A Study on Self-Help Groups in Dharmapuri District
Self - Help Group is homogeneous affinity groups with common objective of enhancing their economic conditions. Theorists view it as the homogeneous group of poor village people formed with at least 5 members. In reality, the SHG groups comprises of 12-20 members of nearly same economic conditions and aspirations. This is not based on strict rules, even though rules are framed to conduct smooth conduct of SHG meetings and the routine money rotation. The credit is provided for bothconsumption and other productive purposes. SHG members can leave a small amount of money collectively and they can lend, collateral-free loans it to their members of reasonable rate of Interest. Any decisions are taken in collective manner. Self-Help Groups is the real model to be emulated by all to change the lives of the poorest of the poor. It is one of the potential instrumentsin the armoury of the government to mitigate the poverty in the rural and urban Indian households. It has a positive impact on the family of the member of SHG. The basic principles of the SHGs are group approach, mutual trust, organization of small and
manageable groups, group cohesiveness, sprit of thrift, demand based lending, collateral free loan, women friendly, peer group pressure in repayment, skill, training capacity building and empowerment.