In the context of modern social and development constructs, credit means an opportunity for betterment, an access to new resources, and freedom from non-institutional credit channels. The problem of credit for the poor is both a demand side and a supp...
In the context of modern social and development constructs, credit means an opportunity for betterment, an access to new resources, and freedom from non-institutional credit channels. The problem of credit for the poor is both a demand side and a supply side problem. Another point of concern is that women have consciously and deliberately been marginalized in the formal credit delivery system. Micro-credit or micro-finance for the poor/women has received extensive recognition as a strategy for poverty reduction and for economic empowerment. One of the purposes of micro finance as well as self-help groups is to target households and the household economy to reduce the economic insecurity of poor, not by raising their income but by protecting what little
they have and reducing their vulnerability. Literature review shows that on the one hand, there are tall claims about the role of SHGs and micro credit in the process of empowerment and holistic development while on the other hand, there are equal number of evidences to prove otherwise. The present paper based on a study of self-help groups in Ujjain district of the state of Madhya Pradesh of India evaluates the impact of Self-Help Groups
and micro credit in the context of certain correlates of economic and social empowerment. It is reflected in the findings of the study that with adequate interventions and support extended by the Self Help Promoting Institution or the facilitator, these groups or collectives can surely emerge as potential tools for channeling micro credit from banks or Micro Finance Institutions for the economic betterment of the poor and at the same time address gender issues also.