ROLE OF SELF HELP GROUPS (SHGs) IN FINANCIAL INCLUSION-A STUDY OF ANANTNAG DISTRICT, JAMMU AND KASHMIR

Abstract

Microfinance has come to play a major role in many gender and development strategies because of its direct relationship to both poverty alleviation and to the empowerment of women. Women are the most crucial elements of the social fabric and are playing a pivotal role in the socio-economic scenario in Jammu and Kashmir. Microfinance programs among the SHGs in India have been promoted for their positive economic impact and the belief that they empower women. Microfinance is the provision of thrift, credit and other financial services and products of very small amounts to the poor for enabling them to raise their income levels and improve their living standards. It is now being considered as one of the most important and effective mechanisms for poverty alleviation. There is a positive effect of microfinance on the socio-economic environment in rural areas. Microfinance institutions can help the people who engage in small-scale firms based on agriculture, micro enterprises, animal rearing activities, handicraft making, floriculture, food processing and fisheries to spread out their business by offering them different kinds of small loans.