Drivers of Self-Help Group Approach:Lessons from Comparative Performance of Himachal Pradesh and Haryana

In this study, the implementation and impact of Self-Help Groups (SHGs) in the hilly state of Himachal Pradesh (HP) and Haryana have been compared in terms of participation by families of different social and economic status, stabilities of membership, documentations by the groups, regularity of their meetings and savings and process of decision making, to bring the driving forces behind the above functions by the SHGs. The findings of the study are based upon feedback obtained from the representatives of 90 SHGs from two good performing districts of Mandi and Kangra from HP and Yamuna Nagar and Rohtak of the less performing Haryana. The findings reveal that the management of SHGs is better in HP in terms of regularity of meeting and savings which are corner stone of their success. Grading before financing was done for all SHGs in HP while in Haryana 18% SHGs were not graded. The repeated loans by SHGs were more in HP than Haryana, though loan as revolving cash credit was more in Haryana then HP due to lack of explaining from banks. The professional NGOs in HP were the main motivating agent for better implementation and sustenance of SHGs in HP than Haryana.