An SHG consists of 10–20 women from the same locality.
These women save small amounts—like ₹50 or ₹100 per month—and build a fund. This pool of money is used to help group members when needed.
SHGs also help members benefit from:
- Government schemes
- Bank loans
- Skill training
- Business opportunities
How to form an SHG?
To start a group:
Gather members: At least 10 women from your village or neighbourhood willing to work together regularly.
Assign roles: Appoint a President, Secretary, and Treasurer within the group.
Start saving: All members should contribute a fixed monthly amount.
Open a bank account: Create a joint account in the group’s name at a nearby bank. Documents needed include Aadhaar cards, passport-size photos, and a list of members.
Register the group: Visit your local block or panchayat office to register the SHG. Registration makes it easier to access official benefits.
Benefits after registration
Collateral-free bank loans: Up to ₹20 lakh
Interest subsidy: Government pays the difference up to 7% interest, capped at ₹3 lakh
Revolving fund: Assistance of ₹20,000–₹30,000 for operational needs
Business support: Up to ₹5 lakh for individuals and ₹25 lakh for SHGs
Real-life example
Shashi Bahuguna Raturi from Uttarakhand launched the ‘Namakwali’ brand with other women. Today, it supports over 500 women across 110 villages.
Where to get more information
Visit your local panchayat office, block development office, or the official website of the Ministry of Rural Development for more details.
(Edited by : Anshul)
First Published: May 16, 2025 12:33 PM IST
