Q. 65.0( 1 Vote )

Read paragraph 3rd under the heading of ‘Self Help Group for the Poor’ and answer the question. How are SHGs working in your area?

Answer :

An SHG is a small group of persons who come together with the meaning of finding a key to a common problem such as medical issues, livelihood generation or watershed management, with a degree of self-sufficiency. However, in Andhra Pradesh, the groups largely are the medium through which micro credit is routed to the poor in the belief that it will serve as a catalyst in helping them to pull out of poverty.


The state-sponsored Velugu program working in over 860 sub-district geographical unit in 22 districts, aims to reach 2.9 million of the poorest of rural poor. Both the number and structure of self-help groups in Andhra Pradesh has been scaled up. The major motive of the bank is to accept the deposit and lend that deposit as a loan to investors. A number of social issues including gender and family, child labor, disability and health related to poverty alleviation need to be addressed in the context of SHGs. SHG formations largely take place around women since women are seen as more credit-worthy than men.


Velugu addresses child labor and high dropout rates through regular campaigns to sensitize parents. Especially mothers, youth, other community members and school teachers about the significance of education and its long-term implications for child welfare and poverty decrease. Velugu also aims to directly address the problems of the disabled by organizing them into mutual support groups.


Under Velugu, as the social recruitment process matures in a village, communities are encouraged to analyze their livelihood situations, which in turn disclose options for the community to act. Self-help groups political potential is powerful. Federations form the training ground to make leaders and potential political aspirants. This critical mass has tremendous potential to work for the betterment of the regions they represent.


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