Explain SHGs .

1.	Explain SHGs .
Answer» SELF\xa0Help Group are small groups of 15-20 members of rural people in particular women belonging to one neighbouhood who meet and saves regularly. The members of the group can take small loan to meet their needs on low interest rate.Functioning:\tMost of the decisions regarding the savings and loan activities are taken by the group members.\tThe group decides as regards the loans to be granted- the purpose, amount, interest to be\tcharged, repayment schedule etc.\tGroup is responsible for the repayment of the loan.\tAny case of non-repayment of loan, by any one member is followed up seriously by other members in the group.\tThe SHG help borrowers overcome the problem of collateral.\tThey provide timely loans for a variety of purposes and at a reasonable interest rate.\tThe group provrdes a platform to discuss and act on a variety of social issues such as health, nutrition, domestic violence, etc.

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