ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -SHGs serve as the foundation for the rural poor’s organizational structure for the following reasons: Small loans are made available to SHG members at very low interest rates. SHGs give rural impoverished people possibilities for self-employment.

Detailed explanation-2: -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.

Detailed explanation-3: -SHGs are the building blocks of organisation of the rural poor. Self Help Groups (SHG) is also a platform to act and discuss on other issues such as domestic violence, health, nutrition etc.

Detailed explanation-4: -SHGs have played an important role in enabling financial inclusion in rural areas. It hasfinancially empowered rural women within the family and in local community. SHGs have the required social and financial capital to expedite India’s economic growth.

Detailed explanation-5: -Self Help groups are groups of rural poor people (especially women). The idea is to help them organize themselves, help them financially, provide them work, help them in other matters including domestic issues. Government provides such groups loans at very low interests and provides help to market the products of SHG.