SHG as an instrument for financial inclusion

The SHG � Bank linkage program has been established as an effective tool for inclusive by extending various financial services to the hitherto excluded category of poor rural households. Self-help groups (SHGs) can act as an empowering resource center for the women members, percolate the benefits to the society in universal. The concept of self-help groups was envisioned with the intent of using its potent as a powerful tool for rural poverty alleviation through rural women empowerment. This article brings that true women empowerment takes place when women confront the existing norms and culture, to effectively improve their livelihood. To strictly recognize the intricacy of women empowerment and its diverse aspects, one has first to look at the surviving definitions of the concept, at how it was considered and at the conclusions taken with regards to microfinance. Micro finance institutions offer plenty of services to the self-help groups and its members. This study envisages on the role of self-help group and micro finance in women empowerment. The sample has been collected from the 100 respondents in Chamarajanagar districts. The simple random sampling method had been administered to select the sample from the sampling area. In India, it is too difficult to find a financial institution to meet such requirements. To meet the emergency needs the Self Help Groups (SHG) developed. Members of the SHGs started savings as the prime work and this savings of the members opened the way for different income generating activities. In no time SHGs boom in the development sector as a major tool for bringing economic development of the poor people particularly among the women folk