THE LACK OF KNOWLEDGE ABOUT LOANS CONTRIBUTES GREATLY TOWARDS THE DIFFICULTIES FACED BY THE WOMEN SHG RESPONDENTS IN GETTING LOANS – A STUDY AT CHITRADURGA DISTRICT OF KARNATAKA STATE

Abstract

        The problems of poverty alleviation and development of under privileged were addressed mainly through the Self- Help Group (SHGs). The concept of SHGs linked with women empowerment has its birth in Bangladesh.  The modern women SHG activities had been advocated by Prof. Mohammed Younus, father of modern microfinance. Prof. Younus successfully experimented the model during the building of post-independence   Bangladesh. The women informal groups proved a better utilizer and repayors of funds provided by Prof. Younus. The success of his experiments led to the formation of the Grameen Bank concept of modern microfinance. The Grameen Bank founded by Prof. Younus, gave the world a new dimension of informal finance. The possibilities of lending to otherwise unbanked poor sections were covered through Grameen Bank model of financing. The efficiency in repayment and better management of funds acted in favor of this model. The formal financial sector used to shy away from the unbanked poor as they were not able to offer any collaterals for the loans availed by them. The advent of Grameen Bank model of lending improved the image of collection and utilization and efficient payback of fund by the unbanked poor.