What are self help groups explain in detail how they work and function

Aself-help group(SHG) is a village-basedfinancial intermediaryusually composed of 1020 local women or men. A mixed group is generally not preferred. Most self-help groups are located in India, though SHGs can also be found in other countries, especially in South Asia and Southeast Asia.

Members make small regular savings contributions over a few months until there is enough capital in the group to begin lending. Funds may then be lent back to the members or to others in the village for any purpose. In India, many SHGs are 'linked' to banks for the delivery ofmicrocredit.