what is the difference between a SHG and a cooperative society ?
| Self help groups | Cooperatives |
| a. These groups have organised rural poor more so women in collecting their money and in extending loans to its members. | Under cooperatives, members pool in their resources, and from their deposits they seek loans from the banks. |
| b. . SHG charge less rate of interest as compared with any other form of rural banking or even those charged by moneylenders | The deposit from the cooperatives serve as the collateral. |
| c. These groups gradually can seek loans from the bank so as to create employment opportunities for its members.. It is the group as a whole which is responsible for the repayment of the loan. | Loans sought from the banks are extending to other members for the purchase of agricultural equipment, for cultivation, trade etc. Example, farmers cooperatives, weavers’ cooperatives |