How is the concept of Self Help Groups important for poor people?

cbse
economics
money-and-credit
cbse-class-10
cbse-class-10-social

#1

How is the concept of Self Help Groups important for poor people? Give your view point.

Answer:
Self Help Group

  • SHG’s help in pooling the savings of the members, who are poor people
  • Members can get timely loans for a variety of purposes
  • They get loan at a reasonable rate of interest.
  • It helps borrowers to overcome the problem of lack of collateral and documentation.
  • It saves them from exploitation of the money lenders.
  • This interest income becomes an extra source of income of the members