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Table 9.1: Tamil Nadu - Savings of the SHG member (monthly and sub-period)
Initial savings
Changed savings
Monthly rate Accumulated
amount
Monthly rate Accumulated
amount
Mean
125.78
5,640.79
293.40
7,770.91
Standard
deviation
58.29
5,475.78
146.24
8,408.40
Number of
observations
575
575
435
435
Note that initial savings and changed savings are spread across different sub-periods.
We find that in Tamil Nadu that on an average the changed savings amount has more
than doubled over a period of 4 to 7 years. Accumulated amounts too have increased
(Table 9.1). Our probing revealed that most SHGs in TN decided to increase the
mandated monthly rate because they had the capacity to save and had the need for lumpy
amounts at the end of different periods. The table also shows that the average
accumulated savings is about Rs. 7,700. When we integrate the same across 12-15
members, the total amount available as savings and hence as a loan is about Rs. 1 lakh.
This has been collected over a period of 5-7 years. The accumulation of savings has been
a very important way by which members find that they are slowly moving from loans
from money lenders. They feel the power of credit from savings and are becoming self
sufficient in terms of appetite of loans by members.
