In recent years, Lalmani Memorial Sansthan recognized that the traditional individual approach to poverty alleviation was gradually being replaced by the more effective group-based model, especially in the delivery of microfinance services to the poor.

Research and field experience have shown that providing microcredit through Self Help Groups (SHGs) is smoother, more cost-effective, and more impactful in fostering sustainable livelihoods among marginalized communities.

Project Overview:

The organization conducted a dedicated programme to promote SHG formation and capacity building in the districts of Madhubani and Darbhanga, Bihar.

During the financial year, the Sansthan successfully:

  • Formed 25 men’s groups and 27 women’s groups

  • Provided training to group leaders and team leaders to enable them to manage and sustain their groups independently in the future

  • Facilitated access to microcredit for several beneficiaries, enabling them to start small income-generating activities

In collaboration with local stakeholders, some beneficiaries also secured loans through local public networks. Impressively, all loans distributed during the year were fully repaid within the same financial year, demonstrating the effectiveness and discipline of the SHG model.

Impact & Benefits:

  • Improved financial inclusion for poor and marginalized communities

  • Enhanced entrepreneurial opportunities through small-scale enterprises

  • Strengthened the role of women in economic decision-making

  • Created a sustainable mechanism for access to credit and self-reliance

  • Fostered a culture of mutual trust and collective responsibility within communities

A dedicated team of field workers continues to provide support for group formation, training, and monitoring, ensuring that these SHGs remain strong, active, and self-sustaining in the long term.