to date so that it Is easy 10 ‘know about the SHGs and that there is transparency within the group. What are the functions of the SHGs? + Initiate and maintain savings within the group: All members must regularly save at least a small amount. These savings allow them to get future credits for their group. « Lending loans to the members: The savings made by the SHG must be used to provide loans to members of the group. Everything related to the loan must be decided within the group. « Solving common problems: SHGs mostly consist of individuals who face similar problems. The grouping should essentially help the individual overcome these problems through discussions and interactions within the group and overcoming the problems and finding a common and united solution to the problems. + Bank Loans: SHGs must work on getting a collective guarantee system so that they can avail loans from official sources. Why does India need SHGs? oe: The need to solve problems at the ground OoThe aavantages of SHGs are as follows: ¢ Combating social evils: The SHGs play a crucial role in overcoming social evils like alcoholism, drug addiction, gambling, etc. « Women empowerment: Women SHGs make its members independent from social constraints and allow them to make independent decisions. They can even actively participate in the gram sabha. Active participation in democracy: SHGs can actively participate in the aspects of local governance. This would mean the inclusion of weaker and marginalised sections of the society in the local governance. ¢ Increase employment opportunities in rural India: It allows for micro-level entrepreneurship within the rural society and reduces too much dependence on agriculture. ¢ Easier access to government schemes: The government schemes are mostly meant for the marginalised sections of the society. The inclusion and identification of these people are highly difficult. If they are grouped together, it is easier for the government to identify those who are in need of assistance quickly and oO efficiently. It also prevents the exploitation and Qo« Improves the standard of living: The collective team effort by the SHGs for financial inclusion allows for the improvement in the living standard, family planning, healthcare, of the vulnerable sections of the society. ¢ Financial discipline: The members of the SHGs are encouraged to open savings accounts in banks. This assures improved living conditions, increased spending on education, health, etc. Don't Miss Out Any Post! ep What are the limitations of SHGs? ¢ Too much dependence on government and NGOs: Many SHGs are dependent on the promoter agencies for their survival. In case these agencies withdraw their support, the SHGs are vulnerable to downfall. « Lacks qualified facilitator: The facilitators do not have professional training with regards to organising SHGs. « Lacks up-gradation of skills: Most SHGs are not making use of new technological © innovations and skills. This is because there is QO