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SELF HELP GROUP

(SHG) Model

Overview

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Challenge for the poor 

 Access the finance to meet the diverse needs on

Required amount

Within short period

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Introduction

Basic Principle

Pillar A:Helping each other 

Pillar B:Unity is strength

SHG

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 or!" of SHG"

Important contriution of !H" towards poverty

alleviation#

$ollowing financial discipline

Protecting the vulnerale from shoc%s

Introducing saving culture within the memers

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Structure

!H"

&O#'(

!H"

&O#')

!H"

&O#'*

&eighour 

 "roups

&etwor%ing

$ederation

Formation# Based on +lass,+ast (Informal Group)

Socio Economic Condition# !ame ( Homogeneous)

Formation# -egal .ntity

  /0A+s,+o1op or !ociety,2rust

  (Formal Group)

Services: +redit 4 +redit 5

  (Heterogeneous)

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Loan operation and general ti!eline"

Activit$ D"ration needed

!H" $ormation (st 0onth

Open an% account )nd 0onth

Internal lending @ 0onth

.ligile for an% loan 'r C () 0onths

Loan Amo"nt ()s*+ Loan period

(st -oan )6

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SHG"$ PRO" % CO"

&, SHG-S P.&,/ .F 0&E

PLSES %&,SES

$le?ile &eed more management s%ills and time

&o need for an% at all depends on memers accountaility

Highly empowered can e hiDac%ed internally and e?ternally

0emers can save 4 orrow as needed +ash may not e secure

+an evolve from e?isting group

&, BA,4S P.&,/ .F 0&E

PLSES %&,SES

-ower transaction cost Hard to monitor  !aving moili>ation easier !low to develop

+an uild on e?isting group 0ay form own federation

+an fit into any ranch 0I! is more comple?

  &eed highly committed !taff to develop groups