Self-help groups are village-based committees usually composed of 10-20 local women or men that provide mutual support for each other. They help members save small regular amounts, meet emergency needs through microloans, and gain economic independence. Self-help groups are an innovative setup in India that activate savings, build trust between rural communities and promoters, and provide access to credit. They meet regularly, discuss problems, and create a common fund through member contributions. Maintaining clear bookkeeping records is important for managing group finances and transactions. Various government programs and non-profits help establish and support self-help groups.

1. Compiled and Edited by
Ajita Gupta
Research Scholar
Dayalbagh Educational Institute
Self Help Group

2. Self Help Group
 A self-help group (SHG) is a village-based financial
committee usually composed of 10–20 local women
or men.
 SHGs are innovative organizational setup in India for
the women welfare.
 Self help group have been able to activate small
savings either on weekly or monthly basis.
Meaning of Self Help Group:
Self-help groups also known as mutual help, or support
groups are groups of people who provide mutual
support for each other.

3. Need & Importance of Self Help
Group
 Building of mutual trust between the promoting organization
and rural poor through regular contact and actual efforts.
 Create confidence for the economic independence of rural
people.
 Providing easy access to credit.

4. Characteristics of Self Help
Group
 The ideal size of an SHG is 10 to 20 members
 The group need not be registered
 The group should meet regularly
 Members have the same social and financial
background.
 The group consists of either only men or of only
women.
 Monthly meetings of members are held for solving
their problems.
 They generally create a common fund by
contributing their small savings on a regular basis.
 Loaning is mainly on the basis of mutual need and

5. Functions of Self Help Group
 SHGs provide savings mechanism
(save small amount of money)
regularly.
 To meet their emergency needs.
 To meet the credit needs of the poor.
 Enhancing the social status of
members.
 Facilitate members to become
independent.

6. Cont.….
 To solve conflicts through group guidance and
mutual discussion.
 Developing and encouraging the decision making
capacity of members.
 Build mutual trust and confidence between the
bankers and the rural poor.
 Providing a forum for members for discussing their
social and economic problems.
 Providing literacy and increasing general awareness
among members, and Promoting numerically and
equipping the poor with basic skills required for
understanding financial dealings.

7. Advantages of Self Help
Group
India has around 2.5 million SHGs in rural areas. The
groups usually comprise of 8-10 women, who work in
remote areas of the country.

8. Book keeping by the SHGs
 Simple and clear books for all transactions
to be maintained. If no member is able to
maintain the books, someone to be
engaged by the group for the purpose.
 Membership register
 Savings and Loan Register
 Weekly or Stock Register
 Members’ Pass books

9. Membership register
 The proceedings of meetings, the rules of the
group, names of the members, etc. are recorded
in this book.
Savings and Loan Register
 Shows the savings of members separately and of
the group as a whole.
 Details of individual loans, repayments, interest
collected, balance, etc. are entered here.
Weekly or Stock Register
 Summary of receipts and payments on a weekly
basis. Updated every meeting.
Members’ Pass books
 Individual members’ passbooks encourage
regular savings.

10. Helpers in the formation of
SHGs
 Social Workers,
 Health workers,
 Village level workers,
 Banks,
 Bank personnel,
 Mahila Mandals,
 Yuvak Mandals,
 Facilitators,
 Non Governmental Organizations (NGOs) etc.

11. Government Provisions:
 Aajeevika- National Rural Livelihood Mission
(NRLM) plans to facilitate women Self Help Group
(SHGs) by giving them bank loans of over Rs.
1,00,000 and up to 3,00,000 for undertaking various
activities at easy interest rate.
 Pradhan Manyti Gram Parivahan Yojna launched
on August 2015. it will be on the lives of the ongoing
rural roads schemes, Pradhan Mantri Gram Sadak
Yojna.
 Read more: www.dif.mp.gov.in/schemes.htm

12. Training Camp
Women involved in livelihood activities like
making candles, artificial jewellery, pavement
vendors, hawkers, tailoring jobs, retail shops and
live stock rearing etc.

13. Tailoring

14. Bags they have manufactured
themselves:

15. Coloring Murti

16. Embroidery

17. The women learn to do batik using
a simple hand made tool:

18. Art & Craft
Flower Buckeye
Natural Dye
Sailing
Products

19. Weaving
Chain Making
Catering