ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A typical SHG has 15-20 members, usually belonging to one neighbourhood, who meet and save regularly. Saving per member varies from Rs 25 to Rs 100 or more, depending on the ability of the people to save. People can borrow money from these groups during an emergency or when they are in need.

Detailed explanation-2: -A SHG is a community-based group with 10-25 members. Members are usually women from similar social and economic backgrounds, all voluntarily coming together to save small sums of money, on a regular basis.

Detailed explanation-3: -Self Help Groups are groups of 10 to 20 women or men who want to improve their living conditions by setting up their own savings and loan fund.

Detailed explanation-4: -The group takes decisions about loans to be granted-the purpose, amount, interest to be charged, repayment schedule etc. Any case of non-repayment of a loan by any one member is followed up seriously by other members of the group. Thus, the SHGs help borrowers overcome the problem of lack of collateral .

Detailed explanation-5: -Self-help groups are informal groups of people who come together to address their common problems. While self-help might imply a focus on the individual, one important characteristic of self-help groups is the idea of mutual support – people helping each other.