explain the factors which are responsible for creating shgs
Answers
The factors which led to the creation of self-help groups are;
- People wanted the avenue where they could express their interests and views.
- People wanted avenues where they could borrow money for their usage.
- People and mostly the women were able to source for internal lending for their own savings.
There is a large chunk of population in India that lives below the poverty line and most of these people are from the rural areas.
As result of poverty these people suffer from problems such as meager incomes, degraded living standards and lack of any societal stature.
In order to help elevate this wide spread poverty the government has made provisions for helping the poor financially such as easy lending schemes for farmers etc.
But in order for the poor and uneducated to be able to reap benefits of these schemes, numerous Voluntary organizations came forward to bring together the efforts of individuals and help them achieve benefits of a group