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Self help group uses and benefits, Study notes of Social change

Amity University - BiharSocial change

This paper discusses self help groups

Typology: Study notes

2021/2022

Uploaded on 06/11/2022

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INTRODUCTION
Self-Help Groups (SHGs) are loosely organized groups of people that meet to discuss how to
improve their living situations. It may be considered as a self-governing, peer-controlled
information network of individuals with equivalent socioeconomic backgrounds who want to
work together to achieve a shared goal.
It aims to improve the poor and marginalizes functional ability in the areas of employment
and income-generating activities. Conflicts are resolved by a combination of communal
leadership and mutual conversation. It offers a no-collateral loan with conditions set by the
organization and market-driven rates. Members who propose to borrow from organized
sources might use such groupings as a collective guaranteed scheme. The impoverished save
their money and deposit it in banks. In exchange, individuals would have easy access to low-
interest financing to help them launch their micro business. As a result, Self-Help Groups
have emerged as the most efficient means of providing microfinance to the needy.
History of Self help groups -:
SHGs have a long history, dating back to the Mysore Resettlement and Area Development
Agency's actions in 1985. (MYRADA). The SHG movement began in the southern states
under the leadership of MYRADA. In these states, there is a broad knowledge of thrift and
the significance of low-cost credit, particularly among women. MYRADA's initiatives
included roughly 300 SHGs by 1986-87. MYRADA provided training to these organizations
on a variety of topics, including how to organize meetings, make agendas, record minutes and
accounts, and so on. Several organizations, including the National Bank for Agricultural And
Rural Development (NABARD), the Reserve Bank Of India (RBI), major NGOs, and
international agencies such as the International Fund For Agricultural Development (IFAD),
have aided the rise of SHGs over time.
The evolution of SHGs may be divided into two phases:
Phase 1 (from 1987 to 1992):
During this time, NABARD was the primary source of assistance to SHGs. In 1987,
NABARD took steps to aid MYRADA with a grant of INR 1 million. It subsequently assisted
other NGOs working to promote SHGs. The SHG model was authorized as an alternate credit
option by the RBI in 1992.
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INTRODUCTION

Self-Help Groups (SHGs) are loosely organized groups of people that meet to discuss how to

improve their living situations. It may be considered as a self-governing, peer-controlled

information network of individuals with equivalent socioeconomic backgrounds who want to

work together to achieve a shared goal.

It aims to improve the poor and marginalizes functional ability in the areas of employment

and income-generating activities. Conflicts are resolved by a combination of communal

leadership and mutual conversation. It offers a no-collateral loan with conditions set by the

organization and market-driven rates. Members who propose to borrow from organized

sources might use such groupings as a collective guaranteed scheme. The impoverished save

their money and deposit it in banks. In exchange, individuals would have easy access to low-

interest financing to help them launch their micro business. As a result, Self-Help Groups

have emerged as the most efficient means of providing microfinance to the needy.

History of Self help groups -:

SHGs have a long history, dating back to the Mysore Resettlement and Area Development

Agency's actions in 1985. (MYRADA). The SHG movement began in the southern states

under the leadership of MYRADA. In these states, there is a broad knowledge of thrift and

the significance of low-cost credit, particularly among women. MYRADA's initiatives

included roughly 300 SHGs by 1986-87. MYRADA provided training to these organizations

on a variety of topics, including how to organize meetings, make agendas, record minutes and

accounts, and so on. Several organizations, including the National Bank for Agricultural And

Rural Development (NABARD), the Reserve Bank Of India (RBI), major NGOs, and

international agencies such as the International Fund For Agricultural Development (IFAD),

have aided the rise of SHGs over time.

The evolution of SHGs may be divided into two phases:

 Phase 1 (from 1987 to 1992):

During this time, NABARD was the primary source of assistance to SHGs. In 1987,

NABARD took steps to aid MYRADA with a grant of INR 1 million. It subsequently assisted

other NGOs working to promote SHGs. The SHG model was authorized as an alternate credit

option by the RBI in 1992.

 Phase 2 (from 1992 to the present):

The connectivity between SHGs and banks was completed in the second phase, with the RBI

and IFAD providing unwavering assistance. Credit has been given to around 1,628,456 SHGs

with a total membership of over 24 million families by March 2005.

TYPES OF SHG

Few of the significant types of Self-Help Groups:

 Non-governmental agencies:

NGOs are bodies which function free from the control of governmental control. These

are said to be non-profit governmental bodies which work for the welfare of societies.

They act as a mediator between society and government. When some issues are not

solved or reached to the government NGO’s play an important role in conveying these

issues and some issues which are intentionally looked down by the government then

these NGO’s look after those issues. Here those people participate who want to make

the world a better place for every individual who is suffering.

 Government:

A government is the system or group of people governing an organized community,

generally a state. In the case of its broad associative definition, government normally

consists of legislature, executive, and judiciary. Government is a means by which

organizational policies are enforced, as well as a mechanism for determining policy.

In many countries, the government has a kind of constitution, a statement of its

governing principles and philosophy. While all types of organizations have

governance, the term government is often used more specifically to refer to the

approximately 200 independent national governments and subsidiary organizations.

Historically prevalent forms of government include monarchy, aristocracy, timocracy,

oligarchy, democracy, theocracy, and tyranny. The main aspect of any philosophy of

government is how political power is obtained, with the two main forms being

electoral contest and hereditary succession.

 Poverty management programmes:

IRDP in India is among the world's most ambitious programs to alleviate rural

poverty by providing income-generated assets to the poorest of the poor. This

program was first introduced in 1978–79 in some selected areas but covered all the

areas by November 1980. During the sixth five-year plan (1980–85) assets worth 47.

billion rupees were distributed to about 16.6 million poor families. During 1987–88,

another 4.2 million families were assisted with an average investment of 4,471 per

family or 19 billion rupees overall. The major objective of the Integrated Rural

Development Program (IRDP) is to raise families of identified target group below the

poverty line by creating sustainable opportunities for self-employment in the rural

sector. Assistance is given in the form of subsidy by the government and term credit

•Women empowerment is a prime focus.

  • Saving people from the clutches of money lenders •Building capacity of women and to enable them to participate in generating activities. •Creating the habit of saving in the minds of the people who are economically backward. •Promoting entrepreneurship skills among women. •Creating awareness about the importance of credit circle or revolving credit and the payment of the circle. •Elevating the economic standard of the member’s families. •Developing skills and facilitating credit linkages for eventual economic empowerment. •Promoting awareness among the members about finding solutions for their economic problems. •Identifying the common interest of the group members and carrying out their operations in the most efficient and economical way. •Enabling the members to overcome all social and economic barriers. •Promising and ensuring human rights to women at all stages of their life cycle.

SHG FOR WOMEN

The Self-Help Groups (SHG) initiative was adopted by India several decades ago in order to alleviate poverty and improve women’s ability to achieve rights and well-being. At the beginning, SHG was an initiative undertook by NGOs, but later, due to its success in improving live standards and delivering public goods and services, Indian State engaged in facilitating access to financial resources.

  1. Overview of SHG movement in India Historical Evolution of SHGs: •By the late 1980’s, Myrada, an NGO located in South India, formed around 300 autonomous SHGs known as the Credit Management Groups. •The National Bank for Agricultural and Rural development (NABARD), found SHG as an interesting and effective strategy to provide banking services to the so called ‘un-bankable’ people. •Between 1991 and 1992, NABARD in consultation with RBI, Commercial Banks (CBs) and NGOs launched the pilot project of linking the SHGs with Commercial Banks, based on NABARD guidelines. •By the late 1990s and early 2000, given its success the government had become a key promoter of SHGs. Decentralization of power at the Panchayt’s level in 2004 gave local bodies more teeth and SHGs came to be recognized as a powerful institution for the poor. •By March 2005, the programme had provided credit to 1 618 456 SHGs with a membership of over 24 million poor families or about 120 million poor people, making it the largest microfinance initiative in the world. 2. The stages of a SHG progression from a financial intermediation platform to a community institution of empowered women are the following:

-Stage I: SHG provides a new opportunity for women to come together, meet regularly, discuss, debate and exchange views on important common issues -Stage II: The emerging financial power through their association with SHG contributes to increase women’s influence on household decision making -Stage III: Women start assuming a larger role in their communities like community work, monitoring and implementation of government programmes and schemes and participation in community meetings. They are now seen as active participants in village community -Stage IV: Women graduate from being participant in social and political platforms to a more empowered role where they could successfully contest elections and assume political power.

GOVERNMENT SCHEMES OF SHG IN INDIA

Some of the Self-help groups in West Bengal and other states of India are mentioned below:- Self-help groups in West-Bengal ●Swami Vivekananda Swanirbhar Karmasansthan Prakalpa(SVSKP): SVSKP, a flagship scheme of the Department of SHG&SE is implemented by the West Bengal Swarojgar Corporation Ltd. (WBSCL). Implemented across the state, the basic objective of the scheme is to provide increased access to credit for the development of rural/urban enterprises by supporting unemployed young individuals and groups of individuals. Unemployed young persons, within the age group of 18 to 45 years and an income ceiling of Rs.15,000/- per month for the family are included as the target group for the scheme. ●West Bengal Swanirbhar Sahayak Prakalpa (WBSSP): WBSSP was launched in the 2012- financial year with the objective of reducing the interest burden of the Self-help Groups accessing bank credit through the interest subvention. The scheme ensures that no Self-help Group pays more than 2 percent as interest for the bank loan received. ●Muktidhara: This was an initiative in achieving convergence for SHG members and unemployed youth. Muktidhara was initiated as a small experiment in the district of Purulia to enhance livelihood opportunities of the tribal women through specific micro firm-based as well as non-firm projects and training interventions. Some of the initiatives in Purulia emerged as interesting models of development, especially for tribal women. ●SamajSathi: an assurance scheme against accidents faced by the SHG members: SamajSathi is an assurance scheme for the self-help group members of the state. The task in this regard has been entrusted to the SHG & SE Department as the Nodal Department and WBSCL as the Implementing Agency. This project aims at providing critical support to the self-help group members and members of their families falling victims to accidents. ●Jaago: The Department of SHG&SE is at the final stage of giving shape to an ambitious project of supporting all the graded self-help groups of the State or SHGs accessing bank credit through a modest annual revolving fund support of Rs.5,000.00. This ‘no strings attached’ funding support is expected to give a boost to the empowerment of the groups. Other self-help groups in India •The Kudumbashree project was started in Kerala in 1998, as a community action to eradicate poverty. It has become the largest women-empowering project in India. There are 3 components namely, microcredit, entrepreneurship and empowerment. Kudumbashree is a government agency.

 Government functionaries should treat the poor and marginalized as viable and responsible customers and as possible entrepreneurs.  SHG monitoring cell should be established in every state. The cell should have direct links with district and block level monitoring system. The cell should collect both quantitative and qualitative information.  Commercial Banks and NABARD in collaboration with the State Government need to continuously innovate and design new financial products for these groups to meet their needs. There are common misconceptions about support groups—including about what they can and cannot do. A support group can be defined as a group of people who share concerns or experiences. These groups meet regularly to provide each other with advice, comfort, and encouragement. While support groups can be important in the recovery process, they are not meant to provide treatment. Instead, their focus is on providing peer support, allowing members to share their stories, celebrate each other’s successes, and talk about coping strategies that may help. Family and friends are still an important source of support for people in recovery, but they are not always able to understand what the person might be going through. Support groups help fill in an important gap in social support by providing the opportunity to talk to people who have been in the same situation and may be better able to empathize and offer tips coming from a lived experience. If a family member is dealing with an addiction or mental health disorder, a support group may be the ideal place for them to feel less isolated and to learn from others with similar problems and shared experiences. Mutual support groups often begin by asking members to introduce themselves or they may start by asking a member of the group to volunteer to share something with the group. Some important things to remember:  Respect the confidentiality of other members of the group.  Do not feel pressured to participate – It’s important for you to be comfortable with the group so you can eventually open and get to know your peers.  Support groups can offer inspiration and strength. They are not meant to provide or replace treatment, but they can help complement professional treatment during your recovery.