Question

Imagine yourself to be XYZ, a member of a women Self- Help Group. Analyse the ways through

which your group provides loan to the members.



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Answer 1

Answer:

(i) Self Help Groups pool their savings. (ii) A typical SHG has 15-20 members, usually belonging to one neighbourhood, who meet and save regularly. (iii) Saving per member varies from Rs. 25 to Rs. 100 or more, depending on the ability of the people to save. (iv) Members can take small loans from the group itself to meet their needs. (v) The group charges interest on these loans but this is still less than what the moneylender charges. (vi) After a year or two, if the group is regular in savings, it becomes eligible for availing loan from the bank.

Explanation:

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