A Model That Works
In India 's rural periphery, a group of 12 women gather every Thursday morning under a neem tree. They are members of a Self-Help Group (SHG) facilitated by ** AVARIA FOUNDATION **. Today they are reviewing their collective savings ledger — ₹47,000 pooled over 18 months — and deciding on a loan application from one of their members who wants to buy a second-hand sewing machine.
This is not a development project. This is a functional financial ecosystem built at the grassroots.
What AVARIA FOUNDATION Does Differently
Many organisations form SHGs and walk away. Our model is different:
Formation & Training (Months 1–3)
- Identify homogeneous groups of 10–15 women from similar socio-economic backgrounds
- Conduct financial literacy training: savings, interest calculation, record-keeping
- Link groups to the nearest bank branch for savings accounts under the SHG-Bank Linkage Programme
Incubation & Monitoring (Months 4–18)
- Monthly field visits by trained field workers to review books and resolve disputes
- Formal grading system — NABARD's "Grade A/B" SHG classification — to unlock credit
- Market linkage workshops connecting SHGs to AGMARKNET and district-level FPOs
Graduation & Peer Mentorship (Month 19+)
- Mature SHGs become "Mentor SHGs" that train newly formed groups
- Successful individual members are profiled for Mudra Yojana loans for micro-enterprise expansion
By the Numbers
| Metric | AVARIA FOUNDATION SHG Program |
|---|---|
| SHGs Supported | Active in 10+ clusters |
| Women Reached | 500+ directly |
| Average Savings per SHG | ₹38,000+ per annum |
| Credit Linkage Rate | 72% of Grade A SHGs |
Beyond Money: The Social Dividend
Economic empowerment is inseparable from social empowerment. Women who control their own income are:
- 3× more likely to invest in their children's education (ICRW, 2023)
- Significantly less likely to tolerate domestic violence
- More likely to participate in Gram Sabha meetings and hold elected office
This is why ** AVARIA FOUNDATION views SHG formation not as a livelihood intervention but as the foundation of comprehensive community transformation.**
Want to support a women's SHG in India? Donate today and your contribution goes directly to field operations.
