Question

explain the role of SHG in rural and urban poor​

Answer 1

Answer:

• It looks to build the functional capacity of the poor and the marginalized in the field of employment and income generating activities.
• It resolves conflicts through collective leadership and mutual discussion.
• It provides collateral free loan with terms decided by the group at the market driven rates.
• Such groups work as a collective guarantee system for members who propose to borrow from organised sources.
• The poor collect their savings and save it in banks. In return they receive easy access to loans with a small rate of interest to start their micro unit enterprise.
• Consequently, Self-Help Groups have emerged as the most effective mechanism for delivery of microfinance services to the poor.