Question

What is the basic idea behind the SHGs for poor? Explain in your own words.

Answer 1

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.

Answer 2

Explanation:

The basic idea behind the SHG's for the poor is to provide credit facilities at a cheaper rate and also without much documentation process. An SHG has 15-20 members, usually from the neighbourhood, who meet and save regularly in the range of Rs 25 to Rs 100 or more.

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