A Self-Help Group (SHG) is a group of people having homogenous social and economic backgrounds voluntarily coming together to save regular small sums of money, mutually agreeing to contribute to a common fund and to meet their emergency needs on the basis of mutual help. Also it is a group of people who pool in their resources to become financially stable by taking loans from the money collected by that group and by making everybody of that group self-employed.

Features:

• The group helps to gain collective energy to do collective work.
• The group can take the advantage of the developmental schemes.
• The group can take the good economic policy for the development of the society.
• Taking active participation of the developmental scheme’s planning, implementation and evaluation.
• The group helps to inculcate the habit of Self Help.
• Helps the villagers to activate their passive potentiality.
• Develop the habit of savings amongst the group members.
• Helps to strengthen the mentality of the group members to develop the socio economic condition of the society.
• Analyze the common problems faced by the villagers and develop solutions for those problems.
• Increase alertness among the villagers for their development.
• Help the villagers for optimum utilization of resources available in their nearby areas.
• Increase the knowledge of techniques among the group members.
• The group communicates with the financial institutions or banks to get group loan.
• Helps the members of the group to get small micro loan from the group savings.
• Make liable to all the group members to get loan from financial institutions or banks.