[[1]] help in pooling the savings of their members, who are poor women to meet their credit needs.

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

SHGs help in pooling the savings of their members, who are poor women, to meet their credit needs.
Group members make the most critical decisions about loan activity and savings.
In Self-help groups (SHG), participants build or pool their savings to meet their needs. In addition, self-help group members may borrow small sums of money from the group.
Compared to moneylenders, the group will charge lower interest rates on loans. A Self Help Group (SHG) will be qualified to seek loans from banks if it continuously saves money over one or two years. The committee determines the purpose, amount, interest rate, and timetable for repaying the loans.

Watch 3-min video & get full concept clarity