Transforming Lives and Empowering Women in Bihar through the SHG Plus Model

By: WE staff | Thursday, 27 February 2025

• SHG Plus model empowers rural women in Bihar, including Kiran Kumari
• Provides low-interest loans to foster financial independence and decision-making
• Developed in collaboration with the Aga Khan Rural Support Programme India

In Bihar's Muzaffarpur, the SHG Plus model is transforming the lives of rural women. This initiative provides a crucial lifeline to those previously burdened by high-interest debt. The SHG Plus model in Bihar empowers rural women, such as Kiran Kumari, by offering low-interest loans that promote financial independence and enhance decision-making. They created partnership with the Aga Khan Rural Support Programme India; the initiative fosters transparency and inclusivity, transforming lives through profitable ventures like strawberry farming and solar energy installations.

Women like Kiran Kumari can now borrow at just 2% interest through SHG Plus, enabling them to invest in ventures such as strawberry farming and solar power. This evolved version of traditional self-help groups, developed in partnership with the Aga Khan Rural Support Programme India, focuses on financial transparency and collective decision-making.

As SHG Plus expands throughout Bihar, its impact is significant, empowering women with economic independence, financial stability, and a greater influence in family decision-making.

The SHG Plus model improves on traditional Self-Help Groups (SHGs) by offering annual share-outs, transparent record-keeping and inclusive leadership. It helps rural women gain financial independence through low-interest loans and supports sustainable ventures like farming and renewable energy. Developed with the Aga Khan Rural Support Programme India, SHG Plus fosters economic growth and community development.