https://iaeme.com/Home/journal/IJM 451 editor@iaeme.com International Journal of Management (IJM) Volume 7, Issue 7, November–December 2016, pp.451–455, Article ID: IJM_07_07_050 Available online at https://iaeme.com/Home/issue/IJM?Volume=7&Issue=7 ISSN Print: 0976-6502 and ISSN Online: 0976-6510 Impact Factor (2016): 10.01 (Based on Google Scholar Citation) © IAEME Publication AN ANALYSIS OF FUNCTIONAL SUSTAINABILITY OF SHGs B. Baskar Assistant Professor, Department of Cooperation, Gandhigram Rural Institute, Gandhigram – 624 302, Tamil Nadu, India ABSTRACT Self-Help Groups (SHGs) are considered as new form of cooperatives wherein the members are the owners and they manage the affairs through their representatives. Their main aim invariability, to start with, is to fulfill the financial requirements. The activities of these SHGs are monthly savings, raising loan in the form of revolving fund and economic activity loan from government and non-government schemes, internal lending both for production and consumption purposes, taking up income generation activities individual as well as group and sometimes intergroup also, participation in federation activities and extending service to the community. The performance of the SHGs on these activities will ensure the perpetual existence and become a successful one. In this study the above functional aspects are assessed to find out the sustainability of SHGs in term of regional, gender and caste. Key words: Shgs, Functional Sustainability, Savings and Credit, Micro Enterprises, Community Activities Cite this Article: B. Baskar, An Analysis of Functional Sustainability of SHGs, International Journal of Management (IJM), 7 (7), 2016, pp. 451–455. https://iaeme.com/Home/issue/IJM?Volume=7&Issue=7 REVIEW OF RELATED STUDIES Raman, N.P.Y. (2000) reported that the recovery of loans from the SHGs were 95 per cent to 100 per cent The study proved that the SHG concept yielded encouraging results and the SHG created further a positive impact on the functional efficiency of the PACS as well. Murugan, K.R. and Dharmalingam, B. (2001) found out that most of the group members were attending the group meetings and Grama Sabha meetings regularly. They concluded that the rural women developed savings capacity, involved in income generation activities and non- credit services such as literacy, health and environmental issues through the SHG movement. Fernandez, A.P. (2003) analysed the number, size and purpose of loans which the ‘lower poor’, ‘middle poor’ and ‘upper poor’ have accessed. Besides, the study also assessed the impact of groups on village life and the impact on gender relations in the families of the members and the degree of economic progress achieved by the group members. The study concluded that empowerment grows out of people’s own institutions.