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What is main difference between shg(self …

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What is main difference between shg(self help group) and cooperative society??☺️

Posted by Sahil Kaushik 4 years, 9 months ago

CBSE > Class 11 > Economics

1 answers

Sia ? 4 years, 9 months ago

Self help groups	Cooperatives
a. These groups have organised rural poor more so women in collecting their money and in extending loans to its members.	Under cooperatives, members pool in their resources, and from their deposits they seek loans from the banks.
b. SHG charge less rate of interest as compared with any other form of rural banking or even those charged by moneylenders	The deposit from the cooperatives serve as the collateral.
c. These groups gradually can seek loans from the bank so as to create employment opportunities for its members.. It is the group as a whole which is responsible for the repayment of the loan.	Loans sought from the banks are extending to other members for the purchase of agricultural equipment, for cultivation, trade etc. Example, farmers cooperatives, weavers’ cooperatives

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