Evolution of Self Help Groups in India

What are Self Help Groups?

Self Help Groups refer to those types of informal groups of people who come together to find ways to improve their condition life. They are mostly self-governed....

Emergence of Self Help Groups- Origin and Development

The development of SHGs in India started with the establishment of the Self-Employed Women’s Association in 1972. Even before the institutionalization of the concept of self-help groups, small steps and efforts were taken for self-organizing like that in 1954, the Textile Labour Association of Ahmedabad, formed a part of the women’s wing for women who belonged to families of mill workers....

Evolution of Self Help Groups in India

There are mostly three stages In the evolution of self-help groups:...

Functions of the Self Help Groups

One of the important functions is to build the capacity of the poor and also the marginalized groups of society, in the areas of employment and also income generation. Collateral-free loans are offered to people who find it difficult to take loans from banks. Conflicts are resolved with the help of mutual discussions and also leadership. Microfinance services to the poor are provided essentially by these groups. They are an intermediate group for formal banking services for the poor in rural areas. They encourage habits of saving among the poor....

Need for Self Help Groups

Rural poverty is mostly due to a lack of access or limited access to credit and also financial services. They act as an important element of credit linkage in rural areas and act as a system of a community network. Rangarajan Committee Report has mostly highlighted reasons for the lack of financial inclusion in India: Weak credit absorption. Lack of collateral security The insufficient reach of institutions. They provide credit for the poor and are extremely vital for poverty alleviation. Empowering women and awakening the economically weaker sections to build social capital. Other developmental factors can also be improved with financial independence like that as healthcare, literacy, family planning, etc....

Significance of SHGs

Gender Equity...

Issues with SHGs

Weak Financial Management...

Self Help Groups in India

Mahila Arthik Vikas Mahamandal in Maharashtra (MAVIM)...

Way Forward for SHGs

Government should act as both a facilitator and also promoter of SHGs and also create a supportive environment for the development of the SHG movement. More SHGs facilities should be provided in the states of Madhya Pradesh, Rajasthan, and North-East India. IT-enabled communication should be expanded and also capacity-building measures of the states, with the improvement of financial infrastructure. Efforts to increase income generation for the urban poor as there is the rapid rise of urbanization always result in financial exclusion. SHG monitoring cells should be incorporated in every state and both qualitative and quantitative information to be collected....

FAQs on Self Help Groups

Question 1: What are self-help groups?...