The operational methodology of a Self Help Group (SHG) involves several structured steps designed to empower members, build financial discipline, and foster sustainable livelihoods. These typically include:
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A. Village meeting of women in villages by MFI (Microfinance Institution): This is often the initial step where awareness is created and women are mobilized to form groups.
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B. Group formation: Core to SHG methodology, members are typically homogeneous and voluntarily come together to form a group.
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C. Group Training for 5-7 days on procedures and business development skills: This ensures that members understand how the SHG functions, including savings, lending, bookkeeping, and income-generating activities.
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D. Group meeting once in a week for mobilizing saving, disbursing and repaying loans: Regular meetings are essential for maintaining financial discipline and group cohesion.