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

Detailed Legal Analysis

Self-help groups are promoted under the Himachal Pradesh Rent Control Act 2012 rural livelihood mission and the National Rural Livelihoods Mission framework. A group of 10 to 20 women from similar socio-economic backgrounds can form an SHG in Manali and open a savings bank account after being recognized by the promoting agency.

The Himachal Pradesh High Court has held that SHGs are a valid vehicle for financial inclusion and the state must provide enabling support including training and credit linkage. After six months of regular savings and functioning, the SHG becomes eligible for bank linkage loans up to a multiple of its savings corpus.

The state rural development department or the district poverty reduction cell provides revolving fund and capacity building support. The group must maintain minutes, attendance, and savings and credit registers for audit.