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Useful links

 Facts about SHGs

The Self Help Group (SHGs) model was started by MYRADA in India in 1985. By 1986-87 there were only 300 SHGs.  As a concept, it emerged out of a failed cooperative that MYRADA established.  “ A numbers of members asked MYRADA to revive the credit system. They usually came in groups of 15-20.  When reminded of the loans they had taken out from the cooperative, they offered to return them to MYRADA, but not to the cooperative, which in their experience was dominated by a few individuals.  MYRADA staff suggested that they return the money to themselves in other words the members who had come in a group to present their case to MYRADA. After some hesitation, they decided to continue meeting in these smaller groups.  MYRADA staff realized that they would need training on: how to organize a meeting, set an agenda keep minute, etc.  Efforts were made to train the members systematically. On analysis it emerged that the members were linked together by a degree of affinity based on relationship of trust and support; they were also often homogeneous in terms of income or of occupation” (MYRADA).

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Return on investment

A cost benefit analysis study was commissioned to document both the qualitative and quantitative evidence of the outcomes of the SHG approach in six programmes supported by Tearfund in Ethiopia.  The outcome of the study shows  for every dollar spent, between 58 and 173 dollars of benefit are returned.  When only donor costs are considered (after 10 years the programme is internally funded), for every dollar spent the return is 210 dollars.    Read the summary of the study here.