Self-Help Groups (SHGs) are grassroots-level voluntary associations, typically composed of women, that aim to foster financial inclusion, social empowerment, and community development.

Definition, Structure, and Evolution of SHGs

1.Definition of SHGs

SHGs are small, voluntary groups of individuals—usually women—who come together to save regularly, pool resources, and extend loans to members for economic or social purposes.

They operate on the principles of mutual trust, peer pressure, and collective responsibility.

2.Structure of SHGs

i.Membership: Typically consists of 10–20 members from similar socio-economic backgrounds.

ii.Leadership: SHGs are self-governed with rotating leadership roles to ensure inclusivity.