Self Help Groups (SHGs)

What is Self Help Groups ?

Definition:

Self Help Groups is a small groups of individuals who voluntarily come together and form an association to achieve some common objective. The main/common objective is to eradicate poverty.
The SHGs consists of either only men or women.  
Important points:

1. It is a small groups (10 to 20 individuals)
2. Informal association
3. Common objective (eradicate poverty)
4. Define territory (village/streets)
5. Guided under some rules and regulations 
6. Homogeneous socio & economic background 

What are the Objectives of SHGs ?

1. Self reliance and support to each other
2. To secure them from Financial, technical and moral strengths 
3. To enable availing of loan for productive purpose 
4. To gain economic prosperity through loan/ credit
5. To develop collective decision making among women 
6. To encourage habit of saving among women 
7. To create group feelings and collective decision making
8. To enhance capacity building and leadership quality
9. Improve the leaving condition of rural women and men 

Why SHGs developed ? 
The following reasons have played a vital role for the development of SHGs concept. To eradicate the following issues the SHGs concept came forward. They are as follows: 

1. Fail to empower women 
2. Increase of rural property 
3. Gender inequality on economic or finance platform 
4. less credit linkage in rural area   
5. Gender inequality 
6. women's voice were depressed 
7. less literacy rate, poor health condition, less involvement in family planning 

What are the Benefits of SHGs ?

1. Social integrate 
2. Gender inequality 
3. Improvement of socio-economic condition 
4. Voice to marginalized section 
5. Financial inclusion
6. Banking literacy 
7. Improving efficiency of government scheme  
8. Alternate source of employment 
9. Impact of housing and health 
10. Pressure Groups 

What are the weakness of SHGs ?

1. Members are not from poorest family 
2. There is no Qualitative change 
3. Primitive skills providing 
4. Lack of qualified resource personnel in rural area 
5. Poor account practice  
6. Lack of recourses and  market linkage 
7. Poor accounting practice 
8. Highly dependent on NGOs and Government 
9. Lack of resources 

 What are the challenges of SHGs ?

1. Lack of knowledge and orientation
2. Patriarchal mind set  
3. Lack of rural banking facility 
4. No security 
5. Sustainability and quality of operation 

What are the measure to be taken to Make SHGs effective ? 

1. Government should play the role of felicitator and promoter 
2. Expanding SHGs movements to the credit deficient areas 
3. Rapid expansion of financial infrastructures 
4. Extension of SHGs to urban and pre-urban area 
5. Positive attitude of government functionaries  
6. SHG monitoring cell 
7. Need based approach   

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