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.
The main objectives of the SHGs are:
(i) To organize rural poor especially women into small Self Help Groups.
(ii) To collect savings of their members.
(iii) To provide loans without collateral.
(iv) To provide timely loans for a variety of purposes.
(v) To provide loans at responsible rate of interest and easy terms.
(vi) Provide platform to discuss and act on a variety of social issues such education, health, nutrition, domestic violence etc.
