SHG Capacity Building & Financial Inclusion

Background

Women in rural areas often lack agency in household financial decisions. Self Help Groups (SHGs) serve as a fundamental platform for economic empowerment and social cohesion.

Need / Problem

While many SHGs existed, they suffered from poor bookkeeping, lack of financial literacy, and an inability to access larger institutional credit for scaling micro-enterprises.

Objectives

• Strengthen internal governance of existing SHGs.
• Provide comprehensive financial literacy.
• Promote entrepreneurship among rural women.

Target Community

Women from marginalized and economically weaker sections.

Intervention & Implementation Approach

Intervention: Intensive capacity building, grading of SHGs, and facilitating credit linkages for enterprise development.

Approach: Training of Trainers (ToT) model, utilizing Community Resource Persons (CRPs) to ensure continuous handholding at the village level.

Key Activities

• Training on the 'Panchasutra' (five cardinal principles).
• Workshops on book-keeping and audit preparation.
• Exposure visits for successful enterprise models.

Outputs & Outcomes

Outputs: Over 75,000 women mobilized into robust community institutions.

Outcomes: Enhanced savings habits, transparent internal lending, and successful launch of women-led group enterprises.

Long-Term Impact

Elevated the decision-making power of women within their households and established them as active contributors to the local village economy.

Learnings & Sustainability

Learnings: Continuous mentoring is required for the first 12 months to ensure an SHG becomes functionally independent.

Sustainability: By linking SHGs to federations, they gain structural stability and collective bargaining power for their products.

Photographs