Social Mobilisation, Savings Habit and Access to Credit for the Poor through SHGs in Odisha

Abstract

The study examines the extent of social mobilisation and access to financial services to the poor through Self-Help Groups (SHGs) in Odisha. The study covered a total of 15,339 SHGs in Ganjam, Gajapati and Puri districts of Odisha. It reveals that SHG movement in the State has gained momentum with the introduction of the Mission Shakti programme. A large number of SHGs have been formed in the study districts by mobilisation of women belonging to Below Poverty Line (BPL) households. SHGs were instrumental in developing savings habit and gaining access to credit from formal financial institutions. However, the extent of savings and credit is still at very low level. The study concludes that in order to make the movement a sustainable impact on its members the SHGs in the State require handholding support to strengthen their internal system and make them selfsustainable.