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Self Help Group Notes

Self Help Groups (SHGs) are voluntary groups, primarily of women, aimed at improving economic and social conditions through savings and mutual support. They promote savings, provide loans, and empower women while addressing issues like poverty and financial inclusion. Despite challenges such as lack of training and poor management, SHGs have significantly enhanced the lives of many in India.

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Rebecca Lalrindiki Joute
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4 views2 pages

Self Help Group Notes

Self Help Groups (SHGs) are voluntary groups, primarily of women, aimed at improving economic and social conditions through savings and mutual support. They promote savings, provide loans, and empower women while addressing issues like poverty and financial inclusion. Despite challenges such as lack of training and poor management, SHGs have significantly enhanced the lives of many in India.

Uploaded by

Rebecca Lalrindiki Joute
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Self Help Group (SHG)

A Self Help Group (SHG) is a small voluntary group of people, usually women, who come together to improve their
economic and social conditions through mutual help. Members save money regularly and use the collected savings to
provide loans to one another. SHGs play an important role in rural development, poverty reduction, women
empowerment, and financial inclusion in India.

Meaning of SHG

An SHG generally consists of 10 to 20 members from similar socio-economic backgrounds. The members meet
regularly, discuss common problems, save money, and support each other.

Objectives of SHG

1. To encourage savings among members.


2. To provide small loans without depending on moneylenders.
3. To improve the economic condition of poor families.
4. To promote women empowerment and leadership.
5. To create awareness about education, health, and sanitation.

Features of SHG

• Small and voluntary group.


• Regular meetings and savings.
• Democratic decision-making process.
• Mutual trust and cooperation among members.
• Easy access to bank credit.

Importance of SHG

SHGs help poor people become financially independent. They encourage entrepreneurship, create employment
opportunities, and improve living standards. SHGs also increase confidence and leadership skills among women.

Functions of SHG

• Collecting savings from members.


• Providing loans to members.
• Conducting meetings and training.
• Promoting income-generating activities.
• Solving social and economic problems.

Advantages of SHG
• Reduces poverty.
• Promotes self-employment.
• Improves social unity.
• Encourages financial discipline.
• Helps women participate in decision-making.

Problems of SHG

• Lack of proper training.


• Poor management in some groups.
• Irregular repayment of loans.
• Limited financial resources.
• Lack of awareness in remote areas.

Conclusion

Self Help Groups are an important tool for social and economic development in India. They help poor people become
self-reliant and financially secure. SHGs have improved the lives of millions of women and families by encouraging
savings, cooperation, and small-scale business activities.

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