Why have self help groups been set up?
Why have self help groups been set up?
These groups aim to facilitate the process of self-empowerment by overcoming social exclusion, enhancing participation in decision-making processes and improving quality of life.
What is the main aim of SHG?
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.
How can I get a loan from SHG?
The SHG members’ inter-se will get a term loan from the group.” repayable in monthly/ quarterly/half yearly instalments in 3-5 years coinciding with cash flow of the activity undertaken by the group. Loan Disbursement : Loan amount can be disbursed fully in ‘cash’.
What is the difference between the bank loan and through SHG?
Answer : Bank loan advances the loan by mortgaging any property as collateral, but SHG advances their loan without any collateral. The rules in the banks make the loan procedure rigid whereas the SHGs give loans to the members itself and without any rigid procedures.
How is SHG loan different from an individual loan?
Answer. (1) LOAN IS SANCTIONED IN THE NAME OF THE GROUP, WHILE FOR AN INDIVIDUAL IT IS SANCTIONED IN THE NAME OF THE PERSON. (2) IN SHG , A PERSON CAN AVAIL LOAN BY THE CONTRIBUTION OF ALL MEMBER, WHILE AN INDIVIDUAL NEED TO SAVE MONEY ALL ALONE.
Who can avail loan from the SHGs?
Interest subvention scheme for Category II Districts (Other than 250 districts). For category II districts, comprising of districts other than the above 250 districts, all women SHGs under DAY- NRLM will be eligible for interest subvention to avail the loan facility at an interest rate of 7%.
How does a SHG become eligible for a bank loan?
a) The SHGs, registered or unregistered, which are engaged in promoting savings habits among their members are eligible to open savings bank accounts with banks. These SHGs need not necessarily have already availed of credit facilities from banks before opening savings bank accounts.
What binds members of a self help group together?
They agree to save regularly and convert their savings into a common fund known as Group Corpus. The members of the group agree to use this common fund and such other funds that they may receive as a group through a common management. The group should devise a code of conduct (Group management norms) to bind itself.
