Question

OR
0-29 How as the concept of Self-Help Groups (SHGs)
importont for poor people? Describe any two advantage
of the self-help Groups (SHGs) for the poor.​

Answer 1

SHGs are the group of people from a village which has 10-15 members and collect 20-25 rupees per week from per person of the group and then deposits it in the banks to earn interest and then give loans from that money to the poor needy peoples the main aim of SHGs is that to give loans to the poor people at a very cheap interest rate.

•They get loan at a reasonable rate of interest.

•It helps borrowers to overcome the problem of lack of collateral and documentation.

•It saves them from exploitation of the money lenders.