Self Help Group – Need and Functions
Self Help Group is mechanics in micro financing to provide the all possible financial help to poor by the group of poor.
Basically, Self Help Group is a group of people formed with an aim to uplift themselves socially and economically in a better way.
In a self help group , there may be 5 to 20 members.
Rural people mainly poor people in our country are unable to get loan instantly from any where even Govt. banks. It is a harsh reality that many govt. or local bodies don’t want to give loan to poor. They thought that there may be more chances to be NPA.
This problem leads to the creation of group named Self Help Group.
Need of Self Help Group- There are several need of self help groups. Here we are listing some of them that are important for IBPS exam point of view.
1-To develop the habit of saving in people so that they can become economically better
2-To circulate the money so that it may be used in growth
3-Learn the people to fight with poverty
4-To create the ability of teamwork
5-develop the leadership quality
6-To spread the financial awareness among poor people
7-To make habitual to help each other financially
8-To catch the problem and find the solution by a healthy discussion in group
9-To develop the quality of Entrepreneurship
Self Help Group Functions- The main functions of self help group are to help the poor people and add them in the main stream of our country.
1-Regularly Meet- The basic rule of any group is to meet and discuss regularly so that there may not be any communication gap.
2- Discuss about Problems– Every member has right to discuss his problem with other so that it can be resolved by the group members very soon.
3- Save Regularly- Saving should be saved by each member on a fix date.
4-Loan Sanction– Self help group can give loan to any member in his need.
5-Recovery of Loan– Self help group has full rights to recover the loan from any member.
6- Account Operation– Self Help group has to give authorization to three members to operate the SHG account with the signature of any two.
7- Transparent Record– Self Help Group has to maintain transparent and correct record of each and every transaction.
8-Decision Making- Self Help group can decide on any topic by the signing of all members or can pass any resolution or can make any rule by the help of signing process.
Some Important Points of Self Help Group-
- Every member is not liable to earn interest on his deposit.
- All the terms and conditions regarding loan is applicable as per RBI and NABARD guidelines.
- Any SHG can link with a certain NGO by fulfilling some conditions.
At last we wish you all the best for your bright and successful future. We will always try to support any person in any condition by the help of GOD.
ALL THE BEST.