Scribd
Upload
226 views18 pages

Self Help Groups

Self Help Groups (SHGs) are small financial institutions made up of 10-20 people from similar economic backgrounds. Members make regular savings contributions that are lent back to members when needed. SHGs aim to provide affordable credit to members and protect them from exploitative money lenders. Key principles are that members own and benefit from the SHG. SHGs help develop regular savings habits, provide easy and timely credit, empower and build confidence among members. They offer benefits like low-cost savings and loans near home as well as social and economic development of members. Proper formation involves gathering interested local people, discussing objectives, forming groups of 10-20, electing officers, and opening a bank account.

Uploaded by

ykbharti101
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
226 views18 pages

Self Help Groups

Self Help Groups (SHGs) are small financial institutions made up of 10-20 people from similar economic backgrounds. Members make regular savings contributions that are lent back to members when needed. SHGs aim to provide affordable credit to members and protect them from exploitative money lenders. Key principles are that members own and benefit from the SHG. SHGs help develop regular savings habits, provide easy and timely credit, empower and build confidence among members. They offer benefits like low-cost savings and loans near home as well as social and economic development of members. Proper formation involves gathering interested local people, discussing objectives, forming groups of 10-20, electing officers, and opening a bank account.

Uploaded by

ykbharti101
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

1

Self Help Groups

6/28/21
2 What is SHG?

 SHG is group of 10-20 equally financial condition people who have started to
organize in group a group and started saving fixed amount.

 Out of this saving amount a credit is given to group members whenever required
for hospitalization, education, farming, business etc. The decision of borrowing
is taken by group members

 SHG is like a small bank for members which does a transaction of money
amongst the members.

6/28/21
3 Benefit of SHG

 Often people need to take loans for marriage, sickness treatment, work and
business. Due to compulsion, they have to take loan from Mahajan at the rate
of interest. They are charged a lot of interest by a month. Mahajan charges a
lot of interest from them. Self-help groups are formed to protect the poor
people from their clutches and to make them self-reliant.

6/28/21
4 Three Basic Principles of Self Help Groups

 Owners of self-help groups are its members.


 The beneficiaries of a self-help group are its members.
 The members of the self-help group are its members.

6/28/21
5
 Main objectives of the Self Help Group

 Develop habit of saving regularly among poor people.


 Easy credit on time.
 Organizing the group and empowering it.
 To instill confidence in the group members.
 To develop leadership capacity among the members.
 Conduct various socio-economic activities through the group.
 To raise awareness and make concerted efforts for the prevention of social
evils, misconceptions and superstitions.
 Increase participation in local / village level institutions.
6/28/21
6 Benefits of SHGs - 1
 Facility of saving and loan near home.
 Low expenditure and receipt of loan in minimum accounts.
 Getting loan as per requirement - for both production and consumption.
 The loan amount is determined according to the need.
 The loan does not require a similar mortgage.
 The rate of interest for both savings and loans is determined by the group.
 Due to peer pressure, repayment of loan takes place on time.
 The loan can be repaid in installments.
 The term of the loan can be extended if the need arises.

6/28/21
7 Benefits of SHGs - 2
 Being in a group of interest increases the capital of the group.
 There is economic development of the individual and the group.
 Voluntary, government development programs and banks can be facilitated.
 The operational skills of the individual and the group are developed.
 There is a need for literacy and literacy knowledge.
 Solidarity and self-aggrandizement increase because it is an ongoing trend.
 Discuss and resolve community and social issues.
 The additional capital of the group can be put into development work, which will
improve the level of women in the society.

6/28/21
8 Characteristics of good SHG
 Knowledge of the purpose of the group to the members.
 Having a small group so that mutual coordination is good.
 Having the group's own rules and regulations.
 Regular group meeting (meeting).
 Democratic system of work - such as division of workload, openness, collective
decision, etc.
 To be accountable, timely and correct.
 Turning group capital into loans.
 Approaches to Perfect Development - Focus not only on the economic aspect but also
on the physical, social and political aspect.

6/28/21
9 Who can be a members of a group?
 Generally, all the members of the group are living in the same place.
 They should have the same socio-economic status.
 Members of the group can be either men or women. But if the groups of women and
men are different, then it would be more appropriate.
 Member should be the person who earns.
 There will be only one member of a family in the group.
 The member should not be bankrupt, suspicious in character.
 The age of the member should be between 18 and 60 years.

6/28/21
10 Benefits of SHGs
 There is economic development of the individual and the group.
 Voluntary, government development programs and banks can be facilitated.
 The operational skills of the individual and the group are developed.
 There is a need for literacy and literacy knowledge.
 Discuss and resolve community and social issues.
 The additional capital of the group can be put into development work, which will
improve the level of women in the society.
 A good group is a friend and guide for members.

6/28/21
11 Process of group formation!
 First the regional workers should gather the local people and discuss the following
points -
 What is a self help group!
 What are the benefits of this?
 Why a group is formed!
 Who can become a member of a group!
 How to Form a Group!
 What will be its functioning!
 Discuss the above points in detail in one to two meetings with the local people.
 When the curiosities of the people are resolved and they are ready to voluntarily
become members of the group, then further action can be taken: -.
6/28/21
12 Process of group formation!
 List 10 to 20 people for a group.
 Determine the amount of savings by collective decision.
 Elect the office bearers among the members of the group, such as the Chairman,
Secretary and Treasurer.
 The membership fee and group savings should be handed over to the Secretary and
Treasurer.
 Ask the Chairman, Secretary and Treasurer to open an account in the bank in the name
of the group.
 Deposit the amount received from the members in the bank.

6/28/21
13 Why it is important to make rules for the group!

 All can be equally benefited without discrimination.


 To run the work of the group smoothly without personal interest.

6/28/21
14 How to make group rules!
 All can be equally benefited without discrimination.
 To run the work of the group smoothly without personal interest.

6/28/21
15 How to make group rules!
 All can be equally benefited without discrimination.
 To run the work of the group smoothly without personal interest.

6/28/21
16 Who will conduct the group meeting!

A Steering Committee will be formed unanimously to conduct group activities


and meetings. There will be 3 officials in this committee. President, Secretary
and Treasurer. These will be selected. The posts of Chairman, Secretary and
Treasurer are of great responsibility in the group. These people lead the group.
These people lead the group. Therefore, they should be chosen with great care.

6/28/21
17 How long can a group work?
 If the quorum of the members is not fulfilled in the group meeting for six
consecutive months, the group can be dissolved. At least 2/3 of the
members are required to attend the monthly meeting.
 A member can voluntarily relinquish his membership. Before leaving
membership, he will be required to pay all the liabilities of the group or
bank.
 Members' membership can be terminated if they do not follow the rules of
the group.
 Upon the death of a member, his membership will cease. His heirs will get
the amount of his savings.

6/28/21
18

 THANK YOU

6/28/21

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy