Of late, the organisational structure of various micro-financial groups is undergoing significant changes. There are Thrift groups; Credit management groups, Income generating groups, Self-help groups and Mutual help groups.
Sometimes the institute that promotes the SHG, itself provides loan facilities. It is called as Micro-finance Institute.

Objectives of SHG.
• Basically the SHGs are economic organisation. Small funds are raised for day to day needs. The saving groups when transformed to earning groups not only increase the productivity of members but the credibility also.
• Doors are wide open to unemployed/ socially deprived/women to understand and gain knowledge about Banking, Gram Panchayats, Zilla Parishad, Law and Judiciary etc.
• As …show more content…
• A common platform is available for a dialogue and sharing of views.

Characteristics of Self Help Group
• The size of the group is in the range of 10-20.
• The members share similar characteristics such as same sex, caste, occupation, poverty attributes etc (homogeneity).
• Members are bound by trust, mutual respect and affection (affinity).
• Though informal, the group follows sound organizational management principles such as agreed rules and regulations, frequent meetings, maintenance of accounts etc.
• Mutual help (one for all and all for one) is the guiding principle of the group.
• Members are guided by the principle of self-help rather than dependence on external help.
• Members are bound together by the collective goal of improving their income and social status Primarily through the organizational strength of working together.
• As the first step towards the above, members make small savings every month.
• From the common pool thus created, they meet the small credit needs of members who otherwise would have to approach the moneylender. Interest is charged on this small loan, which helps the group to build up its common pool. Members decide the rates of interest …show more content…
The group can withdraw money from this credit line as and when its members need credit to start income generating ventures.
• During its meetings, the group also discusses other common issues and takes up collective action to solve problems of their own members as well as of the community.
• The group also becomes capable to access support from ongoing development programmes sponsored by government and non-government organisations.

Office Bearers/Key people governing Self Help Group:
President: Conduct meetings, help members to take collective decisions, solve members’ problems, share information with members.
Secretary: Inform dates of meetings, fix agenda of meetings, record attendance in meetings, prepare minutes of meetings, keep the key of the cash box.
Treasurer: Responsible for all cash transactions in the group, keep custody of cash, monitor loan utilisation and repayment.
Collective responsibility: Represent the group in other forums, deal with the bank, appraise loan applications, plan and implement programmes.

Special features of