What is the basic idea behind the SHGs for the poor? Explain in your own words.
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:
→ To organize rural poor especially women into small Self Help Groups.
→ To collect savings of their members.
→ To provide loans without collateral.
→ To provide timely loans for a variety of purposes.
→ To provide loans at responsible rate of interest and easy terms.
→ Provide platform to discuss and act on a variety of social issues such education, health, nutrition, domestic violence etc.
