Question

what are self help groups how are they emerging as an important source of credit​

Answer 1

Explanation:

Self help group are group of people who provide mutual support for each other .

Yes , they are emerging as an important source of credit because they charge less interest on the loans than what the moneylenders charge.

Answer 2

Explanation:

Self-Help Groups are a group of 15 to 20 poor villagers especially women who regularly pool money at regular intervals. When a member of the group is in need of money he/she can get the loan from the group at a low rate of interest.Self-Help Groups are emerging as an important source of credit because: They charge less interest on the loans than what the moneylenders charge. All decisions regarding savings and loans are taken by the members of the group. The members can take loans from the groups to meet their daily needs. If the group is regular in its savings they can also take loan from the bank. Loan is sanctioned in the name of the group. The group is responsible for the repayment of loan. They help borrowers to overcome the problem of collateral. They have freed borrowers from the clutches of the moneylenders.