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  • Self Help Groups

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    Bhaskar Bogar
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    Self Help Groups (SHGs) are groups of 10-20 people in a locality formed for social or economic purposes, most commonly for better financial security among members. SHGs can operate with or without registration and often work in association with bank linkage programs to provide microfinance. There are over 40 lakh active SHGs in India involving 10 crore people, with an aggregate bank balance of Rs. 56,000 crores. SHGs play an important role in generating income for the poor and providing them access to banks and credit.

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    Self Help Groups (SHGs) are groups of 10-20 people in a locality formed for social or economic purposes, most commonly for better financial security among members. SHGs can operate with or without registration and often work in association with bank linkage programs to provide microfinance. There are over 40 lakh active SHGs in India involving 10 crore people, with an aggregate bank balance of Rs. 56,000 crores. SHGs play an important role in generating income for the poor and providing them access to banks and credit.

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    23 views1 page

    Self Help Groups

    Uploaded by

    Bhaskar Bogar
    Self Help Groups (SHGs) are groups of 10-20 people in a locality formed for social or economic purposes, most commonly for better financial security among members. SHGs can operate with or without registration and often work in association with bank linkage programs to provide microfinance. There are over 40 lakh active SHGs in India involving 10 crore people, with an aggregate bank balance of Rs. 56,000 crores. SHGs play an important role in generating income for the poor and providing them access to banks and credit.

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    What are Self Help Groups (SHGs)?

    Self Help Groups are groups of 10-20 people in a locality formed for any social or economic purpose. Most of the SHGs are formed for the purpose of better financial security among its members. SHGs can exist with or without registration. SHGs in ndia often wor! in association with "an!s #SHG $ "an! %in!age &rogramme'. (he same is basis of ndian Micro finance Model too. SHG $ "an! %in!age was started in ndia in 1))2 under the guidelines of *+"+,- and ,eser.e "an! of ndia. Self Help Groups and Their Origin +ll problems cannot be sol.ed alone. SHG are a form of enterprise. (hey perform the role of collecti.e ban!s. (hey mobili/e sa.ings from the members and performs both debit and credit functions. 0or external credit1 SHG lin!s with the ban!s ie. SHG- "an! lin!ages. *ow SHGs also lin!s with companies ie. SHG-2orporate lin!ages. 0or 3omen SHGs1 Go.ernment is pro.iding interest sub.ention scheme. mportance of SHGs $ ncreased incomes of poor through collecti.e performance. Statistics of SHGs in India 40 la!h SHGs with acti.e ban! lin!ages in ndia. n.ol.ement of 10 crore people of ndia. +ggregate ban! balance of ,s.5600 crores. )07 SHGs in ndia consist exclusi.ely of women. SHG-Bank Linkage rogra! in India ndian Microfinance Model ntroduced in 1))2 $ Guidelines by *+"+,- and ," . "ole of Self Help Groups 1. ncome generation for poor . 2. +ccess to ban!s for poor 1financial inclusion. 8. +gainst -owry1 +lcoholism etc. 9. &ressure group in Gram &anchyats. 6. Social :pliftment of marginal sections. 5. :pliftment of women. Wh# SHG are a necessit# in rural de$elop!ent? n ndia there is a substantial percentage of rural and urban poor 1 who if tried indi.idually cannot brea! their chains of po.erty1 and hence collecti.e action is re;uired. 0or self employment and financial independence1 poor sections needs credit . "an! credits are not easily accessible to indi.idual poor 1 but by forming a SHG1 there are ma!e better prospects for ban! credits. #often without collateral'. (he chances of successful income generation is high with SHGs than indi.idual attempts.

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