Question

What is the idea behind forming the SHGs ? Explain the functioning of SHGs

Answer 1

SHGs are the self help groups especially being formed to uplift the livelihood by combined effort of the groups. Usually SHGs are having 10..12 members. All the members starts their group interaction and activity with small savings by each one of the member.This small saving is combindely kept in the saving accounts of the SHG and it is used to help the members in need. This interaction and social effort increases the enthusiasm and also the financial stability among the members,which in turn allow the members to uplift their livelihood,which was not earlier possible individually.

Answer 2

(1) atypical shgs can have 15 to 20 members usually belonging to the same village.

(2) saving member can vary from 25 to 100 or more depending on the ability of the people and the strength of the group.

(3)The main motive of the shg is to pool the savings of the poor people.

(4) message please provide loans to their members at a reasonable rate.

(5) after a year or two if the group is regular and savings it becomes eligible for bank loans.

(6) loan is sanctioned in the name of the group with the main motive to create self employment opportunities for the numbers

(7) in the recent years many commercial and cooperative banks have provided lost to this message this war releasing mote mote Gad land for meeting working capital reach for housing materials for acquiring assets life Sewing Machines Handlooms.