All self-help groups are based on the fundamental principles of “helping each other” and “unity is strength”. The film follows a woman working for a NGO as she explains how to select the poorest people in a village and the importance of forming groups among people with similar socio-economic backgrounds. Groups must set rules, e.g. about when and where to meet, what penalties there should be for non-attendance, the level of compulsory savings, the system for deciding on loans and how to maintain records. It may take 5-6 months to establish a new group, although support from older, well established groups can help. Learning by visiting is very important.

Once a group have built up some savings, a bank manager describes how they can then establish a link with a bank by opening a savings account. The important role of the Indian central bank in authorising commercial banks to open savings accounts for self-help groups is specifically mentioned. The film goes on to illustrate the factors that enable a bank to develop a credit rating for groups through the medium of a game of snakes and ladders – good features send a group up the ladders and bad features send them back down the snakes. Typical loan conditions are described and the bank manager mentions the very high repayment rates that SHGs achieve.

The NABARD film provides a good introduction to the SHG model of bringing financial services to poor women in rural areas. It is a good discussion starter for a workshop introducing people to the concepts of microfinance and the potential role of commercial banks. The film running length is 19 minutes. You can order a VCD copy from NABARD.