
Women Self Help Groups (SHGs) Loan Schemes across Indian States
Self-Help Groups (SHGs) emerged in India during the early 1980s as a response to the persistent exclusion of rural poor, particularly women, from formal financial systems. Traditional banking institutions required collateral and formal documentation that marginalized communities lacked, forcing them to depend on informal moneylenders who charged exorbitant interest rates. The SHG model drew inspiration from Muhammad Yunus's Grameen Bank in Bangladesh, which demonstrated that group-based lending without collateral could achieve high repayment rates through peer monitoring and social pressure. Self-Help Groups have, therefore, emerged as one of India's most transformative instruments for women's financial inclusion and economic empowerment. This represents one of the world's largest community-based financial inclusion initiatives.






