Question

explain the functioning of self help groups in some area

Answer 1

Some Common Features of The Functioning of SHGs are as Follows:

The SHGs create the common fund by contributing their small savings.
Every member of the group actively participates in the functioning of SHGs and they meet regularly.
Their accounts and proceeding are maintained by the leader and leader is selected or elected among the group members.
Amount of loans are small and for short period.
Loan is sanctioned on ‘trust’ with minimum documentation and without any security.
The rate of interest differs from group to group. It is generally little higher than that of charged by banks.