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Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 12

December 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 1

Self-help Group (SHGs) in Kolar Town of Karnataka: Case Study

Dr. Shankar Chatterjee1

; Dr. R. Chinnadurai2

; Dr. Aruna Jayamani3

1

Professor & Head (CPME), NIRD & PR, Hyderabad-50030, email: <shankarjagu@gmail.com>

2

Associate Professor(CDP), NIRD & PR, Hyderabad-50030, email: <chinnadurai.nird@gov.in>

3Assistant Professor(CPME), NIRD & PR, Hyderabad-50030, , email: <raruna2008@gmail.com>

Abstract:

This article is based on field study

carried out in Kolar town of Karnataka by

contacting Self-help Group (SHGs)

members. Usually, we know SHGs are

function in rural areas but here the cases

belong to urban SHGs. It was reported that

good number of SHGs have been

functioning in Kolar urban areas, promoted

by Kolar Municipality and out of these,

three SHGs formed in early 2000 were

contacted in November 2016 by contacting

the SHGs as these are sustainable

indicating last 14/15 years they have been

functioning and earning income. The study

is based on primary survey. Of the three

SHGs functioning with women members,

one is exclusively by Muslim women of 20

members. Such model may be replicated in

other parts of the country particularly in

urban fringe. Further, few important

particulars of Kolar district are presented

here for the benefit of readers.

Key Words: Income, Kolar town,

Karnataka and SHG.

In India, normally Self Help Groups have

been functioning in rural areas across the

country. Accordingly many studies have

been conducted-large or small. But in

Kolar district, of Karnataka self-help

groups (SHGs) have been formed in urban

areas which are unique in nature. . It was

reported that good number of SHGs have

been functioning in Kolar urban areas,

promoted by Kolar Municipality. These

SHGs did not get subsidy –whether interest

subsidy or capital subsidy - but provided

with bank loan. It is pertinent to mention

that greatest advantage of forming SHG is

that through the thrift, money can be rolled

as credit and thus micro-credit enhances

economic development. In this context

Prof. Muhammad Yunus may be quoted,

“If the goals of economic development

include improved standards of living,

removal of poverty, access to dignified

employment and reduction in inequality

then it is quite natural to start with women.

Page 2 of 7

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 12

December 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 2

They constitute the majority of the poor, the

under-employed and the economically and

socially disadvantaged. And since they

were closer to the children, women were

also our key to the future of Bangladesh.

Studies undertaken by Grameen, comparing

how male borrowers use their loans versus

female borrowers, consistently confirm this

analysis. So gradually we focus almost

exclusively on lending to women. This was

not easy. The first and most formidable

opposition came from the husbands. Next to

the mullahs. Then the professional people,

and even government officials.” He further

feels that “Our repayment rate has remained

high all along. Generally, it is our success

with repayment that most people find

unbelievable. In Bangladesh the richest

who borrow from the banks make it a habit

not to pay back. I am always amazed by the

mockery that goes on in the name of

banking. Public deposits go through the

banking system, through the government

banks, through private banks, to people

who will never pay back the money”.

According to him, “There is no reason for

religious or cultural wars if the poorest can,

through their own self-help, their own

micro-capital, develop and become

independent, active thinking and creative

human beings”. In connection with the

micro-credit his view is that “Micro-credit

may not be a cure-all, but it is a force for

change, not only economic and personal,

but also social and political” (Muhammad

Yunus, 2007).

Few important particulars of Kolar district

are presented here to get an idea about the

socio-economic situation about the district.

Table – 1: Kolar district at a glance pertaining to urban areas

Sl.

No.

Item Issues

1. Population

a) Urban 480073

b) Total 1536401

2. Geographical area (in hectare) (2014-15) 374916

3. Sex ratio (2011)

a) Urban 973

b) Total 979

4. % of SC population to total population (2011)

a) Urban 28.84

b) Total 30.32

5. % of ST population to total population (2011)

a) Urban 1.40

b) Total 5.13

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Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 12

December 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 3

6. Per capita income of the district’s population (in Rs.)

(at constant prices in 2004-05) 2014-15

35664

9. BPL card holders (no)

a) Urban 4600

b) Total 28164

10. Normal Rainfall 724 mm

In 2014 Rainfall 500 mm

11. City Municipal corporation 03

12. Town Municipal Corporation 03

13. Total 06

Source: www.kolar.nic.in (Dt. 23.11.2016)

Although points in the table are self- explanatory, however few important points

as observed from the table are:

 Sex ratio in urban areas is less than

the district average.

 In recent years district has been

getting less rainfall.

 The SC & ST populations are less in

urban areas indicating they stay in

rural regions.

 BPL card holders are less urban

areas indicating BPL households

are more in rural zones.

It has to be admitted that through

formation and sustainable development of

SHGs, women can be empowered. The

SHG Movement worldwide aimed at

systematically empowering marginalized

women by way of their enhancing income

and capacity building. Mahatma Gandhi

once told “One step for women ten steps for

nation”. The various studies different

authors including the authors of this article

have evinced that earning of women is

spent for welfare of the family like for good

food, clothes, school stationery items etc.

And because of SHG movement many

women members have been elected in the

Panchayats. The debate on women’s

political rights are the forefront of many

formal and informal campaigns. This

concept appears to be the outcome of

several important critiques and debates and

because of economic development. The

economic empowerment requires

transferred of skills of management and

control of the economic activities, which

enable them to feel confident and being

involved in the decision making process. In

real sense, empowerment would be attained

when women are actively involved in the

larger struggle for social change. And with

the formation of SHGs, women have been

taking keen interest in controlling of dowry,

child marriage, child labour, even

controlling of liquor and tobacco etc. There

are cases across the country studied and