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Advantages And Disadvantages Of Self Help Group

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What are Self-Help Groups?
The Self-Help Groups are informal associations of people who choose to come together to find ways for the betterment of their living standard. The SHG’s in India help to build social capital among the poor section of society, especially women. The Self Help Group (SHG) is a small voluntary association to form a group. It is informal and homogenous in nature of not more than twenty members. It basically consists of maximum 20 members as any group having more than 20 members has to get registered under Indian legal system. It is informal to avoid bureaucracy, corruption, unnecessary administrative expenditure and profit motive. The SHG is a home grown model for poverty reduction which also works to empower and shape the lives of its …show more content…

Challenges faced by Self-Help Groups in India:
The following are the challenges faced by SHG’s in India:
1. Inefficient marketing: TheDistrict Rural Development Agencies (DRDAs) organize melas of the products of SHGs on regular basis. These exhibitions are organized at the block and district levels. But, the frequency of such melas is very less. On account of this, SHG members do not have a regular link with markets for selling their products.
2. Hurdles in getting loans: Banks do not trust the SHG members and the office bearers. Bank defaulters have further aggravated this problem. In some cases, some members who are running successful find it difficult to get loans due to the presence of defaulters in their family.
3.Irregular meetings: SHGs should meet regularly once in a week/fortnight/month as per the rules decided by the members. This is to provide a platform for discussing various common problems and enable smooth functioning of SHGs. But in reality, monthly meetings are not taking place as per the rules of the SHG. This results in lack of interest in running their

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