Question

What is the main function of Self help groups??

Answer 1

Heyaaa.......
Here is ur answer..
Self help groups are those groups which ar made to help the poorest section of society mostly in rural areas..
Functions...
1st .They provide loan to poor peoples on no interest
Firstly these groups ar started by few peoples. and investment is also low as the investment increases They deposit all money into bank..
The name of that account would be joint account ^_^ ...And when there is requirement anyone can take loan from that bank account..... with no interest...

Answer 2

• the idea is to organize rural poor, in particular women, into small SELF HELP GROUPS (SHGs) and pool (collect) their savings.
• a typical SHG has 15 to 20 members, usually belonging to one neighbourhood, who meet and save regularly.
• saving per member varies from rs. 25 to 100 or more, depending on the ability of the people to save.
• members can take small loans from the groups itself to meet their needs.
• the group charge interest on these loans but this is still less than what the moneylender charges.
• after a year or two, if the group is regular in savings, it becomes eligible for availing loans from the banks.
• loan is sanctioned in the name of the group and is meant to create self employment opportunities for the members.