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