Question

What is the basic idea behind the shg of the poor? Explain in your own words?

Answer 1

Explanation:

The SHGs help poor borrowers to overcome the problem of lack of collateral. They can get timely loans for a variety of purposes at a reasonable interest rate in the name of the SHG of which they are members. The SHGs are thus the building blocks of organisation of the rural poor.

Answer 2

Explanation:

The basic idea behind the SHGs is meant to create self – employment opportunities for the poor. The SHGs help poor borrowers to overcome the problem of lack of collateral. They can get timely loans for a variety of purposes and at a reasonable interest rate.

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