Question

What are self help groups? How are they useful to poor people?
Explain with at least 7-8 points

Answer 1

As we have seen, poor households are still dependent on informal sources of credit. ... Moneylenders, on the other hand, know the borrowers personally and hence are often willing to give a loan without collateral. ... The idea is to organise rural poor, in particular women, into small Self ...

Answer 2

self help groups is a group of people usually to one neighborhood having same social and economical backgrounds.
SHGs want to create self employment for the poor, particularly rural poor women.
SHGs help poor borrowers to overcome the problem of lack of collateral.
The SHGs are building blocks of the organization of the rural poor.