what is the besic objective of self help group ? describe any two advantage of self help group for the poor?
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Answer:
The basic objective of the Self Help Groups' (SHG's) is to organize the rural poor, in particular, women, into small groups so that they can pool in their savings. Usually belonging to one neighbourhood, these SHG's consist of 15-20 members who meet and save regularly. The savings per member varies from Rs 25 to Rs 100 or more, depending upon the ability of the people to save.
1. Member of these SHG's can take small loans from the group itself to meet their needs such as for releasing mortgaged land, for meeting working capital needs or for buying housing materials etc. Although the group charges interest on these loans, it is way less than the interest charged by the moneylenders present in villages.
2. Saving on a regular basis, after a year or two, the group also becomes eligible for availing loan from the bank. The loan is sanctioned in the name of the group and is meant to create selfemployment opportunities for the members.