SELF HELP GROUPS (SHGS): MICRO FINANCE IN INDIA

Micro finance in India has developed in decades from an idea to implementation to many success stories to an overall success. The early dawn of the idea of micro financing was to provide the capital to the population which was considered the bottom of socio economic pyramid so as to carry out the small household business and this idea has gradually grown up to become the way to help improve the socio standards of the poor people. India is the country of villages, more than 70% of the nation’s population resides in the rural areas of the country and 60% of this rural population depends on agriculture for living. In such situation the micro financing can play a vital role in making the rural people’s life easy. In a developing country like India with a lot of people residing in rural areas, micro finance is undoubtedly the best implementation. Self Help Groups of India has emerged as the world’s largest and most successful network of Community Based Organisations. The main goal of an SHG is to elevate the living conditions of the rural poor with a maximum emphasize on women. The present paper’s objective is to explain the situation of micro finance in India and to explain the main channel of micro finance in India which is SHGs and the details of the SHGs.