how are the self help groups(SHG ) helpful?
Answers
Answer:
NABARD's 'SHG Bank Linkage' program
"By aggregating their individual savings into a single deposit, self-help groups minimize the bank's transaction costs and generate an attractive volume of deposits. Through self-help groups, the bank can serve small rural depositors while paying them a market rate of interest."
Explanation:
Self-Help Group (SHG) is a homogeneous group of poor, women. ... This scheme mobilises the poor rural people especially women to form groups for mutual benefits. SHGs play a crucial role in improving the savings and credit and also in reducing poverty and social inequalities.
SELF HELP GROUP is a concept emerged in the direction of helping rural poor forming groups so that, they will improve their living conditions through voluntary participation in thrift and credit. The core objective is FLEXIBILITY, TRANSPRARENCY AND AUTONOMY with SENSITIVENESS AND RESPONSIVENESS of the participants.