Five habits of a well-run self-help group

A self-help group runs on trust, and trust runs on clear records. Groups that last for years usually share a few simple habits.

1. Meet on a fixed day. A regular meeting, weekly or monthly, makes saving a habit. Members know when to bring their savings and repayments, and nobody has to chase anyone.

2. Write everything down at the meeting. Savings, loan repayments, fines and decisions should be recorded the same day, in front of everyone. Records written later from memory lead to disputes.

3. Keep cash and bank separate. Know exactly how much is in hand and how much is in the bank. Count the cash at the end of every meeting.

4. Lend by rules everyone agreed on. The interest rate, the loan limit and the repayment period should be decided together and written in the group's rules, so every member is treated the same way.

5. Read the accounts aloud. Once a month, the secretary or treasurer should read out the totals: savings, loans given, repayments and cash in hand. When every member can see where the money is, the group stays strong.

Lagatiyal's free SHG accounts help with all five: a meeting-day sheet, savings and loan records, a cashbook and bankbook, and a monthly report that can be printed and read out.