Facts about SHG

Self - Help Group (SHG)

Self-help group is organized by policy of government. It is a small group formed to help the members of the group and to spread awareness in terms of education, culture, craft development, environment and provide loan. it is a bank for a small section of people who are below poverty line. Since it is a bank that operates at a very small scale is it also called a Micro bank or informal rural bank every self-help group has president, sec¬retary, treasurer and other members. These representatives of every self-help group are a part of federation. SHG is also funded by government; this fund is known as revolving fund. These groups also help the govt. to know the Census of:
  • People below poverty line
  • Population
  • Education
  • Unemployment
Consists of women because:
  • Women only limited to their household responsibilities
  • Easily adapt to changes
  • Good at saving
  • Their knowledge and education helps in the growth of entire family.

Benefits of SHGs

  • Group formation helps in development of individual abilities of the members.
  • Develops sense of saving
  • Through shg banking the rate of interest is low
  • Develop mutual understanding
  • SHG helps socializing and developing sense of decision making
  • NABARD, SIDBI, SJSY support and help SHG.

Steps of making SHG

  • Forming (choosing of group).
  • Storming (deciding aim)
  • Norming (choosing the area of work).
  • Performing (working successfully as a group).

Points to be considered for SHG

  • It can consist of only women
  • It should be small and consist of 10-15 people.
  • Every member in the group should have a strong sense of saving
  • Age group 18-45years.
  • One person can join only one group.
  • One person per family.
  • Economic and social status of all the members should be same.
  • Name of the SHG should be simple for the members to remember and speak and should also be representative of their work.

Need of SHG

  • To give self-confidence.
  • For economic and social growth.
  • For the development of the villages.
  • To have common solution for the group.
  • To save money with the help of group formation.