To join a Self-Help Group (SHG) in India, you can connect with an existing group or form a new one with other interested individuals. Government missions, non-governmental organizations (NGOs), and banks often facilitate this process. SHGs are typically composed of 10 to 20 members from similar socioeconomic backgrounds who meet regularly to pool savings and provide mutual support.
Find an existing Self-Help Group
- Government programs: The government promotes SHGs through initiatives like the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM). Visit your local Block Development Office or Panchayat office to inquire about SHGs in your village or area.
- NGOs and community facilitators: Many non-governmental organizations (NGOs) work at the grassroots level to form and nurture SHGs. Reach out to NGOs in your region or ask community leaders about existing groups. Trained facilitators called “animators” also help organize and guide new groups.
- Community organizations: Approach local community centers, religious institutions, or social welfare organizations. They may have information on existing SHGs or be able to put you in touch with a group.
- Contact banks: Commercial, regional, and cooperative banks are often linked with SHGs under programs like the NABARD’s SHG-Bank Linkage Programme. A bank can help you find a group in your area.
Form a new Self-Help Group
If you cannot find an existing group that meets your needs, you can start your own with these steps:
- Gather members: Find at least 10 and no more than 20 like-minded people who live in the same area and have a similar social and economic background.
- Assign roles: Elect a leadership committee, which typically includes a President, Secretary, and Treasurer. Rotate these positions to give members leadership experience.
- Create guidelines: The group should collectively decide on rules, including the amount and frequency of savings contributions, the loan terms and interest rate for internal lending, and penalties for non-attendance.
- Open a bank account: Open a joint bank account in the name of the SHG. This helps with managing collective savings and is a step toward accessing government funds and bank loans.
- Maintain records: Keep up-to-date records of meetings, attendance, savings, and loan transactions. Accurate record-keeping is a vital aspect of a well-functioning SHG.
- Seek official registration: Register your SHG with your local block or panchayat office. Formal registration can help your group access government benefits and bank loans.
How to choose the right SHG
- Understand your goals: Determine what you want to achieve by joining an SHG, whether it’s financial assistance, skills training, or social support.
- Assess group dynamics: Attend a few meetings to observe how members interact. A healthy group should have a respectful and supportive atmosphere where members feel comfortable sharing.
- Confirm eligibility criteria: Some government schemes have specific eligibility requirements, such as income limits or demographics. Make sure you meet the criteria for the group you are considering.
