SHG(Self Help Group)
Stewards Trust has covered 13 villages in Koroan and Shankergarh Blocks of Allahabad District under SHG. Stewards Trust has formed 32 SHGs since 2000 having 416 members. In 32 SHGs Rs. 87360/- have been saved which group members utilize at the time of their need. 182 members from different groups have started their small income generation programmes e.g. poultry, buffalo rearing, goat rearing, rural shop etc. with the help of loan taken from bank in the name of group.
Need for SHG
- Bank requires a number of documentation formalities which cannot be fulfilled by poor, suppressed and illiterate women,
- For small deposits (Rs. 15 to 50/- per month) banks are not ready to open their account
- Going to banks for such a small saving amount is not economical (banks are situated approximately 15 – 25 km from these villages)
- Women are not allowed by their husband/in-laws to go out and do banking. With these conditions, the people go to private moneylenders who provide loan on high rates of interest (10 – 15% per month)
Benefits of SHG
- Economically poor women gain strength as part of a group.
- Besides, financing through SHG, it reduces transaction costs for both lenders and borrowers.
- SHG empowers poor women in rural areas.
- SHGs reduce the influence of informal lenders in rural areas who charge the high rate of interest on a loan (10-15% per month)
- SHG provides a common platform for women to discuss their problems and find a solution.
- Through SHG women become united and empowered.
- Bank loans to SHGs help women to start their own small business and increase employment in rural areas.
- Women have control on finances thus better living condition in family and society.
- Recognized by the government (banks and block).
- Banks provide a loan to SHG for creating small rural based employment on the high subsidized rate.
Policies and Condition of SHG
It typically comprises of members from homogeneous social and economic backgrounds. All group members have to save an equal amount of money on a monthly basis which is mutually agreed. Conduct monthly meeting and record the minutes of the same. Update members’ (individual) passbook and the ledger book. Provided loan to group members and/or village people after having the consent of all members on the minimum interest rate (interest rate is decided by group members mutually). President, Secretary and Treasurer are elected by group members from within. These posts are on rotation basis i.e. after one-year (or as decided by the group) re-election will be held and new members will hold the post. Once the SHG has an open bank account, group saving must be deposited in the saving accounts monthly. Each member of the group must know (or have training) on group activities.