What is the idea behind forming the Self Help Groups or the SHGs?

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What is the idea behind forming the Self Help Groups or the SHGs? Explain the functioning of the Self Help Group or the SHGs?

1 Answer

  1. The basic idea behind formation of SHGs is to create self-employment for the poor, particularly rural poor women. The SHGs help poor borrowers to overcome the problem of lack of collateral.
    They can get timely loans for a variety of purposes at a reasonable interest rate in the name of the SHG of which they are members. The SHGs are thus the building blocks of organisation of the rural poor.

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