Self Help Groups
Self Help groups are groups of rural poor people
(especially women). The idea is to help them organize themselves, help
them financially, provide them work, help them in other matters including
domestic issues. Such groups are helped
by the government and its policies.
such groups loans at very low interests and provides help to market the
products of SHG. There are
usually a dozen or more members in a group. This group acts an
intermediary between the people in the village and the banks.
NABARD (National Bank
for Agricultural Rural Development) helps the SHGs to promote the cottage
(handicrafts, oils, soaps etc) and village industries.
1. To organize rural people (sometimes urban people too) and
especially women into groups, in which they help themselves. They
regularly may do a service or produce a product of an acceptable quality.
The members usually have similar background and financial condition.
2. To collect the money saved by the members, manage the savings.
3. To provide the members loans as and when they need, without much
process and tough terms of loan. The loans are given at low interest
rates. This kind of credits are called micro-credits. The money from
savings of all persons in the group is used for loans.
4. To arrange a forum or platform for the members to discuss various
issues related to education, social injustice, domestic violence, development,
health issues, nutrition related issues, government policies and benefits etc.
5. These groups may be registered groups or unregistered. This
group functions informally and is efficient. These groups are started and
supported by many NGO (non-governmental organizations).
6. The empowerment of women, advise the use of birth controls, help
them getting over superstitions, educating the members and encouraging them to
join their children in schools.