Swarna Jayanti Gram Swarozgar Yojana Complete Details

Swarna Jayanti Gram Swarozgar Yojana (SGSY) was launched on April 1, 1999 as an integrated program for providing self employment opportunities to the rural poor. The objective of the scheme is to help the people living below the poverty line and organize them as self-help groups through arrangement of social solidarity, training, capacity building and earning assets. This work is done through bank loan and government subsidy.

 This plan focuses onthe establishment of an Action Group by the main activities selected on thebasis of people’s attitude and skill, availability of resources and marketpotential. In this plan, emphasis is given on procedural approach and capacitybuilding of poor villagers. Therefore, NGOs / CBOs / Individuals / Banks areincluded as self-help organizations / facilitators in the development andnutrition of NGOs, including skill development. According to the scheme, thecosts arising on social mediation and skill development training are providedaccording to local needs. Training on the basis of development of groups,allocation from recurring funds and the use of funds for economic activities isavailable in a flexible norm.

Creation of Self Help Groups Under Swarna Jayanti Gram Swarozgar Yojana

Self Help Group is a group of rural poor who want to rise abovethe poverty line by organizing their the members wishes. Members are preparedto deposit small amounts which later change into resource fund.

Regulation for SFG under Swarna Jayanti Gram Swarozgar Yojana

  • The number of members should be at least 10 and greater than 20.
  • All members can be below the poverty line and only one member from one family to the same group of members. A member cannot be a member of another group.
  • The group should have its own rule – the law should be such that the meeting will be every month, the decision will be from public-participation, etc.
  • Be able to prepare the issue for the group meeting and discuss the discussion accordingly.
  • The group can build funds and collect donations from its savings.
  • The group could give loans to its members from its fund and develop the law of financial management – law.
  • The group can take a collective decision regarding the loan in the bank.
  • Can keep the group’s own bank account book, ordinary account book, cash book, bank pass book and personalized pass book.
  • The group can keep the offer book, presence book, loan account book, simple call book, cash book, bank pass book and personal pass book.
  • The disabled should have the same type of disabled group. If there is no kind of disability in the area, then the group can be formed with the kind of disabled people like them.

Self-help group capacity development

All Self Help Groups who have been working for at least 6 months, will be considered as a beneficial group and the group will reach the second phase. Can receive cyclical finance and each member of the group can be selected for capacity development. Circulatory Finance Management which will include 10% financial assistance of SGSY.

Banks that provide financial assistance

  • Business bank
  • Co-operative bank and
  • Regional Rural Bank

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