Self-Help Group (SHG) schemes of Punjab are deriving the financial independence and entrepreneurship particularly among women and marginalized sections of society. These initiative schemes help in the savings, easy access to credit, and business opportunities.
If you are looking to start an SHG or benefits from the government in this scheme this guide will covers everthing you need to know.
What is a Self-Help Group (SHG)?
A Self-Help Group (SHG) is a small community consisting of 10 to 20 people who share their savings, provide financial support to one another, and collectively invest in the activities that generate revenues. SHG is an umbrella programme of the NIRMAN SHG promoting the establishment of savings and credit organizations and micro-finance institutions, skill development, entrepreneurship development, and establishing linkages between producers and consumers.
Top Government SHG Schemes in Punjab
1. Punjab State Rural Livelihood Mission (PSRLM)
Key Benefits:
PSRLM organizes village communities into SHGs to help them become economically strong.
Providing skill development training for small businesses.
Links the SHGs to the bank for easy credit access.
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2. NABARD SHG-Bank Linkage Programme
Why It’s Important:
- SHGs can be secured with loan without any collateral from banks.
- The SHGs that are in place and new groups being formed are met with financial literacy, business management and entrepreneur training.
- Offer mentoship and skill enhancement programs.
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3. Punjab National Bank (PNB) Women SHG Schemes
Popular Schemes:
- PNB Mahila Udyam Nidhi: Loan assistance for small-scale industries.
- PNB Mahila Samridhi Yojna: Subsidized loans to women for the establishment of new businesses.
- Creche Financing Scheme: Providing women with funds for starting childcare centers.
How to Create an SHG in Punjab (Step-by-Step Guide)
- Set up a Group: Get 10-20 members together who have a shared goal to increase capital.
- Set Rules and Responsibility: Have the members make the terms for the savings and the rules for obtaining a loan, and identifying the tasks for leadership.
- Start Regular Savings: No matter if the money comes every week or month, it should be a small amount.
- Open a Bank Account: Connect your savings group to a bank to have your financial transactions go through the bank.
- Try for Government Programs: Try to obtain finances from the PSRLM or NABARD programs.
- Spend in Profit-Making: Small-scale enterprises such as craft workshops, milk dairy farming, or retailing will use the funds to start their operations.
- Monitor and Expand: Money, credit, etc. must be kept under strict control and new ways of profit increase found.
Impact of SHGs on Women Empowerment in Punjab
- Economic Freedom: Women get economic freedom independence.
- Skill Development: Training in business management, crafts, and technology.
- Better Social Status: Increased participation in community decision-making.
Challenges Faced by SHGs in Punjab
- Limited Market Access: SHGs crack the market but they find it tough to follow SHGs products buyers.
- Lack of Training: Need for better financial and Digital literacy programs.
- Financial Constraints: Difficulty in scaling up due to limited funds.
How to Overcome These Challenges
Become partners with online marketplaces that facilitate the sale of SHG products.
Attend government-sponsored skill workshops.
Apply for Higher fundings under the government schemes.
In reality, the SHG initiatives are in actual fact, not only an economical but also a political and social cable between the rural economy and the Punjab Government. If you wish to start an SHG, it would be prudent to utilize the help of the government and banking programs. Those initiatives are supposed to provide participants with financial security, skills, and business opportunities.
