Empowering Communities, Strengthening India: SHGs as Catalysts for India's Self-Reliance

Abstract

Self Help Group (SHG) Bank Linkage Programme (SBLP) is an effective program for poverty alleviation and women empowerment in India. This program was started by the National Bank for Agriculture and Rural Development (NABARD) in the year 1992. Under this program, banks are allowed to open savings accounts for SHGs. SHG is usually a community group of 10-12 women from similar socio-economic background. They form these alliances to pool their financial resources to undertake joint economic activities or to lend money at reasonable interest rates to members to start small businesses. The core of this group involves pooling of resources to enable financial stability and self-employment for women. It is a voluntary association of persons. It also helps people to enhance their skills through training and empower themselves through collective decision making. These groups mainly focus on empowering the marginalized sections of the society, especially women