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A Self Help Group (SHG) is a small, economically homogeneous affinity group of resource poor people, voluntarily formed to save small amounts convinient to all the members and mutually agree to contribute to a common fund/ corpus to be lent to its members for their emergent productive and consumption needs as per the decision of the group.

Needs for SHG:

The poor in villages are in capacitated due to various reasons, such as, most of them are socially backward, illiterate, low motivation and poor economic base. Individually a poor is not only weak in socio-economic condition but also lacks access to the knowledge and information, which have become most important components of today's development process. However, in a group the poor are able to overcome many of these weaknesses. In specific terms the need for SHGs are as under:

• To mobalise the resources of the individual members for their collective economic development.
• To uplift the living condition of the poor.
• To mobalise individual skills for member's interest
• To create a habit of savings
• Utilization of local resources to improve the socio-economic condition of the village
• To create awarness about the rights
• To assist the members financially in time of need
• To improve the Co-ordination of the group members
• To develop Self Confidence
• To identify the local problems
• To collect Informations, analysis and action
• Self Economic development among SHG's Group Members
• Proper Observation on development works(monitoring)
• To act as a media for social development of the village
• To develop linkages with institutions and NGOs
• To organize and guide the community
• To be an example for others in self employment
• To give training for skill development
• To avail facilities from group schemes
• Encouraging Self employment
• To gain mutual understanding
• Entrepreneurship development
• To build teamwork