In a small village in Haldwani, Uttarakhand, a group of women gather under the banner of the Baini Sena Self-Help Group (SHG). Their hands, calloused from years of domestic labor, now work together to weave threads of hope—both literally and metaphorically. Among them is Sunita, who speaks with quiet pride about the loan she received through her SHG. “Kitne gharon ke lintel lag gayi SHGs ki wajah se” (“So many homes have been built because of these SHG loans”), she says. Sunita’s story, like countless others, captures the transformative power of SHGs  in empowering women to reclaim agency over their lives.

This essay draws on stories like Sunita’s and includes insights from fieldwork under the Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM). It explores how SHGs are not just financial institutions but catalysts for emotional, social, and economic transformation in urban India.

The Heartbeat of Change: Women Supporting Women

In Kanpur, the Trinetra SHG showcases a collection of handcrafted designer belts. These are not just products; they are symbols of resilience. Behind every belt is a story of a woman who dared to believe in herself, supported by a collective that believed in her potential.Once, the women were homeworkers,now they are successful entrepreneurs in the locality. 

In a quiet corner of Kanpur, Nisha Singh sits surrounded by colorful fabrics, delicately stitching intricate patterns into tiny garments meant for temple deities. A member of the Harihar Self-Help Group, Nisha’s work is not just a livelihood—it is her lifeline. Having lost her child a few years ago, Nisha spiraled into depression. “I felt like I had lost everything,” she recalls. “I didn’t know how to move forward.  My peer SHG women helped me to come out of the dark phase of my life.”

It was Nisha’s involvement with the SHG that pulled her from the depths of despair. The women of the group rallied around her, encouraging her to start making deity clothes, a skill she had learned as a child. “Their faith in me gave me the strength to believe in myself again,” she says. Today, Nisha’s work is not only a source of income but also a source of pride and purpose.

SHGs thrive on the principle of solidarity. They create safe spaces where women can share their struggles, celebrate their triumphs, and draw strength from one another. In Karnal, Haryana, Ruby, a member of the Chetna Mahila SHG, recalls how her group helped her break free from the clutches of high-interest moneylenders. “Our area was dominated by loan sharks trapping women in debt. We are now able to free ourselves,” she says.

Such stories underline the emotional backbone of SHGs. They are not just about economics; they are about restoring dignity, building confidence, and fostering a sense of belonging in a world that often marginalizes women.

Skill Development and Enterprise Creation

In Bhubaneswar, Odisha, SHG women have turned solid waste management into a model of sustainability. Managing waste collection and recycling centers, they have proven that grassroots initiatives can achieve what private contractors often cannot—efficiency paired with community trust.

In Haldwani, another SHG runs a “Bartan Bank,” renting out utensils for community events. This innovative business does not just meet local needs; it builds a sense of pride among its members. These women, many of whom had never handled money before joining SHGs, are now confident entrepreneurs managing their own finances.

These enterprises are about more than economic gains. They are about showing women their own potential, proving to them that they can be providers, innovators, and leaders.

Financial Freedom

In Kanpur, Sangeeta from the Sneha SHG recounts how her life changed when she was able to secure a small loan to start making aalta (a traditional red dye used in ceremonies). “I never thought I could contribute to my family’s income. Now, I feel I am as important as anyone else in my household,” she shares.

Sneha SHG, Kanpur making aalta

Such shifts in perception—both self-perception and how others see these women—are at the core of SHG success. They offer women a pathway to financial inclusion, enabling them to access credit, save money, and invest in futures they could not previously imagine.

Overcoming the Challenges

For all their success, SHGs are not without challenges. Many women express frustration with delayed credit linkages and inadequate training in leadership and financial management. In field interviews, one SHG member remarked, “We’ve learned to save, but managing our accounts is still a struggle. We need someone to teach us.”

The human resource crunch in implementing DAY-NULM compounds these issues. Community Organizers (COs) and Community Resource Persons (CRPs) often manage large clusters with limited resources, making it difficult to provide the handholding support that many SHGs still need.

Despite these barriers, the determination of SHG members shines through. Their ability to adapt, innovate, and overcome obstacles is a testament to the strength of their collective spirit.

A Picture of Progress: Faces of Change

Women of the Trinetra SHG in Kanpur proudly display their designer belts.

In every city and village where SHGs operate, similar scenes play out. Women showcase products they have poured their labor into—pickles, woolen garments, traditional art forms like Aipan and Chikankari. Each item tells a story of creativity, resilience, and pride.

SHG women managing  canteen facilities known as Shakti Rasoi  at government offices—a demonstration of their versatility and community trust.

These moments are not just about commerce. They are about identity. They are about women stepping into spaces they were once excluded from and claiming their rightful place in the economy and society.

Towards a Better Future

SHGs are more than economic instruments; they’re lifelines for women seeking change. But to truly unlock their potential, systemic challenges must be addressed. Women need more than loans—they need training, mentorship, and access to wider markets. Government programs like DAY-NULM must be scaled up, with more investment in human resources and infrastructure to support SHGs.

Perhaps most importantly, the stories of SHG women need to be heard and celebrated. These are stories of courage and community, of women who refuse to be defined by their circumstances. They remind us that empowerment is not just about policies or programs—it’s about people.

Conclusion: A Tapestry of Hope and Resilience

When asked what her SHG means to her, Nisha’s eyes glisten with emotion. “It gave me back my life,” she whispers. In her words lies the essence of what SHGs represent—not just an economic tool, but a lifeline, a second chance, and a community of hope.

For women like Nisha, who once felt trapped in despair, SHGs offer a path to reclaiming agency, pride, and purpose. They stitch together the fragmented pieces of broken lives, much like the deity clothes Nisha creates—each thread representing courage, each stitch a step toward healing.

Across India, countless women are writing similar stories of transformation. In quiet villages and bustling towns, they are finding their voices, supporting one another, and proving that change begins at the grassroots. Every loan disbursed, every product sold, and every meeting held is a step toward a future where women no longer just survive—they thrive.

As India marches toward urbanization, the strength of its cities will not be built solely on infrastructure but on the resilience of women like Nisha and the millions of others whose lives are intertwined through SHGs. Their courage to rise, to rebuild, and to lead is the foundation of a truly inclusive and equitable society.

SHGs remind us of the power of community, the healing nature of solidarity, and the unbreakable spirit of women. They teach us that even in the darkest moments, there is light to be found in the hands of those who stand with us. In their triumphs, we see a vision of a brighter, more compassionate world—a world stitched together with threads of hope, resilience, and unity.

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