Self Help Groups- A ray of hope towards reducing vulnerability?

“Vulnerability is not winning or losing; it's having the courage to show up and be seen when we have no control over the outcome" 

During a midst of the crisis where almost every person is wondering when would  this could get over. Almost every person in our contact list is worried about their future, be it a school child who’s worried about staying at homes for so long or be it a college student, who’s worried about their end term examinations, be it a student who was preparing for any competitive exam. Our parents, our elders or anyone who’s self employed or works in an organisation are worried. Similarly, a person who’s our maid, or any vulnerable sections of our society must be worried. 

Today everyone is aware about the most vulnerable sections of our society i.e women, Scheduled Caste, Scheduled Tribes, poor migrants, workers. In India, despite the promising GDP growth or various schemes implemented we still find poverty in rural areas and not everyone has access to the things. It can also be called as the most intractable problems of the society.

"Women are the largest untapped reservoir of talent in the world- Hilary Clinton"

Today, I am going to share a brief introduction about self help groups, which is one of the financial intermediary programme who has helped in uplifting the vulnerable sections of society since 90's by providing credit facilities. Self Help Groups have gained a lot of momentum in past few decades in India as a grassroots model for achieving Millennium Development Goals (MDGs) or Sustainable Developmental Goals (SDGs).These are an informal organisation with some members usually 5-6 who are dedicated towards their formed groups and be a part of change towards empowerment. Self help groups are an integral part of women empowerment. The group members collectively save a minimum amount from their income each day, or weeks or months. After a certain amount which is collected by the main head, it’s then provided to a group member whosoever requires it. Usually, the self help groups are created to provide credit facilities to the group member who is in an hour of emergency. 

The groups are basically formed to mobilise the poor people specially the women for the mutual benefit of all the group members. SHGs are playing crucial role in getting easy access to the credit facilities and in reducing social inequalities. 

Features of Self-Help Group: 

• People form their personal groups for the purpose of savings and also lend money among themselves. 
• Rate of interest is lower than informal service providers. 
• They can also avail loans from banks if their savings are regular.
• Repayments of the loans are collected by the group leader and paid to the respective bank.

Functions of Self Help Groups:

• To encourage habit of saving. 
• To enhance confidence  and capabilities of women.
• To develop collective decision among women and poor people. 
• To motivate women taking up social responsibilities. 

Photo Credits: Imago Global Grassroots

Self Help Groups combat the pandemic?

Women Self Help Group has risen to do the extraordinary challenge amidst the pandemic. While, India was falling short of masks, sanitisers and different protective equipment. According to Ministry of Rural Development, Government Of India, more than 27 million masks have been produced by some 20000 SHGs across 27 states.

Over 90 percent of India's districts, away from the limelight of the cities, SHG women are producing masks, running community kitchens, providing food supplies. There have been many SHG women who are continuously working day and night in playing a critical role during the toughest times our world had ever seen.

"Women at the centre of development has been an important story in South Asia. In these extraordinary times, when we are all united in our fight against Corona Virus, these women's are playing the most important role" 

                                                               - Junaid Ahmad (World Bank Country Director of India)