Introduction

In order to give focused attention to rural credit, women empowerment, and rural development activities, the Society has introduced the Navodaya Self Help Group (SHG) Scheme. The scheme is designed to encourage financial inclusion, self-employment, savings habits, and socio-economic development among rural women and economically weaker sections.

The Navodaya SHG Scheme aims to strengthen rural communities by promoting group-based savings and credit activities, enabling members to undertake productive and income-generating activities for improving their livelihood and standard of living.

Various awareness programs, training sessions, and developmental activities are organized with the support of institutions such as NABARD and other rural development agencies to encourage effective implementation of the scheme.

Objectives of the Scheme

The main objectives of the Navodaya SHG Scheme are:

• To create awareness and provide basic education among rural women.
• To inculcate the habit of savings and financial discipline.
• To enable rural poor members to mobilize and multiply their savings.
• To create an atmosphere of mutual cooperation, self-help, and togetherness.
• To identify and improve the skills available among rural women.
• To encourage self-employment and income generation activities.
• To promote economic independence among women and rural families.
• To develop rural areas as centers of production rather than merely centers of consumption.
• To improve the social and economic condition of rural communities.

Members of the Group

The members of the Self Help Group should satisfy the following conditions:

• Members should belong to economically weaker families or communities.
• Members should ordinarily be residents of the same village or locality.
• Members should pay a nominal membership fee as prescribed by the Scheme.
• Membership fee once paid shall not be refunded under any circumstances.
• One member from one family can become a member of the Group.
• A member can represent only one Self Help Group.
• Members should satisfy the minimum and maximum age limits prescribed under the Scheme from time to time.

Eligible Activities

Loans under the Navodaya SHG Scheme may be provided for various productive and income-generating activities such as:

Agriculture & Allied Activities

• Crop cultivation
• Vegetable cultivation
• Dairy farming
• Poultry farming
• Goat and sheep rearing
• Fisheries
• Floriculture

Small Business Activities

• Petty shops
• Grocery business
• Tailoring units
• Bakery and food processing
• Handicrafts and cottage industries
• Home-based business activities

Service Activities

• Beauty parlour
• Rural transport activities
• Small repair shops
• Mobile service centers
• Self-employment ventures

Loan Features

• Simple and easy loan procedure
• Affordable rate of interest
• Group-based financial assistance
• Flexible repayment facility
• Encouragement for women entrepreneurship
• Financial support for rural livelihood activities
• Guidance and training support through developmental agencies

Loan Amount

Loan amount will be sanctioned depending upon:

• Savings performance of the SHG
• Repayment capacity
• Nature of activity undertaken
• Financial discipline of the group
• Eligibility norms prescribed by the Society

Documents Required

• SHG Resolution Copy
• SHG Savings Passbook
• Aadhaar Card of Members
• Passport Size Photographs
• Address Proof
• Meeting Register/Minutes
• Loan Application Form
• Activity Details/Project Estimate

Repayment

Repayment period will depend upon the nature of activity financed and repayment capacity of the Self Help Group. Repayment may generally be made through monthly installments as fixed by the Society.

Benefits of Navodaya SHG Scheme

Financial Benefits

• Easy access to institutional finance
• Reduced dependence on private lenders
• Increased savings habit
• Support for income generation

Social Benefits

• Women empowerment
• Leadership development
• Group unity and cooperation
• Improved awareness and education

Economic Benefits

• Rural employment generation
• Promotion of micro enterprises
• Improvement in family income
• Strengthening rural economy

Government & NABARD Support

Training programs, awareness camps, and developmental activities are organized from time to time with the assistance of NABARD and other rural development agencies for successful implementation of the Navodaya SHG Scheme.

Terms and conditions apply