Question

Imagine you are a part of a 'Self Help Group' (SHG). Explain the working system of the Self Help Group (SHG) to the new member.

Hint:

Self Help Groups (SHGs) empower people financially by encouraging savings, loans, and skill development.

Answer 1

1. Small Group Formation: SHGs consist of 10-20 members, mostly women, who save money together.
2. Regular Savings and Loans: Members contribute small amounts regularly, and the group provides loans to those in need.
3. Low-Interest Credit: SHGs provide financial help at lower interest rates compared to banks and moneylenders.
4. Empowerment and Skill Development: Members receive training for income-generating activities like tailoring, handicrafts, and dairy farming.
5. Improved Social Status: SHGs promote self-reliance, decision-making, and women's empowerment.