​Which of the following are operational methodology of Self Help Group (SHG)?

A. Village meeting of women in villages by MFI
B. Group formation
C. Group Training for 5–7 days on procedures and business development skills
D. Group meeting once in a week for mobilizing saving, disbursing and repaying loans
E. Lending money for long-term loans

Choose the correct answer from the options given below:

Correct option is C

The operational methodology of Self Help Groups (SHGs) typically involves the following steps:

1. A. Village meeting of women in villages by MFI:
   Microfinance institutions (MFIs) or other promoting organizations conduct meetings to introduce the concept of SHGs and encourage women to participate.

2. B. Group Formation:
   Formation of small groups (usually 10–20 members) is the fundamental step where like-minded individuals agree to work together.

3. C. Group Training:
   SHG members are trained on savings, bookkeeping, lending procedures, and income-generating activities, typically lasting 5–7 days.

4. D. Weekly Group Meetings:
   Members meet regularly (often weekly) to mobilize savings, discuss financial matters, disburse internal loans, and repay debts collectively.

E (Lending money for long-term loans):
This is not a primary methodology of SHGs. SHGs focus on short-term loans from internal funds (member savings) or bank linkage for immediate financial needs, rather than providing long-term loans.

Thus, the correct operational methodologies are A, B, C, and D Only.

Information Booster:

Key Features of SHG Methodology:

• Mobilization: Encouraging collective savings.
• Empowerment: Building financial and business skills through training.
• Bank Linkage: Access to external credit for scaling operations.
• Regular Meetings: Ensuring transparency and member accountability.
  SHGs emphasize grassroots empowerment and sustainable financial practices.

Additional Knowledge:

E (Lending money for long-term loans) is incorrect because Self Help Groups (SHGs) primarily focus on short-term credit needs to address immediate financial requirements of members, such as small business activities, healthcare, or education. Long-term loans are typically handled by banks or financial institutions, not SHGs, as SHGs lack the capacity to sustain long-term lending due to limited pooled resources and their emphasis on quick loan turnover to benefit all members.