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SELF HELP GROUPS

A major stumbling block to development is access to capital. For individual people and families, it’s not access to huge sums of money – but very often to the equivalent of $10 or $20. With no bank account themselves, and no chance of the bank lending them this sort of unsecured sum, individuals get caught up in a series of situations which expose them to the clutches of money-lenders, or they do without. ‘Doing without’ can range from a child dying from a routinely curable illness, through to business opportunities remaining unexploited.

Each SHG naturally attracts like-minded members as it is important that each member of a group has similar values and needs. Women tend to be much more focussed on the fundamental economy of running a household, and evidence shows that they are more reliable when it comes to financial risk-taking and repaying loans. Members can leave a group, though very few do, but no-one can join after the group has started.

SHGs are characterised by regular (usually weekly) meetings, small but regular savings into a common fund, complete transparency in all financial transactions, and rotation of roles and responsibilities within the group. The group sets and follows their own Rules and Regulations.

Once capital has started to accumulate in the joint bank account, money is loaned out and repaid based on the series of mutually agreed and documented rules. Repayment is almost always 100% within the timeframe previously agreed. Loans are given based on a member’s ability to manage and repay. Once a SHG has become established and has a proven track record of reliability, banks become interested in lending it money at a reasonable rate. In this way individual members get access to capital.

Once the idea and advantages of one SHG are demonstrated in a community, more people become motivated, and other groups start up spontaneously.

SNEHA’s Promotion of Self Help Groups:

SNEHA has initiated 145 SHGs in total. The main objective of these groups is to promote micro credit and encourage a culture of savings amongst the poorest women. This goes hand in hand with the process of empowering women and improving their status in society.
In this context SNEHA has conducted the following activities

Further, the Women and Child Welfare Department has selected SNEHA as a Resource Organisation for conducting training and monitoring for the SHGs organised under the Stree Shakthi Programme in the surrounding villages as well as in the SNEHA working area.

Formation of SHG Federations:

Three federations for supporting the individual Self Help Groups have been formed to provide a forum for regular interaction and networking. The federation is helping the individual groups to build unity amongst them selves and to disseminate information to SHGs. In addition, it has built the strength and confidence to take-up community development activities that can’t be taken up by individual groups.