Self-Help Groups (SHGs)

• Description: SHGs are small groups of individuals (usually women) who come together to form a collective. They save money collectively and provide small loans to members. The SHG acts as a microbank, pooling resources and lending to each other.
• Success Story: Widely successful in India, where the SHG model is supported by the National Bank for Agriculture and Rural Development (NABARD). Millions of rural women have accessed credit, improved livelihoods, and reduced poverty levels through this model.
• Key Features:
• Focus on women’s empowerment
• Collective decision-making
• Peer pressure to ensure loan repayments
• Low operational costs