SHG (Self Help Group)

Self – Help Group (SHG) Promotion Program

A savings and credit self-help group (SHG) promoted by RRAFDC is an informal association of 15 to 30 socio-economically homogeneous, poor women from a single village or hamlet, who organize meeting regularly to transact the business of savings and credits. About 10-12 mature SHGs in a geographically contiguous area form a cluster. The cluster is a forum for cross learning, inter-group problem solving and solidarity.

Why does RRAFDC promote SHGs?

RRAFDC begins work in an area by promoting SHGs because:

  • Credit is a key input for livelihood promotion through income generation activities and SHGs are a potentially powerful vehicle to mobilize credit from their own regular savings and the revolving fund from other supporting organizations.
  • Savings and credit is in itself a useful livelihood enhancing service for poor, ultra poor and dalit people.
  • It has proven to be a highly effective way to organize women for livelihood promotion as well as broader social and political empowerments.

RRAFDC develops SHGs as an independent community based associations that would be able to leverage and mobilize credit from their own internal management and external sources without its extra and regular support and supervision. The SHG is also an effective platform through which RRAFDC can assist and co-operate poor, dalit, marginalized families, landless and women take up income generating activities to improve their livelihoods. RRAFDC continued to promote SHGs during the year to expand the outreach of each project team so that there would be several SHGs in the project locations to work for the enhancement of livelihood in a compact area.