Micro Finance - Self Help Groups

ASelf Help Group (SHG) is a group of rural poor who have volunteered to organize themselves for the eradication of poverty of the members within a timeframe of three years. The Government of India (Ministry of Rural Development) has provided a broad policy framework and guidelines towards the operation of these Groups under the Swarnajayanti Gram Swarozgar Yojana (SGSY) scheme.

Objectives
The members of an SHG agree to save regularly and convert these savings into a common fund. This fund along with other money, such as assistance from governmental agencies and loans from banks, is managed commonly by the group towards a common economic goal.

The pain points for SHGs are

  • Time-consuming travel to the bank which also adds to the costs.

  • Improper maintenance of SHG account books.

  • Lack of information on schemes and programs.

  • Lack of market information.

  • Lack of transparency and accountability.

The District Rural Development Authority, Eluru, and CoOptions Corporation Limited have partnered to develop an Integrated Information system for SHGs, Mahila Sphurthi 1.0, to address these pain points.

  • Bridge the digital divide to bring world wide information to the door step of the villager.

  • Provide—a one-stop centre for all activities—in less time and with less effort.

  • Provide expert guidance about agri inputs & outputs, pesticides and market prices, market trends.

  • Provide information about sanitation and health.

  • Increase the community service levels and offer quality service.

  • Provide access to global markets for rural products and open a window for emerging markets.

  • Encourage women and children by providing awareness on myriad benefit schemes and other required information.

  • Provide communication with the bank, MPDO, MRO and other agencies.

  • Community empowerment by grievance handling.