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Women’s Self Help Groups (Mahila Bachat Gat)

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Topics

  • Introduction
  • Definition: Self-Help Group (SHG)
  • Features
  • Process
  • Comparison: SHG vs Moneylender
  • Real-Life Application
  • Key Point Summary
Maharashtra State Board: Class 11

Introduction

Dr. Muhammad Yunus founded the Grameen Bank in Bangladesh (1983), showing how small, collateral-free loans (microfinance) could help poor women start small businesses and escape poverty. Inspired by this, Self-Help Groups (SHGs) became popular in India, especially to empower women and encourage collective efforts against poverty.

Maharashtra State Board: Class 11

Definition: Self-Help Group (SHG)

A voluntary group of usually 5-20 women who regularly save money, create a common fund, and give small loans to each other, without any collateral.

Maharashtra State Board: Class 11

Features

Maharashtra State Board: Class 11

Process of Self-Help Group (SHG)

Maharashtra State Board: Class 11

Comparison: SHG vs Moneylender

Maharashtra State Board: Class 11

Real-Life Application

Sunita from rural Maharashtra joined an SHG. She took a ₹2,000 loan from her group fund to buy a sewing machine. Over time, Sunita began earning ₹4,000/month by stitching clothes for locals and even helped other women learn tailoring.

Maharashtra State Board: Class 11

Key Point Summary

  • SHGs help women save, borrow, and start businesses- boosting incomes and teamwork.
  • Members gain confidence, leadership, and respect in their families and communities.
  • SHGs help fight poverty and dependence on high-interest moneylenders.

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