Question

how does self help work for the poor​

Answer 1

Answer:

self-help works for the poor because nowadays people don't help them as society doesn't have good impressions about them so the only way left for livelihood is to assist themselves

Answer 2

Answer:

Self Help Groups (SHGs) are small groups of poor people. The members of an SHG face similar problems. They help each other, to solve their problems. SHGs promote small savings among their members. The savings are kept with the bank. This is the common fund in the name of the SHG. The SHG gives small loans to its members from its common fund.

Explanation:

Major Functions of an SHG

Savings and Thrift:

1. All SHG members regularly save a small amount. The amount may be small, but savings have to be a regular and continuous habit with all the members.
2. “Savings first — Credit later” should be the motto of every SHG member.
3. SHG members take a step towards self-dependence when they start small savings. They learn financial discipline through savings and internal lending. (Advantage: This is useful when they use bank loans.)

Internal lending:

1. The SHG should use the savings amount for giving loans to members.
2. The purpose, amount, rate of interest, schedule of repayment etc., are to be decided by the group itself.
3. Proper accounts to be kept by the SHG

Discussing problems: In every meeting, the SHG should be encouraged to discuss and try to find solutions to the problems faced by the members of the group. Individually, the poor people are weak and lack resources to solve their problems. When the group tries to help its members, it becomes easier for them to face the difficulties and come up with solutions.

Taking bank loan: The SHG takes loan from the bank and gives it as loan to its members.