explain the role of self help groups in rural economy.
Answers
Answer:
Self help groups.
Explanation:
Women self help groups provides a more approachable means of taking loans in rural areas where people are more turned towards the informal sources of lending. Due to these self help groups farmers do not have to make any collateral investment and even less documentation is required. This helps the rural villagers to take loans from banks at low interest rates and prevents them from falling into debt traps.
Answer: Self help groups are small groups(especially in rural areas) who pool their resources and individual saving together to help those who are in need of funds.
• Facilitates the members to employ themselves in numerous self employment opportunities.
• Helps in raising the living standards of the concerned members.
• Thus, with the help of SHGs, the rural poor became economically independent and their dependence on the local moneylenders who charge a high rate of interest is also reduced.
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