In existing system from the beginning of SHG till the end of the financial year every task is maintained on the paper. That is Group formation, total savings done by each member in that group, total loan given to a member, overall transaction of that group and so on. Everything will maintain on the form of paper only. In this process chances of miss placing the papers are more and to check for SHG details or about their transactions etc. are very difficult. And staff has to be arranged for each work and takes more of time and also requires more manpower.