Question

In your locality/neighbourhood, you might notice self-help groups providing credit. Attend a few meetings of such self-help groups. Write a report on the profile of a self-help group. The profile may include, when it was started, the number of members, amount of savings and type of credit they provide and how borrowers use the loan.

Answer 1

Name of the SHG: Shakti Mahila Self-Help Group
Year of Formation: 2022
Number of Members: 12 women
Monthly Savings per Member: ₹ 500
Total Monthly Savings: ₹ 6,000
Type of Credit Provided: Small loans to members from the group’s savings and, when required, through bank linkage.

Uses of Loans by Members:

• Starting small shops or tailoring work
• Buying livestock such as cows or goats
• Purchasing seeds and fertilisers
• Paying school fees
• Meeting medical expenses
• Buying equipment for small businesses

The SHG works as members meet regularly, deposit their savings, discuss loan requirements, and collectively decide who should receive credit. Loans are generally provided at a reasonable rate of interest and are repaid in instalments.

Conclusion: Self-Help Groups encourage saving, easy access to credit, self-employment and financial independence, especially among rural women.