Question

Answer in brief.

Describe any two features of Self Help Groups.

Answer 1

Features of Self Help Groups:

1. Democratic Set up: SHG is a group of the members, for the members and by the members. Every member of the group actively participates in the functioning of SHGs. Members are responsible for their own future by organizing themselves into SHGs. They elect or select leaders for the proper functioning of the group. The leader is responsible for holding regular meetings and maintaining records and accounts of the group.
2. Collateral Free Loan: SHGs provide small loans to poor individuals for undertaking self-employment projects. Loans are given on the principle of mutual trust and either minimum or no documentation. Generally, the rate of interest is higher than the interest charged by banks. It saves the poor individuals from the clutches of local money lenders. The repayment of loans is ensured timely as all members of the group are responsible for collecting repayment amounts from the members who borrowed the loan.