Self Help Groups are a small group of people who come together and commit to pooling their savings regularly.
The Self Help Groups work:
1. The groups generally comprise of 15-20 people living in the same neighbourhood.
2. They meet and save regularly an amount that’s possible from their income starting from Rs.25 to even Rs.100 or more.
3. A member can take a loan from the group itself and although an interest is charged, it is much lesser than what the moneylenders charge.
4. If the savings are regular, after some time, it can get loans from the banks. In case of a failure of repayment, other members of the group can repay it.
Explanation: Self Help Groups is an excellent idea that can empower the poor and especially, women. It focuses only on self-reliance hence is very effective too.
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