What is the basic idea behind SHGs for poor Explain in your own words?
What is the basic idea behind SHGs for poor Explain in your own words?
The basic idea behind the SHG’s for the poor is to provide credit facilities at a cheaper rate and also without much documentation process. An SHG has 15-20 members, usually from the neighbourhood, who meet and save regularly in the range of Rs 25 to Rs 100 or more.
What are self help groups how do they work explain Class 10?
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. Functioning: The SHG help borrowers overcome the problem of collateral.
What is the basic objective of self help groups?
Self Help Group is group of rural poor willingly organize themselves into a group to wipe out poverty. The major objectives of SHGs are to eradicate poverty. They regularly save to build up a common fund known as group corpus. The members of SHGs use this common fund when they need.
What are self help groups state any four functions?
What are the functions of the SHGs? Initiate and maintain savings within the group: All members must regularly save at least a small amount. These savings allow them to get future credits for their group. Lending loans to the members: The savings made by the SHG must be used to provide loans to members of the group.
How do SHG help the poor in rural areas?
If the SHG functions well for over a year, then it becomes eligible for loans from banks. Such loans are then used for creating self-employment opportunities for the poor. Thus, with the help of SHGs, the rural poor become economically upgraded, and need not to be dependent on moneylenders anymore.
What are the reasons why banks are not willing to lend to certain borrowers?
The banks might not be willing to lend certain borrowers due to the following reasons: (a) Banks require proper documents and collateral as security against loans. Some persons fail to meet these requirements. (b) The borrowers who have not repaid previous loans, the banks might not be willing to lend them further.
