Explain the term SHGs ?? What …

Self help groups are organisations for the rural poor,particularly women. A SHG usually has 15 to 20 members,belonging to a particular neighbourhood who meet and save regularly.The members of the group can take small loans from the group to meet their needs.the group does charge an interest rate on the loans,but its much less than the loans from informal sources like loans from moneylenders,traders etc.If the group is regular in their savings,it becomes eligible to avail loan from bank.

Advantages of SHGs:

• The SHGs help the borrower to overcome the problem of lack of collateral.
• They can get timely loans for a variety of purposes and at a reasonable interest rate.
• SHGs are the building blocks of organisation of the rural poor.
• Not only do they help women become financially self-reliant, the regular meetings of the group provide a platform to discuss and act on a variety of social issues such as health, nutrition, domestic violence, etc.