SHGs (Self Help Groups) History, Objectives, Benefits, Government Schemes, Contact Details & More

Quick Info

Particular	Details
Full Form	Self Help Groups
Hindi Name	स्वयं सहायता समूह
Common Abbreviation	SHGs
Nature	Informal, voluntary, community-based groups
Typical Group Size	Usually 10–20 members
Main Activities	Savings, internal lending, bank linkage and livelihoods
Key Rural Programme	DAY-NRLM, also known as Aajeevika
Key Urban Programme	DAY-NULM
Major Financial Partner	Banks and NABARD
Main Beneficiaries	Rural and urban poor households, especially women
National Rural Livelihoods Portal	nrlm.gov.in
Aajeevika Portal	aajeevika.gov.in
National DAY-NRLM Phone	011-23461708
Bank-Linkage Helpdesk	1800 111 555

What are Self Help Groups?

Self Help Groups (SHGs) are small, voluntary groups of people who come together to improve their social and economic conditions through mutual support.

Members generally belong to a similar socio-economic background and agree to:

Save a small amount regularly
Create a common group fund
Give internal loans to members
Maintain records and accounts
Repay loans on time
Access formal bank credit
Work together on livelihood activities
Discuss and solve common community problems

SHGs are usually informal community institutions rather than companies or registered societies. Their exact structure and registration requirements may vary according to the government scheme or State programme under which they operate. Vikaspedia — Overview of SHGs

Size and Composition of an SHG

Under DAY-NULM guidelines, SHGs generally consist of 10 to 20 women or men. Women-only groups are the most common model, while male or special groups may also be permitted under specific programmes.

In difficult, hilly, tribal, or geographically dispersed areas, the permitted group size may vary. SHGs for persons with disabilities may also have different membership provisions. DAY-NULM Guidelines

Main Objectives of SHGs

1. Promoting Savings

SHGs encourage members to save small amounts regularly. Even modest savings help members build financial discipline and create a common fund.

2. Providing Internal Loans

The group’s savings may be used to provide small loans to members for:

Medical expenses
Education
Marriage
Housing repairs
Agriculture
Livestock
Small businesses
Emergency household needs

The group normally decides the loan amount, interest rate, repayment schedule, and purpose.

3. Connecting Members with Banks

After demonstrating regular meetings, savings, repayment, and proper record-keeping, an SHG may be linked with banks for formal loans and other financial services.

4. Creating Livelihood Opportunities

SHGs help members develop income-generating activities in agriculture, manufacturing, services, handicrafts, food processing, livestock, retail, and other sectors.

5. Building Social Empowerment

Apart from financial support, SHGs can become platforms for discussing:

Health and nutrition
Education
Sanitation
Domestic violence
Child marriage
Government entitlements
Social discrimination
Local governance

The Panchasutra of SHGs

DAY-NRLM promotes five basic principles, commonly called the Panchasutra:

Regular meetings
Regular savings
Regular internal lending
Timely repayment
Up-to-date books of accounts

Following these principles helps an SHG become financially disciplined and eligible for further support from banks and government institutions. Aajeevika — Institution Building

Rural SHGs under DAY-NRLM

The Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM) is the main national programme supporting rural SHGs.

It is implemented by the Ministry of Rural Development in partnership with State Rural Livelihoods Missions.

DAY-NRLM focuses on:

Social mobilisation
Institution building
Financial inclusion
Sustainable livelihoods
Skill development
Enterprise promotion
Social inclusion
Access to government entitlements

Under the programme, SHGs may be federated into:

Village Organisations
Cluster-Level Federations
Producer Groups
Producer Enterprises

The programme largely focuses on organising rural poor women into strong, self-managed community institutions. Ministry of Rural Development

Urban SHGs under DAY-NULM

In urban areas, SHGs may be supported through the Deendayal Antyodaya Yojana–National Urban Livelihoods Mission (DAY-NULM).

DAY-NULM generally works through a three-tier structure:

Self Help Groups at the grassroots level
Area-Level Federations at the slum or ward level
City-Level Federations at the city level

Urban SHGs may receive support for:

Skill development
Self-employment
Micro-enterprises
Credit linkage
Financial literacy
Market access
Urban livelihood activities

Financial Support for SHGs

Depending on the scheme and State guidelines, SHGs may access:

Revolving funds
Community investment funds
Bank loans
Interest subvention
Credit-linked subsidies
Financial literacy programmes
Skill-development assistance
Enterprise-development support
Market-linkage programmes
Training and capacity-building support

Government assistance may be routed through State Rural Livelihoods Missions, Urban Livelihoods Missions, banks, NABARD, NGOs, federations, or district administrations.

SHG–Bank Linkage Programme

The SHG–Bank Linkage Programme is one of the most important financial-inclusion models in India.

NABARD developed the programme after a pilot project in 1992–93 that linked SHGs with formal financial institutions. The model helps groups access banking services without depending entirely on informal moneylenders.

Through bank linkage, SHGs may obtain:

Savings accounts
Cash-credit facilities
Term loans
Working capital
Repeat loans
Insurance
Pension services
Digital banking assistance

NABARD’s Micro Credit Innovations Department promotes the SHG–Bank Linkage Programme and provides policy and institutional support. NABARD — SHG Bank Linkage

Livelihood Activities of SHGs

SHG members may work individually or collectively in activities such as:

Dairy farming
Goat rearing
Poultry
Fisheries
Vegetable cultivation
Food processing
Pickles, spices and snacks
Tailoring
Handloom and handicrafts
Bamboo and forest-product activities
Mushroom cultivation
Honey production
Retail shops
Community kitchens
Catering
Digital-service centres
Rural transport and logistics

Women-led SHGs may also operate as producer groups, farmer collectives, cooperatives, or micro-enterprises.

Role of Community Resource Persons

DAY-NRLM uses trained members of the community to support other SHGs and rural households.

Some examples include:

Bank Sakhi: Helps members access banking and credit services
Krishi Sakhi: Provides agriculture-related support
Pashu Sakhi: Supports livestock-related activities
Business Correspondent Sakhi: Helps provide doorstep banking services
Community Resource Person: Assists with training, book-keeping, group formation, and livelihood planning

National Scale of SHGs

A Government of India release reported that DAY-NRLM had mobilised more than 10 crore rural women households into over 90 lakh SHGs across 28 States and 6 Union Territories.

The same release highlighted the role of SHGs in financial inclusion, livelihood diversification, social development, and women’s empowerment. Press Information Bureau

How to Form an SHG

A general SHG-formation process may include the following steps:

Identify people with similar socio-economic backgrounds and common interests.
Form a group according to the applicable State or scheme guidelines.
Decide the group name, rules, meeting schedule, and savings amount.
Select group leaders or office-bearers.
Begin regular savings and meetings.
Maintain minutes, savings, loan, and cash books.
Open a bank account with authorised signatories.
Start internal lending among members.
Seek support from the local block or city mission office.
Apply for bank linkage, training, funds, or livelihood support when eligible.

An SHG does not automatically receive a bank loan merely by being formed. Banks and government missions assess the group’s functioning, records, savings, repayment history, and eligibility.

Contact Details

Because SHGs are implemented through different national and State programmes, there is no single universal SHG registration office for the whole country.

National DAY-NRLM Contact

Deendayal Antyodaya Yojana–National Rural Livelihoods Mission
Ministry of Rural Development, Government of India
7th Floor, NDCC Building–II
Jai Singh Road
New Delhi–110001

Phone:
011-23461708

Web Information Manager / Technical Email:
mis-nrlm@nic.in

DAY-NRLM Official Contact Page

DAY-NRLM Officer Contact Page

The official NRLM contact-details page also lists:

Officer: Anita Baghel, Director
Phone: 011-23461753
Email: anita.baghel26@nic.in

NRLM Contact Details

SHG Bank-Linkage Support

For technical issues related to the DAY-NRLM bank-linkage portal:

Helpdesk: 1800 111 555
Service Portal: servicedesk.nic.in

DAY-NRLM Bank-Linkage Portal

NABARD SHG Contact

Micro Credit Innovations Department, NABARD
4th Floor, D Wing
C-24, G Block
Bandra-Kurla Complex, Bandra East
Mumbai–400051

Phone: 022-68120047
Email: mcid@nabard.org

NABARD — SHG Bank Linkage Programme

DAY-NULM Urban SHG Contact

For urban SHGs, the official DAY-NULM contact document lists:

Ministry of Housing and Urban Affairs
Nirman Bhawan
New Delhi–110011

Joint Secretary and Mission Director:
Smt. Isha Kalia, IAS

Phone: 011-23063255
Email: isha.ias09@gov.in

DAY-NULM Official Contact Document

State-Level Contact

For group formation, registration, training, grants, and local bank linkage, applicants should contact:

State Rural Livelihoods Mission
State Urban Livelihoods Mission
Block Mission Management Unit
District Mission Management Unit
District Rural Development Agency
Municipal livelihood mission
Nearest bank branch
Local SHG federation or Village Organisation

The national DAY-NRLM office generally does not directly register every individual SHG. State and district-level agencies usually handle local implementation.

Official Social Media Accounts

DAY-NRLM / Aajeevika

X: @DAY_NRLM
Facebook: Aajeevika – National Rural Livelihoods Mission
Instagram: @day_nrlm
LinkedIn: DAY-NRLM
Website: aajeevika.gov.in

The X account identifies itself as the official account of DAY-NRLM under the Ministry of Rural Development. DAY-NRLM Official X Account

Google Search Result Contact Note

Some Google search results and third-party websites list 1800-180-5999 as an SHG helpline number.

This number was not confirmed on the current official DAY-NRLM contact page reviewed for this article. Therefore, users should verify it with the official NRLM or State Rural Livelihoods Mission before calling.

For reliable information, use:

nrlm.gov.in
aajeevika.gov.in
The relevant State Rural Livelihoods Mission
The official block or district mission office
The nearest bank branch for SHG-bank linkage

Do not pay private agents for guaranteed SHG registration or guaranteed government loans. Third-party Google result showing the number

Some Lesser-Known Facts About SHGs

SHGs are usually informal community groups rather than companies.
The typical group size is 10 to 20 members.
SHGs may consist of women, men, or special groups depending on the programme.
Women-only SHGs are the main model under DAY-NRLM.
Savings normally come before bank credit.
Internal lending helps members meet urgent needs before external loans are taken.
A functioning SHG maintains meeting records, savings records, loan records, and member details.
SHGs may become part of Village Organisations and Cluster-Level Federations.
NABARD pioneered the SHG–Bank Linkage Programme in 1992–93.
SHGs are not limited to microcredit; they may become producer enterprises and livelihood collectives.
SHG members can work as Bank Sakhis, Krishi Sakhis, Pashu Sakhis, and other community resource persons.
The correct contact office depends on the State, district, urban or rural location, and scheme involved.
A government loan is not automatic; group functioning, records, credit discipline, and eligibility matter.

Disclaimer: SHG group size, eligibility, registration, grants, loan rules, interest support, and contact details may vary by State and government programme. The contact details above were compiled from official DAY-NRLM, Aajeevika, DAY-NULM, NABARD, and State-government pages, official social-media accounts, and publicly indexed Google search results. Always verify current information through the relevant government portal before submitting documents or making payments.