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Guidance and evaluation

A handbook on forming self help groups

A guide to forming self-help groups

Authors: ; National Bank for Agriculture and Rural Development
Publisher: National Bank for Agriculture and Rural Development, India, 2005

Full text of document

This handbook aims to help a reasonably educated local person to form a self help group (SHG) in their community. The setting up of SHG’s encourages a community to solve its own problems through saving money and communicating collectively.

The booklet concentrates on the following aspects of self help:

  • what self help is and how to start it
  • how to form groups, which families and members of the community to incorporate
  • meeting with community leaders and elders to explain the SHG plan
  • facilitating meetings, leadership, book keeping and participation.

    In addition it offers advice on:
    • opening savings and bank accounts for SHGs
    • conducting internal lending within the SHG
    • assessment and evaluation
    • sanctioning the credit facility to the SHG

    The handbook also provides example letters and book keeping accounts, easily adaptable for SHGs.