subjected were taken to understand the research gap in our area of research. The
main recommendation of the study is that all the families belong to landless, small and
marginalised farmers, SCs and ST and all other disadvantaged Sections of Society should be
mobilised in forming SHGs. The findings will be discussed in full length paper.