Self Help Group!

India has some of the poorest social indicators in the world. Domestic violence is very common amongst the poor and uneducated section of society, especially against women as they are considered weak and docile. In order to help such women gain confidence and fight against domestic violence, government has started “self-help groups” in many parts of rural India. Based on the concept of “self-help,” small groups of women are formed and operate a savings-first business model whereby the member’s savings are used to fund loans. The results from these self-help groups (SHGs) are promising and have become a focus of intense examination as it is proving to be an effective method of poverty reduction.

A SHG is a group of about 10 to 20 people, usually women, from a similar class and region, who come together to form savings and credit organization. They pooled financial resources to make small interest bearing loans to their members. This process creates an ethic that focuses on savings first. The setting of terms and conditions and accounting of the loan are done in the group by designated members. These groups were initially started by NGO’s. Supervisors from these NGO’s ensured that the women had the means and the discipline to repay the loans and more importantly, they could conduct the transactions independently. So, they encouraged the group to elect their leader and build common group savings for a few months. The group leader, who was generally educated enough to read and write, collected the members’ savings and recorded it in registers. The members were told to borrow from the pool and pay back through regular, periodic payments and keep a record of the transactions. Once this fund grew and the supervisor had endorsed the group’s credit worthiness, the bank granted them loans.

The formation of common-interest groups consisting primarily of women has had a substantial impact on their lives. The status of women has generally improved as they have developed stronger confidence which has changed gender dynamics and their role in the household. In south India, significant improvements in fertility rates, female literacy, participation in development programmes and economic independence are evident. Women are able to fight for their rights and entitlements and have emerged as a force to be reckoned with. Further, SHGs are becoming more than just financial intermediaries, instead they have emerged into a more political and social unit of society.

This kind of economic revolution is very essential in a country like India where women are dominated and ill treated in all sections of society, especially in the poor and underprivileged section of society. It’s important for women to establish their own identity to be able to muster courage to raise their voice against injustice done to them. For that, they need to have economic independence and confidence to manage their households without the need to be dependent on their husbands.

Lakhmidevi, 25, the leader of Maramma Swa-Sahaya-Gumpu, (SHG), for example operates her group’s account from this bank. She has been instrumental in the closing of arrack shops in Kanminike village on the Mysore Road where she lives. “The entire group of 15 members and our children protested before the arrack shops to put an end to the intoxicated men beating their wives and children. We refused to budge till they agreed finally,” says Lakshmidevi proudly. “The training the group has received from various government and non-government organisations on leadership and bookkeeping has boosted their confidence and self-worth,” says another member of the group, Hanumakka.

If such groups become operative in every part of our country, the day will not be far when we would be proud to have a society where there is no oppression on gender basis and everyone is contributing equally towards a common objective of country’s development.