PM announced Rs 1,625 crore for women SHGs

Prime Minister Narendra Modi interacted with members of women self-help groups (SHGs) under the “Aatmanirbhar Narihalti se Samvad” event on August 12, 2021 across the country and announced to release capitalisation support funds of Rs 1,625 crore.

Highlights

  • Capitalisation support fund will benefit over 4 lakh SHGs.
  • Prime Minister also released Rs 25 crore as seed money which is going to benefit 7500 SHG members under the PM Formalisation of Micro Food Processing Enterprises which is run by Union Food Processing Industries.
  • Rs 4.13 crore was also released as funds for 75 Farmer Producer Organisations (FPOs) being promoted under National Livelihood Mission.
  • He also announced that, limit of loans available to self-help groups without guarantee had now been doubled to Rs 20 lakh.
  • Condition of linking savings accounts with the loan account has also been abolished.
  • These SHG members or community resource persons are also promoted under Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM).
  • On the occasion, a compendium of success stories of women SHG members was also released along with a handbook on universalisation of farm livelihoods.

What are SHGs?

Self-Help Groups (SHGs) are defined as informal associations of people who come together to find ways of improving their living conditions. It is a self-governed, peer-controlled information group of people coming from similar socio-economic background with a desire to perform common purpose collectively.

Significance of SHGs

SHGs are mostly formed in villages that face numerous problems like illiteracy, poverty, lack of skills, lack of formal credit etc. Such problems cannot be tackled at individual level. Thus, SHGs acts as vehicle of change for the poor and marginalized. It helps in building functional capacity of the poor and the marginalized with respect to employment and income generating activities.

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