Question

Write a short note on the Self help group (SHG).

Answer 1

A self-help group (SHG) is a village-based financial intermediary committee usually composed of 10–20 local women or men. A mixed group is generally not preferred. Most self-help groups are located in India, though SHGs can be found in other countries, especially in South Asia and Southeast Asia.

Answer 2

Self Help Groups (SHGs) are recent phenomena. An SHG is comprised of small number of people; like 15 20 members. The members pool their savings. The collection is then utilised to lend small amounts of money which may be required by any of the members. The group charges interest on the loan. The arrangement of loans through Self Help Groups is also known as microfinance because the small amount of loan is involved.

It was the Grameen Bank of Bangladesh which began experimenting with microfinance. The founder of Grameen Bank, Mohammad Yunus was conferred with Nobel Prize in 2006 for his efforts at improving the lot of the poor.

SHGs have helped immensely in reducing the influence of informal lenders in rural areas. Many big corporate houses are also promoting SHGs at many places in India.

A self-help group ( SHG ) is a village-based financial 
intermediary committee usually composed of 10?20 local 
women or men. A mixed group is generally not preferred. Most 
self-help groups are located in India, though SHGs can also 
be found in other countries, especially in South Asia and 
Southeast Asia. 
Members make small regular savings contributions over a few 
months until there is enough capital in the group to begin 
lending. Funds may then be lent back to the members or to 
others in the village for any purpose. In India, many SHG's are 
'linked' to banks for the delivery of micro-credit

The basic idea behind formation of self help group is to create self employment for Poor particularly rural poor women. The SHGs have 15 to 20 members who meet and save regularly. Through self help group women become economically Independent and participate in economic activities the self help group encourages teamwork because it is an organisation. the self help group lead to its members members can take small loans from the group itself to meet their needss. if the group is regular in saving, it is available to loan from banks they help in eradication of poverty this is because the self help group provide cheap loans to its members to start self employment activities such as publishing small businesses like the shops small trading unit etc.

SHGhelp the borrower overcome the problem of collateral.They can get timely loans for a variety of purpose at a responsibleinterest rate .SHGare the building block of organisation of rural poor .SHG helps women to become financially self reliant .