Self Help Groups (SHGs)
It is a small, economically homogeneous group of unreached rural poor, voluntarily formed to save and mutually agreed to contribute to a common fund to be lent to its members as per group decision. The group need not be registered. The optimum membership of the group was conceived at 10 to 20.
The broad focus and features of the groups were as under
- To maintain informal status and participative charter
- To be large enough to allow economies of scale to operate
- To meet the emergent consumption needs and to learn the nuances (meanings and/tones) of financial discipline; and
- To eventually access bank credit as a logical corollary (idea/fact) to the internal lending function.