Self Help Groups and Asset Creation- A study of 14 Shgs In Nalbari District, Assam

Abstract

In the recent phase micro finance is seen as an alternative instrument, to the state, to provide credit to the poor and as a substitute to the exploiting. · Money lender in the village economy. In addition to being an instrument of credit delivery to rural households, this is also seen as an instrument to alleviate poverty of the rural households. This paper, an empirical study of 14 SHGs in Nalbari District, Assam, assumes that if this program is providing income generating asset to the members; it is surely contributing towards poverty eradication. The study reveals that most of the SHGs made group investment in income generating assets, did it with the motive to have subsidized credit from the government. This led to the failure of these activities. Again, in case of individual members most of them took loans mainly for consumption purposes. Although there are some capital investments too these were not of the kind that can take them above the poverty line.