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Target To Make 20 Million Women Associated With SHGs 'Millionaires'

Utkarsh Classes Last Updated 07-02-2025
Target To Make 20 Million Women Associated With SHGs 'Millionaires' Government Scheme 4 min read

Prime Minister Narendra Modi has said that he aims to make 20 million women associated with self-help groups (SHGs) 'Lakhpati Didis' in the next three years.

  • Prime Minister Narendra Modi said this during a virtual interaction with beneficiaries of various government programs under the ongoing 'Vikas Bharat Sankalp Yatra' in Dewas district of Madhya Pradesh.
  • 'Vikas Bharat Sankalp Yatra', launched on 15 November is a nationwide program to reach out to citizens with the Centre's welfare programmes.

Lakhpati Didi Scheme:

  • The scheme is in line with the broader mission of poverty alleviation and economic empowerment.
  • Under this scheme, skill training will be provided to women so that they can earn more than Rs 1 lakh per year.

Features:

  • Drones will be made available to women self-help groups (SHGs) for agricultural activities.
    • The initiative aims to leverage technology to transform the agricultural landscape while empowering women in rural communities.
    • Around 15,000 women self-help groups will be given training in the operation and repair of drones.
    • Through this training, women will get advanced skills as well as new opportunities for income generation.
  • Under this scheme, women will be trained in LED bulb-making, plumbing and other skills.

Self Help Groups (SHGs):

  • Self Help Group (SHG) is an informal association of people who come together voluntarily to improve their living conditions.
  • About 10 crore sisters and daughters have joined SHGs in the country.

Membership Criteria -

  • Self Help Groups (SHGs) are defined by NABARD as small informal groups of 10-20 individuals who mainly come from similar social and economic background living in the same village or locality.
  • Minimum 5 members are required to form SHG in hilly areas, tribal dominated areas.

Loan -

  • According to NABARD, banks can provide savings-linked loans to SHGs between 1:1 and 1:4 savings-loan ratio. For example, if the average savings of the SHG is Rs 10,000, then the loan amount can be Rs 10,000 or a maximum of Rs 40,000.
  • In the case of mature SHGs, the maximum amount of loan is to be decided by the banks.
  • According to NABARD, the loan can be provided for a period of 3 to 5 years based on the estimated savings of the SHG.

To promote saving habits and thrift -

  • To promote saving habits and thrift among the members, they are required to regularly contribute a small amount as savings to the group.
  • Where SHG members are saving regularly and maintaining proper records, they can open savings accounts in banks.

Muhammad Yunus: Pioneer in microfinance 

  • Muhammad Yunus of Bangladesh is considered a pioneer of microfinance in the world.
  • He was awarded the Nobel Peace Prize in 2006.
  • Through his non-profit organisation, Grameen Bank he started to provide small loans from the year 1983.

FAQ

Ans. 20 million

Ans. A Self Help Group (SHG) is an informal association of people who come together voluntarily to improve their living conditions.

Ans. Minimum 5 members are required to form SHG in hilly areas, tribal dominated areas.

Ans. The scheme supports self-help group women to earn Rs 1 lakh or more per annum through training in line with the broader mission of poverty alleviation and economic empowerment.

Ans. Muhammad Yunus of Bangladesh is considered a pioneer of microfinance in the world.
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