Full formOrganisations
SHGstands forSelf Help Group
Full Form of SHG
What is SHG?
A Self Help Group (SHG) is a small voluntary association of individuals, typically 10 to 20 members, often women, from similar socio-economic backgrounds, who come together to save small amounts regularly, pool their savings, and provide internal loans to members. In India, SHGs are a cornerstone of microfinance and rural development, enabling financial inclusion for the unbanked. The SHG movement gained momentum in the 1990s through the National Bank for Agriculture and Rural Development (NABARD) and later under government programs like the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM). SHGs are used across rural and semi-urban areas for savings, credit, and social empowerment. Members are trained to manage accounts, resolve conflicts, and undertake collective livelihoods. Banks provide collateral-free loans to SHGs under the SHG-Bank Linkage Programme, promoting entrepreneurship and poverty alleviation. For competitive exams like UPSC, banking, and rural development tests, understanding SHGs is essential as they represent a key strategy for women empowerment and grassroots economic development. Their impact extends to health, education, and social justice, making them a powerful tool for inclusive growth.
SHG का फुल फॉर्म
स्वयं सहायता समूह
Example
The women in the village formed an SHG to save money regularly and later accessed a bank loan to start a poultry business.
SHG — frequently asked questions
What is the full form of SHG?
SHG stands for Self Help Group, a small voluntary association of people, usually women, who save together and provide mutual loans.
How are SHGs linked to banks in India?
Under the SHG-Bank Linkage Programme, SHGs open savings accounts and become eligible for collateral-free loans, enabling members to access formal credit.
What is the role of SHGs in women empowerment?
SHGs empower women by providing them with a platform to save, access credit, and engage in income-generating activities, boosting their financial independence and social status.