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

Q.6:- What is the basic idea behind the SHGs for the poor? Explain in your own words.

 

Answer:-

The basic idea behind the SHGs is meant to create self – employment opportunities for the poor. The SHGs help poor borrowers to overcome the problem of lack of collateral. They can get timely loans for a variety of purposes and at a reasonable interest rate. Moreover, SHGs are the building blocks of organizations of rural poor.