What is the basic idea behind the SHGs for poor? Plz explain.

1.shgs are groups organised in rural areas.

2.rural poor,in particular women,organise into small SHGs and collect their savings.

-a typical shg has 15-20 members.

3.members can take small loans from the group itself to meet their needs.

-the group charges less intrest an these loans.

4.after a year or two the group becomes eligible to avail loans from the banks.

-the loan is meant to create self employment oppportunities for the members.

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Self-Help Groups


SHGs are small groups of people who pool their savings and lend money to those members who are in urgent need of money. It usually consists of 15–20 members. The rate of
interest charged on the loan is very low. A regular group with some savings is also eligible for availing bank credit. These groups are created with the purpose of creating self-employment opportunities for the members. SHGs of women have been a great success in India in making women self-reliant.

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 The basic idea behind the SHGs for poor is to poor their savings and provide them loan at reasonable rates of interest.

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 Cheap and affordable credit plays a crucial role for the country’s development.

There is a huge demand for loans for various economic activities. The credit helps people to meet the ongoing expenses of production and thereby develop their business. Many people could then borrow for a variety of different needs. They could grow crops, do business, set up industries etc. In this way credit plays a vital role in the development of a country.    
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  The basic behind the SHGs is to provide a financial resource for the poor through organizing the rural poor especially women, into small Self Help Groups. They also provide timely loans at a responsible interest rate without collateral.

Thus, the main objectives of the SHGs are:
1. To organize rural poor especially women into small Self Help Groups.
2. To collect savings of their members.
3. To provide loans without collateral.
4. To provide timely loans for a variety of purposes.
5. To provide loans at responsible rate of interest and easy terms.
6. Provide platform to discuss and act on a variety of social issues such education, health, nutrition, domestic violence etc.
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The basic idea of Self-Help Group is to help the borrower overcome 

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Sh-gs provide a loan for the poor at low intrest compare to the others

It fulfill argent requirement of poor people
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The basic idea behind formation of SHGs is ti create self-employment for the poor, particularly rural poor women. The SHGs help poor borrowers to overcome the problem of lack of collateral.
They can get timely loans fir a variety of purposes at a resonable interest rate in the name of the SHGs of which they are members. The SHGs are thus the building blocks of organisation of the rural poor.
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The idea behind selfhelp group is to organize rural poor, espacially women into small group and pool their savings.
To help the poor households to get loans at cheaper rates  and without difficulty.
To create Self-employment oppurtinities for the members Ex: For buying seeds, fertilizers, raw material, for acquiring assests like sewing machines, hand looms, cattle, etc.
These groups are meant to make women financially self-reliant.
These groups aim to save rural poor section from the traps of moneylenders who charge high interest rates.
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The basic idea behind the SHGs is meant to create self – employment opportunities for the poor. The SHGs help poor borrowers to overcome the problem of lack of collateral. They can get timely loans for a variety of purposes and at a reasonable interest rate. Moreover, SHGs are the building blocks of organizations of rural poor.
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