Abstract:
Self-Help Group (SHG) is homogeneous affinity groups with common objective of enhancing
their economic conditions. Theorists view SHG as the homogeneous group of poor village
people formed with at least five members. In reality, the SHG groups comprise of 12-20
members of nearly same economic conditions and aspirations. This is not based on strict rules,
even though rules are framed for the smooth conduct of SHG meetings and the routine money
regular. The credit is provided for both consumption and other productive purposes. SHG
members can leave a small amount of money collectively and they can lend, it as collateralfree loans to their members at a reasonable rate of interest. All decisions are taken in collective
manner by the SHG members. The Philosopher, Fahreet 1 states that the society has to be
formed into small groups and to be engaged in productive activities. The basic principles of
the SHGs are group approach, mutual trust, organization of small and manageable groups,
group cohesiveness, sprit of thrift, demand based lending, collateral free loan, women friendly,
peer group pressure in repayment, skill, training capacity building and empowerment. Rural
Development is doubtless the main pillar of India’s progress. It has lagged behind in many
aspects of development even after six decades of independence. Rural and urban India accounts
for 40 per cent and 23.62 per cent of people below the poverty line respectively. The rural
masses still depend on non-institutional credit agencies for their financial needs such as
marriage, illness, consumption, buying productive assets, etc. The objectives of the present
study are as follows (a) To evaluate the performance of the sample SHGs selected for the study
in in Valmalpalayam of Manachanallur Taluk, Tiruchirappalli district of Tamil Nadu (b) To
identify the income and expenditure pattern of the members of SHG.
