Question

What are self help groups? How are they emerging as an important sources of credit and empowerment?

Answer 1

Shown below in pictures

Answer 2

Explanation:

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