SHG Management

• Efficiently management is important for long term viability and sustainability of SHGs

• For efficient management of SHGs, books like Register of Minutes, accounts (Cash Book/ ledger/ vouchers/ receipts etc) , admission register , attendance register etc are properly maintained

• Trainings and Capacity Building is vital for SHG Management and Leadership training, training on meetings, importance of book- keeping and auditing etc. should be organized from time to time

• Trainings on Functional Literacy gives information to SHG members about the functions of institutions like gram panchayat, zilla parishad, bank, post office, police etc.

• Decision making is an important catalyst for a smoothly running SHG and groups arrive at decisions either through consensus or through majority.

• Disadvantage of arriving at decision through consensus is that it can result in long meetings and delays whereas disadvantage of majority decision is that it can result in group factions and the emergence of a dominant faction within the group.

• Matured and well managed groups have the healthy practice of creating a risk fund or an emergency fund. The risk fund helps to insure the group against unexpected losses.

• Very active participation of all members is an essential factor for a well managed and successful inter-lending and overall financial management of SHGs

• Anything more than 95% percentage of loan repayment is considered good as an indicator to an efficiently managed inter lending system

• In a well managed SHG, surplus money with the common fund is not allowed to be kept idle in the bank but instead lend to members.

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