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Role of SHG: by Anugya Singh X-E

Self-Help Groups (SHGs) are informal groups of 10-20 individuals that aim to promote financial inclusion, empower members, and foster self-reliance through collective decision-making. They play a crucial role in rural development by alleviating poverty, empowering women, and improving community infrastructure. Government support through training programs and financial linkages enhances the effectiveness of SHGs, contributing to socio-economic transformation.

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DEMON THE GAMER
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38 views7 pages

Role of SHG: by Anugya Singh X-E

Self-Help Groups (SHGs) are informal groups of 10-20 individuals that aim to promote financial inclusion, empower members, and foster self-reliance through collective decision-making. They play a crucial role in rural development by alleviating poverty, empowering women, and improving community infrastructure. Government support through training programs and financial linkages enhances the effectiveness of SHGs, contributing to socio-economic transformation.

Uploaded by

DEMON THE GAMER
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

ROLE OF

SHG
By Anugya
Singh
X-E
Introduction to
SHG and objective
Definitio
n are informal groups
Self-Help Groups (SHGs)
of 10-20 people who pool savings and
provide financial support to each other.
Objective
Financial Inclusion: Promote savings and
provide access to credit.
Empowerment: Enhance the socio-economic
status, especially of women.
Self-Reliance: Foster self-reliance through
collective decision-making.
Functions and Role in Rural
Development
Functions
Savings Internal Skill Social
Mobilization Lending Development Initiatives

Role
Poverty Women Community
Alleviation Empowerment Development
Supporting small Providing a platform Improving local
businesses and for women’s infrastructure, health,
increasing incomes. participation. and education.
Benefits of
SHG
Economic
Benefits
Access to low-cost credit, increased income, and reduced dependency on
moneylenders.
Educationa
l
Promotion of literacy and education, especially for
women.

Challenges of
Awarenes
s
SHG
Limited awareness among potential
members.
Financial
management
Challenges in managing funds and
accounts.
GOVERNMENT SUPPORT
Support programs Building and training
The government has launched various programs like the The government, along with NGOs, provides training
National Rural Livelihoods Mission (NRLM), which aims to programs for SHG members. These programs focus on
reduce poverty by enabling poor households to access financial literacy, entrepreneurship, skill development, and
gainful self-employment and skilled wage employment leadership, ensuring that SHGs can manage their resources
opportunities. effectively and grow sustainably.

Social security Financial linkage


SHGs are also linked to various social security SHGs are often linked with banks and microfinance
schemes like health insurance, pensions, and institutions through initiatives like the SHG-Bank Linkage
accident insurance. This ensures the well-being of Program. This ensures that SHGs have access to formal
members and provides them with a safety net in financial systems, enhancing their creditworthiness and
times of need. enabling them to undertake larger economic activities.
Conclusion
SHGs are vital for financial inclusion, empowerment, and
community development, especially in rural areas.

Continued support can lead to significant socio-economic


transformation.

Promote and support SHGs for inclusive and sustainable


development.
Thank you!

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