'ASHA', a Unique Product for finance to SHGs

  • SHG is a small group of rural poor, who have voluntarily come forward to form a group for improvement of the social and economic status of the members.
  • Normally SHGs are informal groups (unregistered).
  • The concept underlines the principle of Thrift, Credit and Self Help.
  • Members of SHG agree to save regularly and contribute to a common fund.
  • The members agree to use this common fund and such other funds (like grants and loans from banks), which they may receive as a group, to give small loans to needy members as per the decision of the group.
Needs of SHGs:
Structure and Size of SHGs:
Functions of SHGs:
Keeping of accounts:
Books to be maintained by an SHG:
Major functions of an SHG:
Benefit for the Bank:
Deposit Linkage:
Credit Linkage:
Assessment of Credit Limit:
Computation of Drawing Power within the Credit limit:
Rate of Interest:
Interest Subsidy:
Review of the Account:
Reporting - Activity Code for SHG Credit Linkage:
Migration of the existing SHGs into the fold of'ASHA':