Objectives: To investigate progress of SHGs through banking linkages in India and Odisha and to examine the impact of SHGs on women entrepreneurship development and their saving habit.
Methods/Statistical Analysis: Multi stage random sampling technique has been incorporated in the study to arrive at Nuasantha Gram Panchayat (GP) of Puri district of Odisha. Out of ten SHGs prevailed in the Panchayat, two SHGs have been chosen outthrough simple random technique. Data has been collected from the members of SHGs and used multiple regression analysis and descriptive statistic such as percentage, average, and pi-chart for interpretation.
Findings: The study reveals that in macro scenario growth of SHGs is quite uneven and growth in India is comparatively higher than growth in Odisha. It also concludes that amount of loan disbursed to SHGs from regional rural banks is increasing over the years while public sector banks also have remarkable contribution in this field. It makes a sense that SHG acts as an instrument for financial inclusion by which 40% of members have opened their own bank account after joining to it. The study reveals that major portion of loan (80%) received by the SHG members is used for repaying old debt & business purposes. There have a significant impact of own income on its own savings by 46% which depicts that government should put hand in hand with the bank and the society to mitigate under participation of women in the remote section.
Application: The study has its social and economic implication by addressing importance of SHGs in development of women in productive participation and financial contribution in the family.