SELF HELP GROUP

Self-Help Group (SHG) is a small voluntary association of poor people, preferably from the same socio-economic background, who do not have access to formal financial institutions. They come together for the purpose of solving their common problems through self-help and mutual help. They act as the forum for the members to provide space and support to each other. Though difficult to define in clear terms, a major indicator of homogeneity in the membership is the absence of conflicting interests. There should not be any discrimination among members based on caste, religion or political affiliations. The 50% of the groups formed in each block should be exclusively for women. SHGs significantly contribute to the empowerment of poor women.

The SHGs promote small savings among their members whose number does not exceed twenty per group. The savings as a common fund are kept with a bank in the name of the SHGs. The SHGs provide savings mechanisms, which suit the needs of the members. In a group like this, the members get an opportunity to express themselves openly and freely. These groups also enable the members to learn to cooperate and work in a group environment and provide a cost effective delivery mechanism for small credit to the members.