SELF HELP GROUP

SELF HELP GROUP

The government is working on increasing the annual income of each woman in the Self Help Group to Rs one lakh by 2024.

About SHGs

• They are an informal group of people who choose to come together to find a way to improve their living standards and conditions.
• It is a self-governed, peer-controlled information group of people with similar socio-economic backgrounds and having an aim to collectively perform a common purpose.
• The motto of self-help is to encourage self-employment and poverty alleviation.

Objective of SHGs

• To frame the functional capacity of the poor and marginalized in the area of employment so that can help them in generating income.
• To resolve any conflict through the system of collective leadership and mutual discussion.
• To give them a collateral-free loan with terms and conditions decided by the group at the market-driven rate.
• Work as a collective guarantee system for the member who proposes to borrow from organized sources.

Why there is a need for SHGs?

• The main reason for rural poverty is low access to credit and the financial system so the SHGs help in the access to credit and play a critical role in poverty alleviation.
• SHGs can effectively contribute to financial inclusion.
• It also helps in improved literacy level, better health care, and even better family planning

Significance of the SHGs

• Voice to the marginalized section

People’s participation through SHGs ensures social justice and it also gives voice to the marginalized section of society.

• An alternative source of employment

It eradicates the dependency on agriculture by providing support in setting up micro-enterprise like grocery or pickle or papad-making enterprises.

• Gender equity

It empowers the women and inculcates leadership skills among them which also help them to participate more actively in gram sabha and other political processes.

SHGs play an active role in women’s life by rising their living conditions and enhancing their self-esteem.

• Social integrity

SHGs encourage collective efforts for combating practices like dowry, and alcoholism.

At the time of the pandemic, many women SHG came forward to meet the shortfall in masks, sanitizers, protective equipment, running community kitchens, running help desks, delivering essential food supplies and medicines to elderly, and quarantined and even providing financial and banking solutions to far-flung communities.

Issues of SHGs

• They are not making use of new technology innovation and skills because of their limited awareness of new technologies and they also don’t have adequate skills to use the technology.
• It has also been observed that the fund received is not used in the business process rather than it is used for personal and domestic purposes like marriage and construction of the house.
• There is no stability in the unit as many married women are not in a position to associate with the group due to the shift of their place of residence as well as there is no unity among members owing to personal reasons.
• Politicization of the SHG groups and poor coverage in urban areas.

Role of SHGs in women’s empowerment

• They can create their income which makes them independent and empower them to lead the family.
• It is also a powerful channel for altering the social construct of gender in the village.

Women are working in multiple sectors as business correspondents, Kisan Sakhi, and pashu sakhis. For Instance, SHGs like Kudumshree in Kerala, Mahila Arthik Vikas Mandal in Maharashtra, Jeevika SHG in Bihar supported by World Bank, and Sorath Mahila Vikas Mandali in Gir, Gujarat, not only help in income generation and empowerment of women but also fight against social taboos and stigmas to ensure social equity and justice.

Government Schemes

• Swarn Jayanti Gram Swarojgar Yojana – introduced in 1999 to promote self-employment in rural areas through the formation of SHGs.
• Deen Dayal Antyodya Yojana – National Rural Livelihood Mission (DAY-NRLM)- The program under the Ministry of Rural Development is a mission mode program that aims to organize rural poor women into SHG (at least one women member from each poor household).
• NABARD Self Help Group – Bank Linkage Program (SHG-BLP)- Not only provides microfinance to the SHGs but also supports policy advocacy, and capacity building through organizing workshops and training.

In the era of LPG where women are more aware of their right to social security and their status in society, SHGs are a mechanism that can empower women to live independently with a dignified life.