Sawyam Paripalak Groups are informal associations of people who come together to find ways to improve their living conditions. They are generally self-governed and peer-controlled..

People of similar economic and social backgrounds associate generally with the help of any NGO or government agency and try to resolve their issues, and improve their living conditions.

Every Self-help group usually goes through 3 stages of evolution stated below:

1. Formation of group
2. Funding or Formation of Capital
3. Development of required skills to boost income generation for the group

Many self-help groups are formed with the assistance of Self- help to promote agencies.The various types of Self-help promoting agencies are stated below:

1. Non-governmental agencies
2. Government
3. Poverty management programmes
4. State & commercial banks
5. Microfinance institutions

Functions of SAWYAM PARIPALAK Groups

• They try to build the functional capacity of poor and marginalized sections of society in the domain of employment and income-generating activities.
• They offer collateral-free loans to sections of people that generally find it hard to get loans from banks.
• They also resolve conflicts via mutual discussions and collective leadership.
• They are an important source of microfinance services to the poor.
• They act as a go-through for formal banking services to reach the poor, especially in rural areas.
• They also encourage the habit of saving among the poor.
• Inability to give collateral security
• Weak credit absorption capacity
• The insufficient reach of institutions
• Weak community network

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