SHG Full Form
What is the Full Form of SHG?
SHG stands for a Self-help group. It is a committee of 12 to 25 local women between the ages of 18 and 50. Although they can be found in other nations, particularly in South and Southeast Asia, they are most prevalent in India.
They are informal organized organizations where people gather to discuss how to better their living circumstances. They typically exercise self-discipline and peer control. People from similar social and economic backgrounds frequently work together with the aid of any non-governmental organization (NGO) or government organization to address their problems and enhance their quality of life.
The Self-Employed Women's Association (SEWA), founded in 1972, is credited with giving rise to SHGs in India.
Challenges Faced By SHG:
Expanding this concept to the poorest families is necessary, which is only sometimes the case.
Inadequate training facilities.
The SHGs operate based on trust. Deposits are neither secure nor safe.
Evolution Stages For SHG In India
It comprises three stages. The first step is to form a group, followed by the funding or formation of capital and the development of required skills to boost income generation for the group.
Functions Of SHG:
In employment and income-generating activities, they try to build the functional ability of the poor and marginalized groups in society.
They provide collateral-free loans to groups of people who typically struggle to obtain loans from banks.
Additionally, they use group leadership and conversations to resolve disputes.
They are a crucial supplier of microfinance services to the poor.
They serve as a source for official banking services to the underprivileged, particularly in rural areas.
Need For SHGs:
- SHGs are needed due to a lack of access to credit and financial services or restricted access, which are the leading causes of rural poverty.
- They significantly contribute to women’s empowerment by assisting economically disadvantaged women in establishing social capital.
- They are essential in helping the poor access financial services, which is essential for reducing poverty.
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Frequently Asked Questions (FAQs)
Only one member from one family can become a member of SHG.
A supportive environment should be created by the government for SHGs, in states like Madhya Pradesh, and Rajasthan are credit-deficient areas, and SHGs should be expanded over there.
Kudumbashree in Kerala and Mahila Arthik Vikas Mahamandal in Maharashtra are examples of SHGs in India.
Some common factors for membership in SHGs are women or men should be from very poor households, they have dry land holding less than 2.5 acres, basic needs like clean water, should be missing, and they may have illiterate adults in the family.
Minute book, saving and loan register, Weekly/fortnightly/monthly register and members passbook are the books kept by SHGs.