What are Self Help Groups? Describe in brief their functioning.
SELF Help Group are small groups of 15-20 members of rural people in particular women belonging to one neighbouhood who meet and saves regularly. The members of the group can take small loan to meet their needs on low interest rate.
- Most of the decisions regarding the savings and loan activities are taken by the group members.
- The group decides as regards the loans to be granted- the purpose, amount, interest to be
charged, repayment schedule etc.
- Group is responsible for the repayment of the loan.
- Any case of non-repayment of loan, by any one member is followed up seriously by other members in the group.
- The SHG help borrowers overcome the problem of collateral.
- They provide timely loans for a variety of purposes and at a reasonable interest rate.
- The group provrdes a platform to discuss and act on a variety of social issues such as health, nutrition, domestic violence, etc.