I want to start a self-help group in Gorakhpur for women, how do I register it and get bank loans?

Detailed Legal Analysis

To start a self-help group (SHG) for women in Gorakhpur, you need to register the group as a society or a cooperative society and subsequently apply for bank loans. Here’s how you can do this:

• Formation of the Self-Help Group:
  • Gather a minimum of 10-20 women who are interested in joining the SHG.
  • Decide on the group’s objectives, rules, and regulations.
• Registration of the Self-Help Group:
  • You can choose to register the SHG under the Societies Registration Act, 1860, or the Cooperative Societies Act, 1912.
  • Prepare the necessary documents, which typically include:
    • Memorandum of Association.
    • Rules and Regulations of the society.
    • Identity proof and address proof of the members.
    • Minutes of the first meeting where the group was formed.
  • Submit these documents to the Registrar of Societies or the Registrar of Cooperative Societies in Gorakhpur.
  • Pay the required registration fee, which may vary based on the act under which you register.
• Opening a Bank Account:
  • After registration, obtain a Certificate of Registration.
  • Visit a bank to open a joint savings account. Most banks require:
    • Certificate of Registration.
    • Identity proofs of all members.
    • Resolution of the group authorizing specific members to operate the account.
• Applying for Bank Loans:
  • Prepare a project proposal detailing the purpose of the loan, planned activities, and expected impact.
  • Visit local banks to inquire about SHG loan schemes. Key schemes include:
    • Self-Help Group-Bank Linkage Programme by NABARD.
    • Various state-specific schemes aimed at empowering women.
  • Submit the project proposal along with all necessary documents, including the bank account details.
• Compliance and Training:
  • Participate in training programs organized by NGOs or government agencies to enhance skills in financial management and entrepreneurship.
  • Ensure regular meetings and maintain proper records of transactions and activities.

By following these steps, you can successfully establish a self-help group for women in Gorakhpur and access bank loans to support its activities.