It is estimated that more than 25 million rural women in India have benefited by the Self Help Groups (SHG). The socio-economic benefits include independence to economic independence, participate in village life and awareness education. This article aims to give a brief overview of the functioning of SHG.
WHAT IS A SHG?
Self Help Groups are small groups of people facing similar problems. The group members help each other solve their problems. A reasonably educated person but is helpful local management mobilization of these people to form a group.
The called party moderator / facilitator helps the group develop the habit of savings and promote small savings among them. The group savings are kept in a joint bank account from which small loans are granted to members.
After six months, the SHG can approach any bank to use facility ready for business appropriate activity. The loan is divided among group members to start a small business. The loan is repaid out of profits.
WHO CAN BECOME A HOST? What are its functions?
The facilitator plays an important role in the functioning of SHGs. Any which can be animated. A retired school teacher or government employee, or instruction but unemployed youth in the locality, or NGOs. The facilitator (he or she) must want to help others.
1. The host talks to the people by holding small meetings or approach them individually.
2. He / she explains the advantages of savings and group training.
3. It helps the group identify their Leader.
4. It also guides in maintaining their accounts, etc. In general, the role of facilitator is to guide and motivate the head and members of SHG.
TRAINING OF SHG
The ideal size is 10-20 SHG members. A smaller size is preferred because in a large group members can not participate actively. The group may or may not be registered. Only one person in a family can become a member of a SHG. A group of men or women is formed. A mixed group is generally not the best. It is important that members have a common social and financial. For example, the group should be farmers, artisans, craftsmen, servants, factory workers, etc. The advantage of a homogeneous group is that members can freely interact. Next could be some common factors to join SHG:
1. Women / men of poor households.
2. Those with dryland holding no MRE 2 acres.
3. Not having access to drinking water
4. Having illiterate adults in the family
5. Presence of alcoholic or drug addict or person with a long illness in the family.
6. SC or ST families
MAIN FUNCTIONS OF SHG:
1. Savings and savings
2. Internal Loan
3. Keeping the proper accounting of transactions
4. Discuss problems
After satisfactory performance of SHG and sufficient balance on the joint account, the SHG can approach any bank for the convenience of availing loan. The RBI and NABARD has issued special directives to all banks to support microfinance in these groups. The SHG can contact to the bank with the following documents:
Resolution of SHG
Permission SHG
Copy of rules and regulations of SHG
Booklet his account
The details of financial transactions
The bank / agent field manager assesses the performance of SHGs based on guidelines issued by RBI / NABARD and if found with these criteria, the SHG is liable to a credit facility. NABARD rules stipulate that no deposit is required for loans sanctioned to SHGs. Credit is given to the group to a much lower interest rate. The group may charge for 2-3 cent more to its members for its operation.
A repayment schedule is established with the SHG and the loan is repaid in regular installments small and frequent. The loan is the collective responsibility of the members. Experience Bankers said that repayments of SHGs are much better than individual accounts.
The SHG movement has taken root in India and contributes to poverty women against poverty, and greater empowerment. The government should encourage this movement to a larger scale.
http://indiastudychannel.com/resources/98260-Self-Help-Groups-An-Overview-Functioning.aspx
Malhar V. Lathkar
