IMPACT OF INSTITUTIONAL CREDIT ON THE DEVELOPMENT OF WOMEN THROUGH SELF HELP GROUP IN KANYAKUMARI DISTRICT

Abstract

The study investigates the impact of institutional credit on the development of women through Self Help Groups (SHGs) in the Kanyakumari district of Tamil Nadu. SHGs have emerged as a key strategy for women's empowerment in rural India, enabling members to access institutional credit, promote savings, and undertake income-generating activities. The research aims to analyze the socio-economic conditions of SHG members, assess their level of satisfaction with institutional credit, identify problems faced, and evaluate factors influencing their decision to join SHGs. Primary data were collected from 300 SHG members using a structured questionnaire and analyzed using descriptive and inferential statistical tools, including percentages, mean, standard deviation, t-test, F-test, and Friedman Rank Test. The findings reveal that most respondents belong to low-income groups and are motivated to join SHGs primarily to access low-interest loans and develop saving habits. Education of children, repayment of existing loans, and meeting household expenses emerged as the key purposes for availing credit. Statistical analysis showed significant associations between socio-economic profiles and challenges like loan delays, group conflicts, and financial burden. Satisfaction levels indicate a generally positive response toward institutional credit mechanisms, although concerns remain about record-keeping practices. The study concludes that institutional credit significantly contributes to women’s development when supported by awareness, proper utilization, and group cohesion, and suggests targeted policy and institutional measures to enhance SHG effectiveness in empowering rural women.