Economy, asked by mounika12364, 1 year ago

What are self help groups

Answers

Answered by vishwaram
2

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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

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Answered by smitchandi1
2

self help groups are those groups which are set in villages by villagers themselves to help villagers by giving them loans upto a particular limit.

Every member of SHG puts some amount of money (depends on how much they want to put or depends on their monthly income ) in a common money box from which any person of village can access that money in times of crisis.

Bank usually don't give loans to some people who don't have collateral or has very less monthly income because he/she may not afford to pay loan. But if the same person is attached with SHG then company gives him/her the loan even if he/she don't have collateral because if that particular person is not ble to afford to repay the loan then the money will be repaid by the money stored in common money box of the village in behalf of that person who received loan from the bank

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