A self-help group is an independent voluntary association formed by women from the same socio-economic background who come together to the purpose of solving their common problems. The origin of SHG dates back to 1975 founded by professor Mohammed Yunus, a Nobel laureate for pioneering the concepts of microcredit and microfinance. SHGs are formed by government organizations in order to edge the poverty. SHGs are seen as an implementation for the goals of empowering women, developing leadership amongst poor and needy people. Members of SHGs make regular small savings to make a corpus fund until there is enough money to lend it to those who are in need or divide amongst themselves.
The very existence of SHGs is to make people of below-poverty-line be hopeful and self-reliant. It enables financial security as a primary focus and other common interest of members in areas like awareness, motivation, leadership, community development, training and associating in social inter-mediation programmes for the benefit of the entire community.