Self-Help Groups' support has brought about a revolutionary change

money-and-credit

#1

Self-Help Groups’ support has brought about a revolutionary change in the rural sector. Which values according to you, are able to support by SHGs?


#2

The basic idea behind formation of Self Help Groups (SHGs) is to create self-employment for the poor particularly rural poor women. A typical SHGs has 15-20 members, who meet and save regularly.
Through SHGs women become economically independent and participate in economic activities. The SHGs encourage team work because it is an organisation. The SHGs lends to its members. Members can take small loans from the group itself to meet their needs.
If the group is regular in savings, it can avail loans from the bank. They are helpful in eradication of poverty. This is because, the SHGs provide, cheap loans to its members to start self-employment activities such as establishing business like shops, small trading units etc.
The values which SHGs are able to support are as fallows
(i) create awareness among rural poors about their unity.
(ii) enable people to support each other in times of need.
(iii) help to eradicate worse situations.
(iv) help to create fraternity among people.