A Study on Role of SHG in Financial Inclusion and Poverty Eradication-With Reference to Mepayyur Village, Calicut District, Kerala

Poverty is a contaminated and dangerous disease which is spread in every socio - economic zone in India .Poverty is mostly rampant in rural as well as in urban areas. Rapid urbanization is the main culprit of creating poverty. The Indian governments have come up with many strategies in eradicating this dangerous disease. One of the strategies created is to attain hundered percent fiancial inclusion. One of the steps to acheive financial inclusion is the formation of Self Help Groups. Self Help Group Bank Linkage Program is sponsored by NABARD (National Bank of Agriculture and Rural development). It is a successful model striving towards upliftment of poor. Individuals, mainly women with homogenous social and economic backgrounds, voluntarily join together and form a group. They mutually agree to contribute to a common fund and float a small business. These people who pool their resources save small sums of money. They convert their savings into a common fund known as the Group Corpus to be used through a common management scheme. The formation of SHGs have benefited its members (mainly women), in numerous ways, not only by eradicating poverty but also empowering the women folk.