Yes, it is helpful because to obtain the loan the individual has to keep something as security in the bank. On, that basis only the banks provide the loan but if the loan is taken through the Self help groups than they don’t have to keep any asset as security. It becomes the responsibility of the group to ensure that its members timely repay the loan to the bank.
NOTE- Self help group is an informal group of individuals with poor social and economic background decided to collate to encourage the savings and meet the requirement of its members in case of need and urgency. Their primary focus is to improve the financial condition of its members.
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