Self-Help Group 1
Self Help Group: Chhim bial
Self-Help Group Chhim Bial
Mizoram
David Lalmuankima Asst. Professor,
Governtment Lawngtlai College
Department of Geography
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Abstract
A Self-Help Group, as the name suggests is an institution at the ground level which
should be able to help itself from issues like gender and social injustices and to help rural people
escape from the clutches of poverty. However, such groups need support and co-operation from
larger bodies in order to function efficiently, and to maintain the principles of the group over a
long period of time. The Self-Help Groups that have been started in the Chhim bial region of
Mizoram, are beginning to avail the benefits of their union; and thanks to the support of the
government through MzSRLM, they enjoy the benefit of a reliable parent body and have been
growing in number since their induction in 2014.
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Self-Help Group, Chhimbial
Introduction
Due to the many social and economic diversities that are currently faced, the need to
uplift and promote the weaker sections of society has risen in recent years. The Self Help Group
(SHG) concept has been started to meet the needs in this regard. These groups, with the help of
larger institutions such as the government and banks, are aimed at providing the weaker sections
and economically backward population an opportunity and ample support to progress and have a
better way of life. The Self Help Group allows its members to unionize and work towards
common goals.
The basis of the self-help group exists before any intervention. The members are linked
by a common factor, such as caste, sub-caste, blood, community, place of origin or activity. The
interveners, whether from the NGO, Bank, or Government must have the experience and develop
a know-how so as to identify these natural groups, which are commonly referred to as “affinity
groups”. Even when group members are engaged in a similar traditional activity, like basket
weaving, the basis of the group’s affinity could be a common caste or place of origin.
The self-help group is not a static and stagnant institution, but rather it grows on the
resources and management skills of its group members and their increasing confidence and skill
to get involved in the issues and programs which require their involvement in the public and
private side.
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Aims and Objectives
Each Self-Help Group is unique in the sense that each group has different needs, different
resources and members from different economic and social background. As such, each group has
different minute aims and objectives; however the founding principles on which these groups are
formed remain common, and thus some aims and objectives remain unchanged throughout any
group.
These principle aims and objectives include:
Address Gender and Social issues
Take Joint or collective initiative
Participate in the community actively
Monetary and financial support of the members
Create better communal harmony
Promote and enhance the livelihood and business of people living in rural areas
Support families who are a part of BPL (below poverty line)
Apart from the aforementioned points, Self Help Groups provide the benefits of group or
joint ventures of scale reducing costs in certain areas of the production process which the
members may decide to initiate as a common action. The group also ensures a cost effective
credit delivery system, as the transaction costs of loaning money decrease sharply both to the
banks and the borrowers. The groups create a forum for collective learning, which people living
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in remote areas find more “friendly”, that is consequently more effective than the classroom
approach that is commonly adopted.
The groups promote a democratic system and provide the members with opportunities to
create and practice norms of behavior that are based on mutual respect. The SHGs adopt an”
intra-preneurial” culture where each member realizes that while she/he needs the help of the
group to achieve her/his goals, the group also requires her/his support and participation in equal
measure. The group provides a firm base for communication and interaction in programs with
other governing bodies such as Government departments, cooperatives, financial and Panchayat
Raj institutions etc.
If the SHGs operate well, they have the credibility and the resources to ensure their active
participation in identifying, planning, budgeting, and implementation of Panchayat Raj programs
for the empowerment of the poor. The SHG provides an individual member of the group with the
help needed to exercise control over the size and schedules of loans and programs from bodies
such as banks, to broaden the scope of asset provision to include a package which would help the
individual to cover risk rather than to provide a single asset; it also helps to assess the member’s
management and financial capacity which may fall short of what a “viable” investment package
requires for optimum returns, as prescribed under regular IRDP norms.
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How The Self Help Group was founded
The Self Help Group initiative was taken up by World Vision Group India, a non-
Governmental organization that focuses on developing or under developed nations that are in
need of financial support in order to live a standard way of life. World Vision Group itself is a
Christian organization, which was developed as a Child sponsorship program, originating in
China and in the United States of America.
In 1950, Bob White, the founder of World Vision Group began to sponsor children who had
been abandoned by their parents and guardians. The initiative quickly began to take traction, and
in 1958 a single room office was set up in Kolkata, marking the beginning of the Group’s tenure
in India. In 1970, the group began to take up a larger role in the community and subsequently the
programme was broadened from earlier sponsoring solely children, to a programme that focused
on all members of the society, with an emphasis on empowering the weaker and backward
portions of the community.
With this aim, the Self Help Group was started in the Chhimbial zone, comprising of villages
from Lunglei, Lungsen and Bianghmun. The project was initiated in 2014 in this area, and
functions under the North-East Rural Livelihood Project (NERLP), a government initiative
aimed specifically at the rural population.
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Presently, on October 2019 the governing institute for the Self Help Group has been
transferred in the Chhim Bial region from The World Vision Group to the MzSRLM (Mizoram
State Rural Livelihoods Mission) in order to facilitate an easier co-operation with the
government. The benefits and rights of every group remain protected and unchanged even with
this transfer, only the governing body changing hands.
The Mysore Resettlement and Development Agency, more commonly known as MYRADA, a
non-governmental organization started in 1968 working in backward and drought-prone areas,
has advocated the self-help group as the appropriate people’s institution which provides the
economically backward and poverty section with the space and support necessary to take
effective steps towards greater control of their lives in private and in society.
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Formation of Self Help Group
The formation of a Self Help Group can be separated into three broad phases, for the sake
of easier understanding. Not all groups are common, and thus there is no standardized method of
a founding group, place, time or activity. However, a few guidelines can be put as indicators
regarding the features of the Self Help Groups at the end of each phase, which helps to provide a
matriculated system against which their progress can be assessed.
The first phase involves the identification and creation of a new group. This is a crucial
element of the creation process, upon which all other steps depend. The Mizoram State Rural
Livelihoods Mission understands that in order to assure a correct identification and smooth
functioning of a Self-Help Group, care must be taken that an experienced member is placed to
identify such a group at the ground level. Special care must be taken so that socially oppressed
classes are given active participation in the formation of groups, like members belonging to
Scheduled Tribes, Scheduled Castes, and Other Backward Classes etc. As a rule, the Self Help
groups comprise primarily of women, but Persons with Disability and Senior citizens may also
take part in the group.
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Self Help Groups have to consist of eight to fifteen members. However in the case of
groups that comprise of members who are certified PwD’s (Person with Disability), the group
may consist of five to fifteen members. Only one member is permitted to take part from a single
family, to ensure an equal voice to all participants and group members.
The identification and formation of the group involves collecting data such as credit, income,
seasonality and natural resources available in the area. As the Self-Help Group is not a purely
financial institution, factors like social equity, gender equality etc must also be taken into
consideration. During the first phase, if the Self-help Group is composed entirely of women, it
has been found necessary to communicate and interact with the men in the society and explain
what is going on, especially the benefits and advantages that will be benefited by the family
through SHG.
It would be a misconception to assume that the Self-help Group is formed after the first
meeting is adjourned. It takes numerous meetings and gatherings over a period of 2 to 4 months
until the group may be defined as complete and definite. During this period, some members of
the group may leave and others may be added if the group feels it necessary to do so.
The meetings held during the first phase are not only social gatherings; the members of
the Self-help Group also raise issues related to issues in the family and the village. Matters
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regarding finance, like saving and loaning money are also discussed elaborately as this is the
major common function of the group. Agreement to save and to lend money and the willingness
to follow and obey group decisions without mistrust and anger in the group indicate a degree of
trust in one another; which are considered to be the building blocks of effective SHGs.
Some critical assessment points in the self-help group are that the group is identifiable; members
may not walk in and come out at their own will. The members should agree to save regularly, to
create a culture of thrift and to adopt a mindset of self-help. Some groups may have started
savings in the first phase itself. Basic records like an Attendance Register, a Minutes Book; and a
Members Savings Ledgers and Individual Savings Pass books -if savings have started – should
be recorded and maintained well.
The schedule for meetings must be decided on by the members, and group meetings should be
held regularly according to the schedule. Two members of the group should be elected who shall
function as the chairman and secretary. Many groups prefer to call them representatives instead
of the chairman and secretary since the titles of Chairman and Secretary have a pre-notion in the
minds of people as positions of power. The groups are encouraged to change the representatives
or Chairman and Secretary every year and to elect the following year’s representatives six
months ahead of their appointments so that they can be adequately prepared and trained. The
group should have given itself a name during this period. If savings have begun, the group
should open an account in the nearest Bank or Post Office. The account must contain two
signatories, whether it be one from the SHG and the other from the NGO, or both from the Self
Help Group.
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In the second phase of group formation, the savings become regular and thus the strength of the
lending operation increases. This allows the members of the SHG to acquire the skills to manage
its resources and finances. The group discusses thoroughly on the rate of savings, on the timing
of the loans, on the schedule of repayments, and on the interest rates; it assesses and decides
when and whether the member needs a loan, and whether she/he is able to use the loan
effectively and usefully and to repay according to the schedule decided on.
A literate member of the group, or a person from the village who has the adequate
qualification and skill should maintain the important books and records like Admission Book,
Attendance Register, Minutes Book, Members Savings Ledger, Members Pass Book, Receipt
Voucher, Payment Voucher, Cash Book, General Ledger, Loan Ledger, and Stock Book.
Group training should be held regularly. At least 3 modules each of 2 days, during this
phase, must be organised to enable all to participate effectively, especially the weaker members.
The two representatives who have been elected, namely the Chairman and the Secretary,
need to be trained to conduct meetings, to establish a helpful culture in the group, to inculcate
priorities in lending, and to impose and accept sanctions against badly behaved group members.
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They need to enable themselves with the knowledge of numeracy and literacy, to enable
them to keep a check on what is recorded in the Minutes and pass books. They need to develop
leadership qualities and acquire the confidence to communicate and correspond with institutions
like Government Departments and Banks, as well as to initiate organizing of common action
programmes. It is recommended that the group elects the representatives for the following year,
at least six months in advance so as to ensure the newly appointed leaders are well trained in all
these aspects to build up their skills and confidence. If the group representatives are not changed
every year, there is a danger that the power may accumulate in the hands of a few members,
which will in turn prevent the effective functioning of the Self Help Group.
One or two small common action programmes in the village should be planned and
implemented, preferably in collaboration with other SHGs if they exist in the village, during this
second phase. Gender issues that concern women and the girl child are raised at meetings, and
form an important part of the training process. Men are invited to participate in common action
programmes, and are also occasionally invited to attend SHG meetings.
The third phase in the formation of Self Help Groups revolve around the withdrawal of
the governing or supporting institute, and ideally should take place in between twenty to thirty
six months from the beginning of the formation of the group. During this phase, the group has
grown in skill and confidence, and all aims and functioning of the group is aptly and adequately
carried out by the elected representatives.
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As the group takes on a major role in its organisational maintenance, the members of the
supporting body gradually withdraw. To begin with, these members reduce their attendance at
the weekly group meetings. Next, the group begins to pay for the maintenance services which
they require, such as payment of the person who has been hired for writing the Minutes and for
keeping accounts. Earlier experience with self-help groups has also shown that they are
vulnerable to political influences or are often used as steps towards political positions.
Politicization of the member bodies weakens and eventually destroys the self-help group. The
interveners must be careful to ensure that the groups are strong enough to control the functioning
of the Apex bodies before they are formed.
At every step of the way, it is the duty of the concerned body, in this case the Mizoram
State Rural Livelihoods Mission to ensure a smooth functioning of the group and guide the
members to a sustainable and better way of life.
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Self Help Group Chhimbial Report
The Self Help Group initiative entered the Mizoram Chhimbial (Southern) region in
2014. Initially the intervening group was the World Vision Group Indian Branch but in October
2019 the project was transferred to the Mizoram State Rural Livelihoods Mission. The project is
a part of the NERLP, the North East Rural Livelihood Project.
There are currently thirty two (32) rural villages in this region. Of these, 20 villages have
been entered/revived, and the Self-help Group project is yet to enter 10 villages. The following
table illustrates the data of the Chhim Bial region at a glance.
Number of Block Staff 3
Total number of villages in region 32
Number of villages entered/revived 20
Number of villages yet to be entered 12
Total number of Self Help Groups 132
Total number of Village Organizations (Panchayat/ Village 14
Council)
Total number of members actively participating 1019
Table 1. Data table of Chhim bial
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The villages present in the Chhimbial region are:
Bualte Chengpui Chithar Mualthuam N
Dawn Thangte Hlumte Thuampui
Haulawng Sairep Vanhne Hmuntlang
Vaisam Mausen Tawipui North I Tawipui North II
Thangpui Rawlvawng Tawipui South Khawmawi
Thualthu Zotuitlang Thaizawl Mualcheng South
Thlengang Buknuam Mamte Ramlaitui
Mualthuam South Thingfal Sekhum Runtung
Table 2. Villages in Chhimbial
There are two funds which are made available to the members of the Self-Help Groups in
the Chhimbial block. These funds are, namely, the Revolving Fund and the Community
Investment Fund.
The Revolving Fund or RF, is a fund that can be availed by the members of the group for
their livelihood or necessities, on a basis of loaning from the group. The groups which comprise
of more than seven members can loan a sum of Rs 15,000/-, and groups with seven or less than
seven members can avail up to Rs 10,000/- per member. These funds are loaned out at an interest
rate of 1%, and can be taken out if the members of the group agree that the loaner’s needs are
genuine. The RF may only be used for a member’s livelihood and business, and may not be spent
for one’s personal needs.
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Community Investment Funds, on the other hand, can be taken out only with the approval
of the concerned Village Organization, whether it be the Panchayat or a Village Council. The
Investment Fund is kept in the account of the Village Organization by the intervener or sponsors,
the Mizoram State Rural Livelihoods Mission and a Self Help Group may apply for sufficient
funding for a business, by preparing Micro Credit Plans and appealing to the Village Organization,
who in turn may sanction the funds if it deems it correct to do so. However, as presently the MCP
(Micro Credit Plan) training has not been done adequately due to Covid 19 related issues, the
Community Investment Funds have not been availed by some members of the Self Help Groups.
Presently, these funds are transferred to the account of the Village Organization, wherefrom they
may be accessed by the members of the Self Help Group. Thus, it is important that the local
Village Council or Panchayats are informed of the benefits of the Self-help Group for the
community, and should be given all necessary support and backing to ensure their smooth
functioning. The interveners work closely with the various Village Councils and this collaboration
has resulted in the well timed distribution of the aforementioned funds.
The following table highlights the distribution of Funds across the Groups.
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Sl. Village/VO SHG Amount SHG Amount
No. received received CIF
RF
1 Dawn 11 130000 5 550000
2 Haulawng 12 165000 4 440000
3 Mualthuam N 22 320000 9 990000
4 Sekhum 9 110000 4 440000
5 Ramlaitui 17 205000 6 660000
6 Zotuitlang 11 140000 - -
7 Ralvawng 7 105000 - -
8 Thuampui 7 90000 - -
9 Mamte 7 90000 5 550000
10 Tawipui North- 5 50000 4 440000
I
11 Tawipui North- 7 85000 4 440000
II
12 Thaizawl 5 50000 4 440000
13 Thlengang 3 45000 - -
14 Thualthu 9 115000 5 550000
TOTAL 132 17,00,000 50 55,00,000
Table 3. Distribution of Funds
The Group members are also given access to loans from Banks at lower interest rates. Those groups
who have been formed for at least 6 months, and are deemed by the interveners as efficiently and
effectively made use of the Revolving Fund, are eligible to apply for Bank Loans. The members
may apply for Term Loans or Cash Credit Loans, according to their convenience.
The Partnered bank for Chhim Bial is the Mizoram Rural Bank, Haulawng Branch. Groups take
out the loans with an interest of 7%, but if the loans are repaid according to schedule and according
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to the specified amount perfectly, the members may claim a 4% interest subvention. According to
the NorthEast Rural Livelihood Project Bank linkage, the members may avail for these loans in
doses. The first loan, or first dose, may be an amount of up to Rs. 1 lakh, the second dose up to
Rs. 2 lakhs, and the third dose of up to Rs. 3 lakhs. After the third dose is repaid, the members are
allowed to take loans of larger amounts, which is determined according to the strength of the
group.
Currently, Loans have been sanctioned 33 times by Mizoram Rural Bank. Haulawng branch which
can be seen in the following table.
Sl. No. Loan Dose No. of SHG Loan Amount (Rs)
1. 1st Dose Hmuntlang – 1 25,00,000
Chengpui - 1
Zotuitlang - 2
Haulawng - 6
Mualthuam N - 6
Ramlaitui - 9
2. 2nd Dose Haulawng – 2 8,00,000
Chengpui – 1
Hmuntlang - 1
3. rd
3 Dose Haulawng - 3 12,00,000
Chengpui - 1
TOTAL 33 4500,000
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Conclusion
The Mizoram State Rural Livelihood Mission indicate that in a short period of time, the
Self-Help Group project has benefitted many members into achieving a sustainable and better way
of life. The Project, which was started in 2014 with modest beginnings of only 5 groups in 5 rural
villages, has grown to be an August institution, with more than one thousand members across
twenty rural villages. The advantages and outcome of the groups will presumably track up even
further in the long run.
The MzSRLM further wishes to reach all other twelve villages in the region, and it is
believed that such a project may enable a family to dwell out of the dark clutches of poverty for
the foreseeable future and allow the next generation to create a better world.
Keynotes
“Self-Help”, “Group”, “Chhimbial”, “institution” “social”, “economic”, “gender”, “village”,
“rural”, “poverty”, “member”, “intervener”, “nation”, “governing”, “parent body”, “remote”,
“MYRADA”, “WorldVision”, “Mizoram”, “State”, “North-East”, “community”, “chairman”,
“secretary”, “book”, “accounts”, “minutes”, “literate”, “educated”, “literacy”, “training”, “plan”,
“funds”, “revolving”, “community investment”, “local, “council”, “organization”, “bank”,
“sanction”, “loan”, “financial”
References
Dept. of Economics & Statistics, G. (2010). Chapter 2, 17. In Statistical Handbook of Mizoram
2010 (pp. 2.1–17.1). , Govt. of Mizoram.
