Self Help Group A self-help group (SHG) is a village-based financial committee usually composed of 10–
20 local women or men. SHGs are innovative organizational setup in India for the women welfare.
Self help group have been able to activate small savings either on weekly or monthly basis. Meaning of
Self Help Group: Self-help groups also known as mutual help, or support groups are groups of people
who provide mutual support for each other.
3. Need & Importance of Self Help Group Building of mutual trust between the promoting organization
and rural poor through regular contact and actual efforts. Create confidence for the economic
independence of rural people. Providing easy access to credit.
4. Characteristics of Self Help Group The ideal size of an SHG is 10 to 20 members The group need
not be registered The group should meet regularly Members have the same social and financial
background. The group consists of either only men or of only women. Monthly meetings of members
are held for solving their problems. They generally create a common fund by contributing their small
savings on a regular basis. Loaning is mainly on the basis of mutual need and
5. Functions of Self Help Group SHGs provide savings mechanism (save small amount of money)
regularly. To meet their emergency needs. To meet the credit needs of the poor. Enhancing the
social status of members. Facilitate members to become independent.
6. Cont.…. To solve conflicts through group guidance and mutual discussion. Developing and
encouraging the decision making capacity of members. Build mutual trust and confidence between the
bankers and the rural poor. Providing a forum for members for discussing their social and economic
problems. Providing literacy and increasing general awareness among members, and Promoting
numerically and equipping the poor with basic skills required for understanding financial dealings.
7. Advantages of Self Help Group India has around 2.5 million SHGs in rural areas. The groups usually
comprise of 8-10 women, who work in remote areas of the country.
8. Book keeping by the SHGs Simple and clear books for all transactions to be maintained. If no
member is able to maintain the books, someone to be engaged by the group for the purpose.
Membership register Savings and Loan Register Weekly or Stock Register Members’ Pass books
9. Membership register The proceedings of meetings, the rules of the group, names of the members,
etc. are recorded in this book. Savings and Loan Register Shows the savings of members separately
and of the group as a whole. Details of individual loans, repayments, interest collected, balance, etc.
are entered here. Weekly or Stock Register Summary of receipts and payments on a weekly basis.
Updated every meeting. Members’ Pass books Individual members’ passbooks encourage regular
savings.
10. Helpers in the formation of SHGs Social Workers, Health workers, Village level workers,
Banks, Bank personnel, Mahila Mandals, Yuvak Mandals, Facilitators, Non Governmental
Organizations (NGOs) etc.
11. Government Provisions: Aajeevika- National Rural Livelihood Mission (NRLM) plans to facilitate
women Self Help Group (SHGs) by giving them bank loans of over Rs. 1,00,000 and up to 3,00,000 for
undertaking various activities at easy interest rate. Pradhan Manyti Gram Parivahan Yojna launched on
August 2015. it will be on the lives of the ongoing rural roads schemes, Pradhan Mantri Gram Sadak
Yojna. Read more: www.dif.mp.gov.in/schemes.htm
12. Training Camp Women involved in livelihood activities like making candles, artificial jewellery,
pavement vendors, hawkers, tailoring jobs, retail shops and live stock rearing etc.
