SUFFiciENcy EcONOMy ANd GRASSROOtS DEvElOPMENt

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