Top 12 Self-Help Groups in India

Self-Help Groups (SHGs) have played a key role in bringing about positive change across various communities in India. Because of these groups, mostly controlled by women, new paths for managing poverty and financial support are now often taken in villages and cities. Such Self-Help Groups in India are an effective way to bring about development through reaching out to those who need support, providing opportunities, and fostering leadership among the most marginalized. From the first steps they took in the 1980s to covering the needs of millions of households today, community-based organizations have remained strong and adaptable.

The movement started with only savings and credit, but now it handles issues such as gender equality, health care, education, and saving the environment. They have come together to stand up to social inequality, assist people in starting their businesses, and ensure communities not linked to formal banks become independent. While India advances toward inclusive growth, these institutions are vital in providing jobs and improving the lives of many people.

What Exactly is a Self-Help Group (SHG)?

Similar to what my family has, a self-help group is formed by people of similar backgrounds coming together to aid each other in dealing with common obstacles. These microstructures follow rules of self-rule, democratic choices, and joining efforts with others. Indian Self-Help Groups have members contribute small amounts of money regularly, and the money collected is borrowed by group members, depending on what the group decides. Most SHGs arrange meetings every week or month, and at these meetings they exchange loan repayments, update accounts,, and discuss new loan requests.

Apart from financial matters, they offer a chance for everyone to ask questions, gain knowledge, practice new skills, and talk about important issues. A majority of the SHG members, making up around 90% of all members, are women, yet there are also groups formed by men and mixed groups. Usually, SHGs develop by forming, stabilizing, performing microfinance work, and lastly improving livelihoods and promoting social changes. Its power lies in providing something simple for communities, adapting well to various cultures, growing social relationships, and meeting basic economic needs.

Growth of Self-Help Groups in India

• Origins: In the 1980s, NGOs like MYRADA and PRADAN introduced the Grameen Bank model to Indian villages, showing that well-trained women’s groups could effectively run savings and credit programs.
• Policy Recognition: In 1992, NABARD’s SHG Bank Linkage Programme recognized SHGs as viable clients for formal banking, encouraging credit access without traditional collateral.
• Scaling Up: Between 2000 and 2010, SHGs expanded rapidly through the SGSY scheme and international support. By the end of the decade, 7 million SHGs were linked to banks, with ₹50,000 crore in loans issued.
• Federation Development: SHGs formed federations at various levels—village to state—enabling collective action in markets and government programs, evolving into sustainable community institutions.
• Digital Transformation: SHGs have embraced digital tools like bookkeeping apps, mobile banking, and direct transfers, supported by the JAM trinity.
• COVID-19 Response: During the pandemic, SHGs produced masks, sanitizers, and offered vital community support, reinforcing their role in rural resilience and development.

Benefits and Impact of Self-Help Groups in India

• Economic Transformation: By saving regularly and getting help from Self-Help Groups, many people in India have avoided harmful lenders, as interest rates on Self-Help Group loans have reduced from 120% to only 12-24%. Studies indicate that, on average, SHG members’ incomes rise by about 20-40% after three to five years, most notably for those from landless families and underprivileged groups.
• Women’s Empowerment: Experience indicates that involvement in SHGs has significantly boosted women’s authority over their own lives. According to nationwide research, the majority of long-term members say they spend their money more wisely, travel more, have a louder voice in their children’s education, and have a better say in their families, so their economic role leads to stronger social power.
• Financial Literacy: Through SHGs, unbanked people improve their understanding of savings, loans, interest, and managing financial records. The survey results from 2019 showed that SHG members were more knowledgeable about finance and government plans than people with a similar socioeconomic background who were not in any group.
• Social Capital: These organizations offer priceless connections that help members deal with difficulties and provide benefits. Studies conducted in different states prove that support and information from other SHG households enable them to cope with disasters, health risks, and economic decline.
• Political Participation: Belonging to the toana SHG is the first step for many women who decide to join administration roles in villages after the 73rd Constitutional Amendment. Research on state elections notes that roughly 40% of women selected for local governance have been part of Self-Help Groups in India, helping introduce the group’s participatory model to government organizations.
• Nutritional Security: When members of SHGs have extra earnings, better handle finances and share information, their families’ food consumption rises. When nutrition education is taught during group meetings, studies show that kids from SHG families have better nutrition and lower risks of stunting and wasting than other groups.

List of 12 Prominent Self-Help Groups and Initiatives in India

1. Annapurna Mahila Mandal – Maharashtra

In 1975, the founding of this women’s cooperative in Mumbai enabled them to have meals, and in time, it also became one of India’s leading microfinance institutions. Right now, it supports over 200,000 women through its financial services, training for entrepreneurship, and efforts to protect women in their homes and rights. Under the leadership of Dr. Medha Purao Samant, AMM now runs microfinance, microinsurance, education sponsorships, child care centers, and training initiatives across Maharashtra.

Key Initiatives:

• Annapurna Mahila Multi-State Co-op Credit Society Ltd.: Offers microfinance services, including small loans and savings programs, to self-employed women and men.
• Annapurna Pariwar Vikas Samvardhan: Provides microinsurance schemes covering health, life, and asset protection for low-income families.
• Vatsalyapurna Service Coop Society: Operates day care centers for children of working women in slums, facilitating better work-life balance.
• Dada Purao Research & Training Institute: Conducts research and training in microfinance and microinsurance, contributing to policy and practice improvements.
• Purna E-Solutions Foundation: Develops software solutions to support the organization’s various programs.

The organization’s founder, Prema Purao, was honored with the Padma Shri in 2002 for her contributions to social work.

2. Mahila Arthik Vikas Mahamandal (MAVIM) – Maharashtra

At the State Women’s Development Corporation of Maharashtra, MAVIM has gathered over 200,00SHGs in both urban and rural locations. The organization’s special model, called CMRC, continuously supports SHG federations with training in nutrition gardens, understanding technology and farming techniques that can withstand climate changes.

Key Initiatives:

• Tejaswini Maharashtra Rural Women’s Empowerment Programme: Aimed at empowering rural women through SHGs, enhancing their socio-economic status .
• Sanitation Credit Program: In partnership with ICICI Bank and CEPT University, MAVIM facilitated sanitation loans for SHG women to construct individual household toilets, notably in Jalna city.
• Community Management Resource Centres (CMRCs): These centers support SHGs by providing training, resources, and facilitating access to credit and markets.
• Nav Tejaswini: A program focusing on enhancing women’s skills and capacities for improved livelihoods.

As of recent reports, MAVIM has organized over 20 lakh women into SHGs across Maharashtra, fostering economic and social empowerment .

3. SEWA (Self Employed Women’s Association) – Gujarat

In 1972, Ela Bhatt started SEWA, which mixes features of labor unions and cooperatives. Besides Self-Help Groups in India, the organization has introduced a SEWA Bank, programs for social security and cooperatives related to handicrafts, agriculture, and services to help make sure informal women workers are well supported.

Key Initiatives

• SEWA Bank: It provides microfinance services to women who lack access to traditional banking.
• Health and Insurance: Through programs like Vimo SEWA, the organization offers affordable health and life insurance to its members.
• Childcare and Education: SEWA runs childcare centers and educational programs to support working mothers and promote children’s education.
• Advocacy: SEWA advocates for policy changes to improve the rights and conditions of informal women workers.

As of 2025, SEWA has over 3.2 million women members across India, making it the largest central trade union of informal women workers in the country.

4. Jharkhand State Livelihood Promotion Society (JSLPS) – Jharkhand.

JSLPS tailors the SHG model in tribal regions to address the particular struggles of living in deep forest areas. “Ajivika Krishak Mitras” promotes innovation in farming by connecting with SHGs, and tribal producer companies play a role in transferring forest products from collectors to larger markets across India.

Key Initiatives

• PALASH Programme: In collaboration with Grant Thornton Bharat LLP and supported by the Gates Foundation, JSLPS repurposed over 50 unused government school buildings across five districts into hubs for economic and administrative activities. This initiative has benefited more than 35,000 women entrepreneurs and self-help groups.
• Skill Development Programs: Under schemes like Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), JSLPS offers skill training to rural and urban poor, aiming to transform them into an economically independent workforce.
• Livelihood Promotion: JSLPS supports the formation of producer groups and cooperatives, facilitating access to markets and financial services. It also promotes non-farm products and services to diversify income sources for rural households.

Operating across all 264 blocks and 24 districts of Jharkhand, JSLPS has significantly contributed to poverty reduction and women’s empowerment in the state.

5. Mission Shakti – Odisha.

Women have been brought together through this program, forming nearly 600,000 small groups into a three-tier federation, helping to build India’s biggest women’s movement. Its mobile retail outlets and cafes managed by SHG federations are proof that women’s groups can successfully contribute to the economy.

Key Initiatives

• Formation of WSHGs: Mission Shakti organizes women into self-help groups, promoting savings, credit access, and collective decision-making.
• Financial Support: The program provides seed money, revolving funds, and interest-free loans to SHGs, facilitating income-generating activities.
• Capacity Building: Training in bookkeeping, health awareness, education, and leadership is imparted to enhance the effectiveness of SHGs.
• Market Linkages: Efforts are made to connect SHGs with markets, enabling them to sell their products and services effectively.

6. Kudumbashree – Kerala

Across the globe, Kudumbashree is seen as an example of how Self-Help Groups and local self-government can empower women in India. The community is organized into neighborhood groups, area development societies and community development societies and these organizations unite with government and business sectors to operate poverty reduction plans.

Key Initiatives

Three-Tier Community Network: Kudumbashree functions through a structured hierarchy:

• Neighborhood Groups (NHGs): Grassroots collectives of 10–20 women.
• Area Development Societies (ADS): Clusters of NHGs at the ward level.
• Community Development Societies (CDS): Federations at the panchayat or municipal level.

Inclusive Initiatives: The mission has established Auxiliary Groups for women aged 18–40 and special NHGs for the transgender community, promoting broader social inclusion.

Microfinance & Entrepreneurship: Kudumbashree facilitates microcredit and supports women in establishing micro-enterprises across sectors like agriculture, services, and food processing.

Skill Development: Through training programs and partnerships, such as the recent ‘SmartShree’ initiative with IIM Kozhikode, the mission enhances women’s entrepreneurial skills and market access.

7. VELUGU SHG Program (SERP) – Andhra Pradesh

The Society has established this program to help women and has united over 10 million of them into SHGs and federation groups. The approach of investing in the community, including those with disabilities, and promoting nutrition has been successfully replicated in different states.

Key Initiatives

• Community Institutions: 4-tier SHG network (SHG, VO, MS, ZS) for decentralized planning and support.
• Bank Linkage: SHGs connected to banks for easy access to credit.
• Livelihoods: Support for agriculture, dairy, and small businesses with training and market access.
• Social Empowerment: Committees tackle domestic violence and social issues.
• Nutrition & Health: Day-care centers improve maternal and child nutrition.
• Land Rights: Legal aid for land access and tenure security.
• Targeted Support: Focused aid for the poorest households.

8. Jeevika (Bihar Rural Livelihoods Promotion Society) – Bihar

By operating in a state that faces economic hardships, Jeevika has gathered more than 10 million women into SHGs that help tackle serious poverty, social discrimination, and patriarchy. Through the “Aajeevika Krishak Mitra” model and the “Didi ki Rasoi” community kitchens, SHGs are being utilized in different ways.

Key Initiatives

• Community Institution Building: Formation of a four-tier structure comprising SHGs, Village Organizations (VOs), Cluster-Level Federations (CLFs), and Producer Groups to foster collective action and decision-making.
• Financial Inclusion: Facilitating access to credit through SHG–Bank Linkage Programs, enabling women to secure loans for various livelihood activities.
• Social Development: Implementing programs focused on health, nutrition, sanitation, and gender equality to enhance the overall well-being of rural communities.
• Skill Development & Employment: Providing vocational training and facilitating employment opportunities through partnerships with various organizations.

9. MYRADA SHG Federation – Karnataka

MYRADA, having introduced SHGs in India, drives its federations to be independent and self-supporting. The SHGs pay for services at these CMRCs, making these resource centers community-managed. Even if the NGO is no longer involved, the resource centers continue to operate under the community’s direction.

Key Initiatives

• Formation of SHG Federations: In 1996, MYRADA began organizing SHGs into federations to enhance their sustainability and effectiveness.
• Community Managed Resource Centres (CMRCs): To support the growing network of SHGs and their federations, MYRADA facilitated the establishment of CMRCs.
• Policy Advocacy and Capacity Building: Beyond grassroots initiatives, MYRADA engages in policy advocacy and provides training to other organizations and government agencies.

10. Tamil Nadu Women’s Development Corporation – Tamil Nadu

Many women’s groups were set up in the state as a result of the corporation implementing the Mahalir Thittam program. It is notable for focusing only on people living in extreme poverty, forming groups based on areas of employment, and carefully supporting groups to grow and become producer companies.

Key Initiatives

• Mahalir Thittam (Mathi): Launched in 1996–97, this flagship program focuses on forming and nurturing Self-Help Groups (SHGs) for women, promoting savings, internal lending, and community development.
• Tamil Nadu State Rural Livelihood Mission (TNSRLM): TNSRLM aims to build strong institutional platforms for the rural poor.
• National Rural Economic Transformation Project (NRETP): This project promotes cluster development in both farm and non-farm sectors.
• Tamil Nadu Urban Livelihood Mission (TNULM): TNULM focuses on reducing urban poverty by enhancing the livelihood opportunities of the urban poor through skill development, self-employment, and access to affordable credit.
• Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): This skill development initiative targets rural youth, providing them with training and placement opportunities to ensure sustainable wage employment.

11. Umeed – Jammu & Kashmir State Rural Livelihoods Mission (JKSRLM)

Since it works in conflict areas, this initiative has modified the Self-Help Groups model from India to focus on trauma relief, peacebuilding, and helping the economy recover. Traditional crafts and agriculture are now marketed with the help of special women’s self-help groups involved in pashmina and saffron production.

Key Initiatives

• Formation of Self-Help Groups (SHGs): Mobilizing rural women into SHGs to foster collective action, savings, and access to credit.
• Financial Inclusion: Facilitating bank linkages for SHGs, providing interest subvention on loans, and promoting financial literacy.
• Skill Development and Entrepreneurship: Implementing programs like the Start-Up Village Entrepreneurship Program (SVEP) to nurture rural entrepreneurs.
• Empowerment of Women Farmers: Through the Mahila Kisan Sashaktikaran Pariyojana (MKSP), promoting sustainable agricultural practices among women farmers.
• Community Institution Building: Establishing Village Organizations (VOs) and Cluster Level Federations (CLFs) to strengthen the institutional framework.

12. NRLM-SHG Federations – Pan India

Across the country, states use similar systems for SHG development provided by the National Rural Livelihoods Mission, including the same training, rating, and monetary protocols. Trained SHG members act as Community Resource Persons, helping other members learn and adapt to the program quickly.

Key Initiatives

• Three-tier Structure: SHGs → Village Organizations → Cluster-Level Federations for decentralized support and governance.
• Financial Inclusion: Easy access to bank credit, revolving funds, and community investment funds.
• Livelihood Support: Promotion of farm/non-farm livelihoods, producer groups, and market linkages.
• Skill Development: Training through CRPs, DDU-GKY, and SVEP for entrepreneurship and employment.
• Women Empowerment: 8+ crore rural women mobilized into SHGs across India.
• Digital Access: SHG women trained as Bank Sakhis for doorstep banking services.

Government Initiatives Supporting SHGs

• NRLM/DAY-NRLM: The Deendayal Antyodaya Yojana-National Rural Livelihoods Mission is a main initiative by the government to support SHGs and has provided over ₹30,000 crores since 2013.
• MUDRA Loans: Through the Micro Units Development and Refinance Agency scheme, Self-Help Group members in India can receive loans of up to ₹10 lakhs without collateral in three categories: Shishu, Kishore, and Tarun. Since 2015, more than ₹15 trillion have been disbursed under this program,, am and out of those funds, women entrepreneurs received 70%.
• Interest Subvention: To make it easier for SHGs to get credit from institutions, the government grants interest subsidies so that prompt-paying SHGs receive rates as low as 7% and, in 18 aspirational districts, as low as 4%.
• E-Shakti Initiative: The initiative by NABARD converts SHG paperwork to digital format in 100 districts, for easy access and to help SHGs qualify for credits quickly. The mobile app supported by the platform helps keep transactions up-to-date, create financial reports digitally and connect SHGs to the credit bureau systems, in turn ensuring SHG operations are both current and focused on the community.
• SHG-Bank Linkage Program: It continues to develop by providing products such as SHG Cash Credit, loans for enterprise development, and insurance plans made to meet customer needs. So far, the program has distributed over ₹3.7 lakh crore, and the recovery rates have remained above 95%, proving that Self-Help Groups are highly reliable in India.
• PM SVANidhi: This post-COVID scheme mainly focuses on street vendors but also extends help to SHG enterprises in the city’s food market, by offering up to ₹10,000 in working capital and making digital transactions more attractive.

How to Find and Get Involved with Self-Help Groups in India

• Local Exploration: Visit your nearest gram panchayat, anganwadi center, or block development office since the field staff are likely to keep a list of active SHGs under them. Usually, these government touchpoints meet with SHG delegates often, so you can reach out to neighborhood group leaders.
• Online Resources: In case you are interested in joining an SHG federation, you can check the National Rural Livelihoods Mission website (aajeevika.gov.in) for a database of groups across India, along with contact details for the district units that can initiate an introduction. Additionally, each state has its livelihood mission portal with maps indicating areas where SHGs operate and what they focus on.
• Banking Channels: In India, Self-Help Groups can use rural banks and cooperative institutions as intermediaries to stay informed about active Self-Help Groups around them. A bank manager in charge of SHGs may suggest groups with proven outcomes and the ability to welcome additional members.
• NGO Partnerships: For decades, SHGs have been supported by organizations like PRADAN, MYRADA, SEWA, and Professional Assistance for Development Action (PRADAN), who look forward to welcoming volunteers with financial education, digital skills, or experience in creating market opportunities.
• Formation Process: You may also start a new group by bringing together 10-20 people who share a similar way of life and purposes. An important part of the process is to conduct meetings, create a group bank account, begin saving together, and ask a bank or an NGO to recognize and assist us as we develop ourselves.
• Digital Platforms: Using mobile apps, new members of SHGs can access modules to help them understand the process and regulations. They allow groups to find new members by creating digital community boards for different parts of India.

Conclusion

The growth of Self-Help Groups (SHGs) in India is a major social achievement, empowering over 120 million households, especially women. These flexible grassroots collectives improve poverty, foster community decision-making, and build on trust. As India advances in technology and climate adaptation, SHGs continue evolving with a focus on ownership, active participation, and gradual growth. Their success offers valuable lessons globally. Moving forward, SHGs will emphasize technology, market linkages, and better financial services, while remaining democratic spaces where communities exercise collective power to transform both economy and society.

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FAQs

Is there a chance for men to take part in Self-Help Groups in India?

Most of the members in SHGs across the country are women, but some SHGs are exclusively for men, and some SHGs work together as mixed groups, mostly when it comes to farmers and artisans.

How much do you have to save to qualify for membership in an SHG?

In most cases, the saving amount is agreed among members, staying between ₹20 and ₹200 each week or month and allowing for seasonal changes in agricultural areas.

What is the difference between SHGs and microfinance institutions?

Indian Self-Help Groups are cooperatives, not banks or financial companies, where everyone starts by saving money, controls their loans and investment, and any earnings are reinvested locally rather than given to outsiders.

Is it possible for city-dwellers to join the SHGs?

Absolutely. Under the National Urban Livelihoods Mission, the SHG model has been adjusted for cities, and over 5 million urban women are taking part in groups dedicated to housing, starting small businesses, and working in the service industry.