Question

what is the basic idea behind the SHGs for the poor?


self help group (SHGs) are form to organise rural poor, particularly woman into small group and collect their savings. A typical SHGs consists of 15-20 members. these members are generally from the same neighbourhood, who meet and save regularly.The amount saved by the members depend on ability of people to save. The SHG can extend these savings as small loans or micro credit to the needy members from the group itself. Although the group charges interest on these loans ,it is still less then what the
money leaders charged. If the group save regularly for a year or two it becomes eligible for availing loans from the bank




hope this will help you​

Answer 1

Answer:

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SHG is a mutual help group.

They come together to solve their economic issues and earn income.

SHGs provide loans to group members without collateral and at cheaper rates of interest.

Economic empowerment of women.

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