Published 2021-09-01
Abstract
In our country India, Self Help Groups characterize a distinctive approach to financial intermediation and empowerment of poor, especially women. SHGs are formed usually by both NGOs and Government organizations and also supported by them. SHGs are created to confer many benefits, both economic and social. SHGs are the community platform where women can take part in the affairs of village; stand for local elections, or to take action to address social and community issues.
A Self Help Group is a village based financial intermediary committee usually composed of 10 to 20 local women. The members of Self Help Group make small regular saving contributions for a few months until there is enough capital in the group for lending. Funds which are deposited in the account may then be lent back to the members or other villagers. These SHGs are then further ‘linked’ to banks for delivery of micro credit. It gives importance on capacity building, planning of activity clusters, communication build up, technology, and credit marketing etc.