Economics (NTSE/Olympiad)  

3. Money and Credit

Self Help Groups (Shg) For The Poor

Self Help Groups (Shg) For The Poor
It helps in pooling the saving of the members, who are poor women. Members can get timely loans for a variety of purposes and at a reasonable rate of interest.
Major feature of SHGs :
1. A typical SHGs can have 15-20 members usually belonging to the same village.
2. The main motive of SHGs to pool the savings of the poor people.
3. Saving per member can vary from Rs. 25 to Rs. 100 or more depending on the ability of the people and the strength of the group.
4. It provides loans to their members at a reasonable rates.
5. After a year or two, if the group is regular in 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 members.
7. Most of the SHGs work in a democratic way.


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