SHG movement has now been become an effective strategy for poverty alleviation. This approach has become a prominent element of social mobilization. SHG is a voluntarily formed group comprising of 10-20 adult members, to address their common issues. In case of disabled, the SHGs can be formed with 5
members. Many Exclusive SHGs possibly can not be formed because of many reasons but inclusion of PWDs in normal group is very much possible. The SHGs are encouraged for saving within the range of Rs. 20 to Rs. 100/- and they rotate this common pooled resource within its members on minimum rate of interest. Each group usually has a leader called the President/Secretary. These leaders maintain the record of transactions, meetings etc and initiate steps for grading and financial linkages. As per PWD ACT, 1995; 3% reservation has been kept for PWDs under poverty alleviation programme. The SHGs of PWDs may be linked with Government schemes such as NHFDC SGSY, Mission Shakti & financial institutes like NABARD. Some funding agencies like CASHE, CARE, BASIX, Action Aid etc. are also supporting SHGs. Identification of feasible and viable venture, long term market, linkages, quality product and competative rates are the key factors of success of SHGs.
Definition : “Self Help Group is a voluntarily formed group, comprising 10-20 members, residing in the same locality”.
Objectives of SHGs
The main objectives are : Socio-Economic empowerment, easy access to financial services, enhancing collective bargaining power, self-reliance, social awareness and getting rid of the clutches of Sahukars.
Who can promote SHGs ?
i. The group itself
ii. Government agencies
How to form an SHG
Understand and gather information about people, environment, life-style, socio-economic status, earning options etc. Call PWDs in an informal meeting for interaction. Initiate discussion on issues, gradually suggest idea of SHGs, narrate advantages through success stories, do not make undesired commitments, establish rapport to win their confidence, motivate them to buy the idea of forming SHG.
Formation Stage :
Call the PWDs, agreed to form SHG. Explain basic guidelines such as criteria for membership, saving, loans, rate of interest, penalty for non-attendance of meeting, role and responsibilities. If group agrees on the aforesaid points, then elect 2-3 leaders in a democratic way, and ensure rotation of leadership . Initiate process as follows :
i. Call meeting at regular intervals [fortnight/monthly] to discuss problems, issues of common welfare, activities such as income generating, capacity building, skill development and record minutes of each meeting in meeting book. Ensure that each member participates in discussion.
ii. Collect monthly amount within the range of Rs.20/- to Rs.100/- or as decided by group and rotate this common pooled resource among its members. Maintain transparency in recording of inflow and outflow of funds.
iii. Pass a resolution to open saving account in the name of SHG which will be operated by 2 or 3 authorised persons. Rotate the fund through this account. Keep small hand balance for urgent needs. The interest rate should be same for all members and loan should be given to member for productive and consumption needs, on interest as decided by members.
Credit linkage :
Self Help Group may be linked with Government schemes such as SGSY, NHFDC, SC/ST Finance Corporation, R.M.K., financial institutes like NABARD, SBI, funding agencies like CASHE, CARE, BASIX, Action Aid India etc. There are two types of linkage.
Direct Linkage : Funding/Financial Institute® SHG Members
Indirect Linkage : Funding/Financial Institute® NGO ® SHG ® Members
Eligibility Criteria for linkage
Active existence for more than six months having Saving Account, Regular thrift, meeting, on lending of loan to members, evidence of transparent record maintenance.
Quantum of Bank loan Repayment
Group fund to bank loan in a ratio of 1:2 to 1:4. In deserving cases beyond 1:4. The loan should be repaid in monthly or quar terly instalments; nor mally maximum period not exceeding three years with reasonable moratorium period.
Loan upto Rs. 5 Lakh for NGOs and Rs. 25,000/- per beneficiary is available under NHFDC scheme.
Components of SHG Fund
Saving, interest, penalties/fines, group profit and grant received (balance in SB A/c + Hand Balance + Loan to members + Investment)
Formalities for Linkage
The eligible SHGs should pass a resolution to avail loan. The kind of documents and formalities to be observed differ from one supporting institute to other. The SHG should obtain linkage guideline from concerned supporting funding institute.
Whom to contact
For further detail contact :
Child Development Programme Officer [CDPO]
Nearest Bank, District Lead Bank Manager
NGOs, assisting Self-Help Groups
District Social Welfare Officer [DSWO]
The Director, Mission Shakti, A-30, Bhauma Nagar, Unit-IV, Bhubaneswar-751 001. Ph: 0674-2502245/2502254/2502255. Fax: 2502255
Source : http://dget.gov.in/