What Are Self Help Groups (SHGs)?

Self Help Groups, usually shortened to SHGs, are small community organised groups, often of women, that pool savings and support each other's livelihoods, a model that has become genuinely widespread across rural India.

What actually defines them

A small group, typically ten to twenty members, who pool regular savings and provide mutual financial support.
Widely supported by government programmes, including through the National Rural Livelihood Mission, alongside independent and NGO backed groups.
Often move beyond savings into shared livelihood activities, including food processing, handicrafts and small scale production.
Provide a structure for accessing microfinance and training that would be harder for an individual to access alone.
A genuinely significant part of rural economic activity in India, not a niche or marginal model.
Membership is generally voluntary, with groups forming around shared community ties or a common livelihood interest.

Picked this week

Products from SHG-supported processing

Khutmili Farm II · Khutmili

Black Gram Whole

$0.93 · 1 KG

Organic Kathiya Wheat

$62.24 · 100 KG

Out of stock

Our standards

Self help group questions

Are SHGs only for savings and finance?: Many expand into livelihood activities like food processing or handicrafts, beyond their original savings function.
Is this a government programme or independent?: Both exist, government supported groups through programmes like the National Rural Livelihood Mission, alongside independent and NGO backed ones.
Are SHGs mostly made up of women?: Historically and currently, yes, though mixed and men's groups exist too, women's groups are the more common model.
How large is a typical SHG?: Often ten to twenty members, though exact size varies by group and region.

Comments

Loading comments…