Relative Strength of the SHGs among Districts
The development of the microfinance sector through the SHG model reflects the relative importance of this movement for the population, as depicted in Figure 2. It shows a map indicating the relative strength of the households involved in a SHG provided with a bank loan during the financial year 2005-2006. The inequality pattern in the microfinance sector in India is also verifiable at the district level.
Figure 2: District distribution in relative share of SHGs (measured by natural break – percentage)
During this financial year, the relative share of SHGs was more than 35 % of the total households in Nuaparha district (Orissa). In other words, more than one third of the total households in this district counted a person involved in a SHG provided with a bank loan during the last year.
The level of market penetration of SHGs is no longer incidental and exceeded 20 % of the household population for the districts of Dhenkanal, Deogarh, Kalanhandi and Malkangiri, all in the state of Orissa.