SUFFiciENcy EcONOMy ANd GRASSROOtS DEvElOPMENt
SUFFiciENcy EcONOMy ANd GRASSROOtS DEvElOPMENt
SUFFiciENcy EcONOMy ANd GRASSROOtS DEvElOPMENt
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The Meaning of Sufficiency Economy <br />
International Conference<br />
291<br />
Number of Times Borrowed<br />
One of the yardsticks for the measurement of success/ failure of credit schemes<br />
is the booster or supplementary loan assistance sanctioned and disbursed by the<br />
SHGs on the satisfactory performance of the borrowers in respect of earlier loans.<br />
The group repeats loan assistance only to those borrowers who use the loan amount<br />
for the prescribed purpose and repay the installment in time and submit acceptable<br />
proposal for further loans. In a village called Annur, H.D.Kote Taluk, 8 members of<br />
the group promoted by MYRADA have got loan consecutively for 5 times and they<br />
have promptly repaid it. In a village called Doddakoppalu, K.R.Nagar Taluk, 60%<br />
of the members of group promoted by PRAGATHI have got loan 8 to 10 times. <br />
The credit cycle trains the group in the management of a financial system. It<br />
forces them to establish group norms for lending, repayment and trains the group to<br />
take decision where choices have to be made on who should get priority in credit. As<br />
personal stake is higher due to ownership of funds, it brings into the system a greater<br />
sense of diligence and accountability. Both group pressure and ownership of funds<br />
are the reasons for a strong repayment culture.<br />
During the the year year 2009-10, out of of 401 401 respondents, 226 women (56.36%)<br />
obtained loan for income generating purpose and the rest 175 obtained loan for<br />
obtained<br />
consumption<br />
loan<br />
and<br />
for<br />
other<br />
income<br />
unproductive<br />
generating<br />
purposes.<br />
purpose and the rest 175 obtained loan for<br />
consumption and other unproductive purposes.<br />
Table – 5 Purpose of Loan<br />
Production Consumption <br />
Sl. No.<br />
Particulars Table – 5<br />
Total<br />
purpose purpose<br />
Purpose of Loan<br />
1. SHGs –NGOs of H.D.Kote Taluk 68 32 100<br />
Sl.<br />
Production Consumption<br />
Particulars<br />
Total<br />
No. 2. SHGs – NGOs of K.R.Nagar Taluk purpose 53 purpose 42 95<br />
1. SHGs –NGOs of H.D.Kote Taluk 68 32 100<br />
2. 3. SHGs SHGs – –NGOs of K.R.Nagar Mysore Taluk Taluk 105 53 101 42 206 95<br />
3. SHGs –NGOs of Mysore Taluk 105<br />
226 <br />
101<br />
175 <br />
206<br />
401<br />
Total<br />
(56.36)<br />
226<br />
(43.64)<br />
175<br />
(100.00)<br />
401<br />
Total<br />
(56.36) (43.64) (100.00)<br />
Source: Field Survey.<br />
<br />
Consumption purpose<br />
44%<br />
Production purpose<br />
56%<br />
It is observed that the poor members of groups under study have benefited<br />
more in terms of improvement in asset, loans for meeting emergency needs etc.<br />
Members of ‘non poor’ category have realized benefits more in terms of improvement<br />
in asset followed by redemption of debt and other purposes.