SHG MEMBERS TURN INTO LAKHPATI DIDIS

According to an SBI report  released On Mar 12, Women self-help group (SHG) schemes have been highly successful in rural India, leading to significant increases in income. 65% of SHG members across the country have become Lakhpati Didis (women with savings of more than one lakh). The report estimates that Lakhpati Didis emerging as a game changer by 2026-27 across most.

Self-Help Groups (SHGs) are small, informal groups of women who collectively save money and provide loans to one another. SHGs in India primarily consist of women from rural areas who come together to enhance their living conditions. These groups comprise 10-25 members from the same village or nearby. SHGs empower women by offering collateral-free micro-loans, socio-economic self-reliance, building social capital, and promoting financial independence, healthcare, and family planning. Additionally, SHGs provide a platform for women to connect, share experiences, and support each other, which can boost their confidence and improve their social status

Self Help Group – Some numbers

Highlights of the report:

1. Credit linkage, digital access and targeted policy measures have ensured 3 times the income (credit in accounts) of women SHG members during FY2019-FY24.

2. The income of urban female members increased by 4.6 times.

3. Most of the women SHG members are in the age group of 35 to 50 years and the average age is 43 years.

4. Relative income analysis shows that about 65 per cent of rural SHG members have moved upward in terms of relative income in FY 2024 compared to FY 2019.

5. While Andhra Pradesh and Telangana are leaders in SHGs.

6. Annual income of women SHG members from Haryana, MP, West Bengal and Jharkhand is expected to cross Rs 1 lakh in 1 year.

7. SHG members from UP, Maharashtra, Chhattisgarh and Rajasthan may take another 2 years to earn an annual income of Rs 1 lakh.

8. By FY27, there will be lakhs of Lakhpati Didis in almost every state of India.

9. Spending on ATMs for SHG members is almost stable during FY 2019-23.

10. There are no region-specific variations when it comes to UPI as there is not as much difference in spending between rural SHG members and metro SHG members.

11. The share of P2M transactions in UPI transactions by SHG members has almost doubled in 4 years in four regions of the country.

12. Expenditure through the Aadhaar enabled system increased at least 3 times from FY23 to FY24 across all sectors.

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