Despite vast expansion of the formal credit system encompassing spheres of social and mass banking, the dependence of the rural poor on moneylenders still continues in many areas, especially for meeting their emergent needs. Under the circumstances, a non-formal agency for credit supply to the poor, in the form of Self Help Groups, emerged as a promising partner to the formal credit system. SHGs are part of micro credit.

The objectives of Self Help Groups are to:

Estimation of credit requirements:

Ist Dose: 1:4 times of the corpus or 50,000/- whichever is higher( for economic activity upto
Rs.25,000 whichever is higher)-If group saves Rs.1.00 they will get Rs 4.00 as
bank loan 
2nd Dose: 1:6 times of the corpus 
3rd Dose: 1:8 times of the corpus