whats the difference between SHG. and a cooperative?
Answers
Answered by
98
HEYA...!!!!
SHG's are groups of people who lend money to the people who require it urgently with the help of their savings.
They consist of 10-20 members.
The rate of Interest charged is very low.
These groups are mainly created for providing employment to their own members.
Mainly seen in Rural areas.
Cooperatives :
They come under formal sources of credit.
They take loans from banks.
The members of cooperatives save their resources and provide loans to the needy.
eg - weavers cooperatives, industrial workers cooperatives, etc.
# HOPE IT HELPS #☺
SHG's are groups of people who lend money to the people who require it urgently with the help of their savings.
They consist of 10-20 members.
The rate of Interest charged is very low.
These groups are mainly created for providing employment to their own members.
Mainly seen in Rural areas.
Cooperatives :
They come under formal sources of credit.
They take loans from banks.
The members of cooperatives save their resources and provide loans to the needy.
eg - weavers cooperatives, industrial workers cooperatives, etc.
# HOPE IT HELPS #☺
Answered by
60
Both SHG and Cooperative societies, save money and can get loans from bank. The difference that lies here is that SHG's are usually of poor people, and found in rural areas, whereas cooperative societies are found in urban areas and consist of workers, industrial cooperatives etc.
Hope this answer helps
Hope this answer helps
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