MICROFINANCE AND WOMEN EMPOWERMENT IN THE CONTEXT OF SELF-HELP GROUPS IN AIZAWL DISTRICT A thesis submitted to the Department of Economics, Mizoram University for the award of the Degree of Doctor of Philosophy Submitted by K. Angela Lalhmingsangi DEPARTMENT OF ECONOMICS SCHOOL OF ECONOMICS, MANAGEMENT, AND INFORMATION SCIENCES MIZORAM UNIVERSITY AIZAWL, MIZORAM 2015 Prof.Lianzela Department of Economics Mizoram University Tanhril, Aizawl‐796009 0389‐2330709 (0), 09862324657 (M) CERTIFICATE This is to certify that the thesis entitled “Microfinance and Women Empowerment in the context of Self-Help Groups in Aizawl District” by Ms. K. Angela Lalhmingsangi was carried out under my supervision. She has fulfilled all the requirements laid down in the Ph.D regulations of the Mizoram University. The thesis is purely a result of investigation done by her in the subject. No part of the thesis was ever submitted to any other University/Institutions for any research degree prior to this date. (Prof. LIANZELA) Supervisor MIZORAM UNIVERSITY APRIL, 2015 DECLARATION I, K. Angela Lalhmingsangi, hereby declare that the subject matter of this thesis is the record of work done by me, that the contents of this thesis did not form basis of the award of any previous degree to me or to the best of my knowledge to anybody else, and that the thesis has not been submitted by me for any research degree in any other University/ Institute. This is being submitted to the Mizoram University for the degree of Doctor of Philosophy in Economics. (K. ANGELA LALHMINGSANGI) (Prof. VANLALCHHAWNNA) (Prof. LIANZELA) Head of Department Supervisor i ACKNOWLEDGEMENTS I would like to acknowledge the help and support of those kind people around me who are instrumental in the completion of this doctoral thesis. My sincere gratitude goes to my Supervisor, Prof. Lianzela for his guidance and patience throughout the process of writing this thesis. I would like to thank Prof. Pravakar Rath (Dean,SEMIS), Prof. Vanlalchhawna (Head, Department of Economics), Prof. T.C. Nunga for their encouragement and especially Dr. Lalhriatpuii (Assistant Professor) and Dr. James L.T. Thanga (Assistant Professor) for their insightful perspectives and suggestions on the subject. I am most grateful to my parents and family for their unequivocal support and undying faith in me throughout the challenging period of writing this thesis. I also express my gratitude to friends and colleague for their encouragement and support which were much needed for the completion of this thesis. I would like to express my profound gratitude to Mrs. Hmingduhawmi for her kind assistance during the gruesome process of data collection and I would like to especially acknowledge and express my deepest gratitude to Mr. Zothansanga Hmar, without whose assistance, the completion of this thesis would be impossible. I would like to thank the staff and officials of NERLP implementing office (Aizawl), NABARD (Mizoram), SBI Lead Bank office (Mizoram) and various NGOs, for their assistance and for providing me with the data required for this thesis. I owe a great deal ii of gratitude to all the respondents who co-operated in filling the questionnaires and for their participation in the numerous discussions held. Last and most important, I thank the Almighty God for His countless blessings and guidance. For any errors or inadequacies that may remain in this work, the responsibility is entirely my own. Place : Aizawl (K. ANGELA LALHMINGSANGI) Date : Research Scholar iii LIST OF TABLES Table Page Name of Tables number number Table 2.1 Phases of Microfinance in India 28 Table 2.2 Overall progress under SHG-Bank Linkage for the last 3 years 34 (2011-12) to (2013-14) Table 2.3 North East (NE) Population distribution & literacy 51 Table 2.4 Poverty Ratios of North East States & all India - number and 52 Percentage of Population below Poverty line by States - 2009- 10 (Tendulkar Methodology) Table 2.5 State Specific Poverty Lines for 2009-10 53 Table 2.6 GSDP Growth Rates in NE States during successive Plan 53 periods Table 2.7 No. of Bank Branches and Population per Branch in NER 56 Table 2.8 Status of Credit Deposit Ratio in NER 56 Table 2.9 Progress under Microfinance - Savings of SHGs with Banks 59 Region-wise/ State-wise/ Agency-wise position as on 31 March 2014 Table 2.10 Regional share in linkage: SHG with outstanding loans 60 Table 2.11 Branch network in Mizoram, 2009-14 68 Table 2.12 Bank per Branch outreach as on 31.03.2013 69 Table 2.13 Agency break - up of amount of deposits, 2011-2014 in 70 Mizoram Table 2.14 Agency break- up of loans and advances outstanding 71 (2011-2014) in Mizoram Table 2.15 Agency break-up of CD ratio ,2011-2014 in Mizoram 72 Table 2.16 Trend in progress of SHG – bank linkages in the state 73 (Cumulative position) iv Table 2.17 Performance in SHG-bank linkage in different districts 75 Table 2.18 Participants in SHG – Bank linkages in the state (2006-2013) 76 (Cumulative position) Table 2.19 Status of implementation of the Farmer’s Club programme in 80 the state, as on 31 March 2011 Table 2.20 Status of JLG in Mizoram 81 Table 2.21 Coverage of women by bank credit (2012) 83 Table 3.1 Frequency distribution of Age of sample SHG members 87 Table 3.2 Frequency distribution of marital status of SHG members 87 Table 3.3 Frequency distribution of number of children of SHG members 88 Table 3.4 Frequency distribution of the family size of SHG members 89 Table 3.5 Frequency distribution of the literacy level of SHG members 89 Table 3.6 Frequency distribution of occupation of SHG members 90 Table 3.7 Frequency distribution of the status of earning members in the 91 family Table 3.8 Occupation of other earning member in the family 91 Table 3.9 Frequency distribution of housing type of SHG members 92 Table 3.10 Frequency distribution of ownership of residence of SHG 92 members Table 3.11 Frequency distribution of agricultural land holding of SHG 93 members Table 3.12 Frequency distribution of Reason for joining SHG by the 93 members Table 3.13 Frequency distribution of motivation to join SHG by the 94 members Table 3.14 Frequency distribution of membership duration of the SHG 95 members Table 3.15 Frequency distribution of change in the status of occupation of 96 SHG members after joining SHG Table 3.16 Frequency distribution of improvement in income generating 97 v activities of SHG members after joining group Table 3.17 Frequency distribution of Attendance of training programmes 97 by SHG members Table 3.18 Frequency distribution of type of training attended 98 by SHG members Table 3.19 Source of money for meeting emergency needs pre and post 99 participation in SHG Table 3.20 Frequency distribution on loan cycle of SHG members 100 Table 3.21 Frequency distribution of loan amount availed by SHG 101 members Table 3.22 Frequency distribution on use of loan by SHG members 102 Table 3.23 Frequency distribution of default in repayment of loan by 102 members Table 3.24 Reason for difficulties in repayment of loan by members 103 Table 3.25 Frequency distribution of status of personal bank account held 104 by the members Table 3.26 Holding of insurance products by SHG members 105 Table 3.27 Frequency distribution of satisfaction on loan size, timely 106 availability of loan, interest rate and frequency of repayment Table 3.28 Frequency distribution of satisfaction on attitude of bank 107 employees, financial transaction procedure and savings products Table 3.29 Frequency distribution on satisfaction on guidance by 108 SHPIs/NGOs, conduct of group meetings and relationship between group members Table 3.30 Frequency distribution of satisfaction on book keeping, 109 leadership training, financial management and health issues training Table 3.31 Frequency distribution of satisfaction on marketing skills, skills 110 formation and social awareness training vi Table 4.1 Frequency distribution of average personal monthly income of 116 SHG members Table 4.2 z-test on average monthly personal income of SHG members 117 Table 4.3 Frequency distribution of average household monthly income 118 of SHG members Table 4. 4 z-test on average monthly household income of SHG members 119 Table 4. 5 Frequency distribution of household monthly expenditure of 121 SHG members Table 4.6 z- test on monthly household expenditure of SHG members 122 Table 4.7 Frequency distribution of average household monthly savings 123 of SHG members Table 4.8 z –test on average household monthly savings of SHG 124 members Table 4.9 Frequency distribution of value of movable assets of SHG 125 members. Table 4.10 z- test on value of movable assets of SHG members 126 Table 4.11 Frequency distribution of control/ usage of income by SHG 127 members Table 4.12 z- test on control/ usage of income by SHG members 128 Table 4.13 Frequency distribution of training attended by SHG members 129 Table 4.14 Frequency distribution of number of training attended by SHG 130 members Table 4.15 Type of training attended by SHG members 131 Table 4.16 Skill development for economic empowerment of SHG 131 members Table 4.17 z- test on skill development for economic empowerment of 132 SHG members Table 4.18 Correlation between increase in household income and increase 133 in household expenditure Table 4.19 Correlation between increase in household income and increase 134 vii in household savings Table 4.20 Correlation between increase in household income and increase 135 in value of movable assets of members Table 4.21 Frequency distribution of number of working days of SHG 136