How SHG (self help group) works in rural areas ?
n.c.e.r.t chapter 3 class 10 s.st economics
Answers
Answer:
1 Member can take loan from the group savings themselves on the decided rate of interest.
2 Due to SHG poor people are able to take loan without having any collaterell
3 Many women as a member of SHG has become economically independent
Rural development is the process of improving the quality of life and economic well-being of people
living in relatively isolated areas. The concept of rural development is very important for a country like India,
where majority of population is under rural areas. For such a country, development in the true sense can be
achieved only when the rural areas are developed.
In order to change the face of socio-economic scenario of the rural areas, Self Help Groups comprising
of women, working under the aegis of North-East Rural Livelihood Project (NERLP) is playing a vital role in
Tuensang district. The NERLP is a multi-state central sector World Bank funded rural poverty reduction project.
The main objective of the NERLP for forming the SHGs in the rural areas is based on forming community
institutions of the poor as opposed to institutions for the poor. The SHGs are informal groups in nature where
members come together towards collective actions for the common cause. SHGs act as the building blocks of
organizing poor and disadvantaged households in the community. The vision behind SHGs approach in a village
is to promote self-reliant and a collective women force towards increase economic and livelihood opportunities
in a sustainable manner.
The SHGs of these three blocks - Chare, Longkhim and Sangsangyu under Tuensang district is
contributing a lot towards economic development and livelihood opportunities of the rural poor since its
inception in 2013. The SHGs of these blocks have been able to organize and marginalize the rural poor to come
together for the development of the rural areas through common efforts.
II. STUDY AREA
The study area for the present research work is confined to the SHGs of the three blocks - Chare,
Longkhim and Sangsangyu under Tuensang District, Nagaland. These are the 3 blocks among 9 Rural
Development Blocks of Tuensang District. The study area lies between 25°50′ N to 26°30′ N latitudes and
94°30′ E to 95°10′ E longitudes. Chare block has 12 villages with 2039 households. Longkhim block has 12
villages with 3272 households. Sangsangyu block has 24 villages with 4419 households. Chare and Longkhim
block comprise of Sangtam Naga community while Sangsangyu block comprise of Chang Naga community