Challenges Faced by Self Help Groups

Open Access

Abstract

Poor people continue to face the problem of banking and financial services. It is estimated that 120 million households are facing financial exclusion. In this direction microfinance has played an important role in filling this gap by providing financial services with the help of various lending models among which SHGs are one of them. SHGs are formed by rural people with the objective of improving their livelihoods through collective savings and investments in income-generating activities. The objective of the study is to study the challenges faced by Self Help Groups related to skill level of members. Self Help Groups can act as main vehicle for upliftment of women and families located in rural and urban area of India. SHGs have tremendous potential to contribute in socioeconomic development of India. Government is taking positive steps for SHG development with NGOs but still SHGs are facing problems in four major areas like  financial Support, technical support, marketing of SHG output and training of members.Â