Question

What is the basic idea behind the SHGs for the poor? Explain in your own words.

Answer 1

• The idea behind self help groups is to organize rural poor, especially women into small groups and pool their savings. 
• To help the poor households to get loans at cheaper rates and without difficulty. 
• To create self-employment opportunities for the members 
• e.g.: For buying seeds, fertilizers, raw materials, for acquiring assets like sewing machines, hand-looms, cattle, etc. 
• These groups are meant to make women financially self-reliant. 
• These groups aim to save rural poor section from the traps of moneylenders who charge high interest rates.