🤝 Operational Methodology of a Self Help Group (SHG)

The SHG model follows a step-by-step process that empowers rural women through collective action, financial discipline, and sustainable livelihood development.

🏘️ A. Village Meeting by MFI (Microfinance Institution)

This is the initial step, where awareness is created in the village.

• Women are mobilized to participate.

• The concept of SHG is introduced.

👭 B. Group Formation

Core to the SHG methodology:

• Members are usually homogeneous (similar socio-economic background).

• Participation is voluntary.

• Ideal group size: 10–20 women.

📚 C. Group Training (5–7 days)

Capacity-building phase:

• Covers SHG procedures: savings, lending norms, repayment schedules, etc.

• Teaches business development skills, record-keeping, and income-generating activities.

• Encourages leadership and self-governance.

📆 D. Weekly Group Meetings

Regularity builds discipline and unity:

• Members mobilize savings.

• Loans are disbursed and repaid.

• Discussions include group matters, planning, and problem-solving.