Question

What do you understand by self-help group?

Hint:

SHGs empower rural communities, especially women, through savings and collective action.

Answer 1

Self-Help Groups are small groups, often consisting of 10–20 members, usually women, who save money collectively and use it for lending to members at low interest. SHGs empower people, especially rural women, by promoting financial independence, decision-making, and entrepreneurial activities. They provide access to microcredit without depending on moneylenders, encourage thrift, and build confidence among members. Many SHGs are linked to banks under government schemes, making them an effective tool for poverty reduction and rural development. Beyond finance, SHGs also play a social role in raising awareness on health, education, and community development.