define is SHG????????
Answers
Answer:
Self Help Group of women of 15-20 remember in a rural area
Answer:
Definition :
A self-help group (SHG) is a financial intermediary committee usually composed of 10–20 local women or men.
SHG is nothing but a group of people who are on daily wages, they form a group and from that group one person collects the money and gives the money to the person who is in need.
Explanation :
I will explain SHG by taking an example of India.
Banks are not present everywhere in rural India. Getting a loan from bank it difficult due to the lack of collateral and proper documents. Collateral is difficult for poor people. Collateral is an asset that the borrowers owns (such as land, building, property,vehicle,livestock, deposits with banks) and uses this as guarantee to a lender until the loan is repaid.
People have tried many ways to provide loans to the poor, one such way is by SHG (self-help group).
Poor women in rural areas pool their savings to form SHGs. A typical SHG has 15-20 members, usually belonging to the same village. They meet regularly and save regularly.
Saving can vary from Rs. 25 to Rs. 100 or more from member to member. Members can take small loans from the group itself to meet their needs. Group charges interests on these loans which is less than charged by moneylenders. After a year or two if the group is regular in saving, it becomes eligible for availing loan from availing bank. Banks sanction the loan in name of the group. Small loans are provided to the members for releasing mortgaged land, working capital, buying goods, fertilisers, etc. Group is then responsible for the repayment of loans. Non-payment is followed up seriously.
The SHGs help borrowers to overcome the problem of lack of collateral. They can get timely loans for variety of purpose. SHGs are building blocks of rural poor. They help rural women especially to become financially self-reliant. Regular meetings also help them to discuss social issues like health, nutrition, domestic violence etc.
