The ideas behind the formation of SHG is really innovative . explain
Answers
SHG or Self Help Group as it is known is a to make the people of below poverty line self-reliant by increasing their income, improve their standard of living and status in society and also by bringing this section closer to the main stream.They function on the basis of co-operative principles and provide a forum for members to extent support to each other. It is considered is a means of empowerment. It helps poor people who do not have access to financial system in the organised sector. They are regarded as one of the most significant tools to adopt participatory approach for the economic empowerment of women.
Generally all members of the group should belong to families below the poverty line (BPL).The group shall not consist of more than one member from the same family; a person should not be a member of more than one group. The BPL families must actively participate in the management and decision making.
The group follows a code of conduct to bind itself through regular meetings in a democratic manner through free exchange of views, participation by the members in the decision making process. It must draw up an agenda for each meeting and take up discussions as per the agenda.
The members build their corpus through regular savings. It collect the minimum voluntary saving from all the members regularly in the group meetings. They agree to save regularly and convert their savings into a common fund known as Group Corpus. The members of the group use this common fund and such other funds that they may receive as a group through a common management .This can be used to provide advance loans to the members through a participatory decision making process. They prioritise the loan applications, fix repayment schedules, fix appropriate rate of interest for the loans advanced and closely monitor the repayment of the loan installments from the loanee
The ideas are really innovative of SHG.
They understand the situation of the people who are facing problems socially and mentally having lot of issues in livelihood and they interact with them to help and motivate them to come across the problems.
SHG also helps people who face financial crisis and family problems and try to convey enthusiasm in their mind so they would never give up.