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Role of non-governmental organisations in formation and linkage of self help groups in Punjab


Sorokhaibam Somina Devi, Sanjay Kumar and Jasdev Singh



Indian Journal of Economics and Development
Year : 2014, Volume : 10, Issue : 2
First page : ( 184) Last page : ( 190)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/j.2322-0430.10.2.047

Role of non-governmental organisations in formation and linkage of self help groups in Punjab

Devi Sorokhaibam Somina, Kumar Sanjay1, Singh Jasdev*
*Research Scholar and Agricultural Economists, Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004


JEL Classification: G21

Online published on 28 April, 2014.

Non-Governmental Organisations (NGOs) have been acting as a financial intermediary between the microfinance institutions and Self Help Groups (SHGs). The main role of NGOs is to prepare the members to participate in the group activities through changing their mindset. The paper analyzed the role of NGOs in formation and linkage of SHGs and also tried to assess the problems faced by them during this process. The study revealed that NGOs play an important role in SHG formation, linking the groups with the banks, arranging for loans and imparting training to start income generating activities. Distrust of the prospective SHG members on NGO personnel, difficulty in forming homogenous groups, non-cooperation from family members towards associating with the SHG, difficulty in inculcating the chores of maintaining the accounts and records among the members of the SHG and lack of funding were the major problems faced by the NGOs while forming and linking the SHGs. The study emphasized that the promoting agencies should put some extra effort in identifying credible and capable NGOs which should be provided funding on assured basis and such NGOs should also be able to access grants/subsidies and schemes from the Government.

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