SELF HELP GROUPS AND WOMEN EMPOWERMENT IN ANDAMAN ISLANDS

Abstract

Micro credit has emerged  as a visible credit channel to the poor  as their access to conventional credit channels is constrained by the requirement of collateral and high transaction cost. Micro credit is to manage their own finances and then negotiate bank credit on commercial terms. SHGs are considered as one of the most significant tools  to adopt participatory approach for the economic empowerment of the women. SHGs helps members to imbibe the essentials of the financial intermediation including prioritisation of needs, setting norms and conditions and in keeping accounts. This process also develops financial discipline as the money involved in the lending operations is their own money saved over time with great hardships. The aim of the programme is to ensure flexibility on structure and operational guidelines, creation of awareness prior to provision of credit ,make conscious effort at group formation and affect economic empowerment through group and individual efforts. Thus, bank  linked credit delivery mode helps to attain the objectives of economic planning. namely, economic and social development of women and eventually empowering them.(Tankha,2002).