What is the basic idea behind the SHGs for the poor? Explain in your own words. P Key concept: S...
What is the basic idea behind the SHGs for the poor? Explain in your own words.
P
Key concept: Self Helpcroups
The SHG (Self Help (sroup) hawe been set in India with an ain to rural poor, especially women. A typical self Help Group comprises \( 15-20 \) people from the same neighbourhood who save some money from their daily wages and collect then together. People can borrow money from these groups during an envergency or in need and they charge a minimum rate of interest from the borrowers. Once the SUG has managed to save a defined amount of money, they are also eligible to take loans from banks. The main purpose of introducing theie self Help croup was to increase small scale employment
opportunities for the rural people so that they could start a
H. Small business to earn a elvelihood.
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