Self Help Group in India

The decade of 1990s, witnessed a rapid SHG movement. The setting-up of NABARD and the introduction of SHG-bank linkage programme by NABARD acted as a catalyst for the development of SHGs.

The SHG-Bank Linkage Programme is the key strategy for delivering financial services to the poor in a sustainable manner.

Challenges

• Several bankers have negative thinking about SHGs due to low and failure in repayment of loan on time.
• Lengthy process in the opening of savings bank account and credit linkages.
• Variations in interest rate of various banks.
• Chronic opinion of family members about SHGs.
• The old and out-dated social outlook to stop women from entering in the field of entrepreneurship is one of the reasons for their failure.
• Challenge to gather women at a place.
• Fear to take self-decision by women.
• Lack of will-power, strong mental outlook and optimistic attitude amongst women.
• SHG gets few amounts as a loan during the time of first linkages.
• Sustainability of SHGs.

Suggestions

• SHGs are not availing facilities provided by the government; therefore it is important to generate awareness among SHG members.
• It was found that majority view cooperation from public representatives important for self-reliance of SHGs. Hence, public representatives have a role to play in empowerment of women SHG.
• All record keeping has been done manually and that is very time consuming. Thus, a computer and computer-assisted programmes would go a long way.
• There should be timely release of funds and its channelization.
• There is also a need for timely and quick approval of proposed activities.
• Marketing centres should be provided within the village to ensure better selling of products.
• There should be more budgetary allocation on market development in order to provide an effective platform for marketing of SHG products.