Self Help Group (SHG): Features of Self-Help Group

 

SHGs (Self Help Group) are registered or unregistered small economically homogenous and affinity groups of rural poor, voluntarily coming together for mutual benefit.

There are four stages involve in completion of a SHG:

• 1        Formation of Group
• 2.       Stabilization of group
• 3.       Micro credit stage
• 4.       Micro enterprise development stage.

 

Important features of the SHG (Self Help Group):

1. Number of members can be between 10-20 but for irrigation projects, there is no ceiling on number of members. For handicap persons, the number of people can be 5-20.

2. Members are generally the persons below poverty line. Member marginally above poverty line normally up to 20% (exceptionally 30%) can also be included, but they will not be eligible for subsidy.

3. There can be one person from one family in one SHG.

4. A person cannot be member of more than one SHG.

5. Regular weekly or fortnightly meeting mandatory.

6. Members are to save regularly out of their earning.

7. Saved funds are meant for lending to members on which decision is to be taken by all members.

8. There should be proper record or bookkeeping.

9. Bank linkage by way of saving account.