The idea is to organise the rural poor, in particular women, into small Self
Help Groups (SHGs) and pool their savings.
(ii) A typical SHG has 15 to 20 members, who meet and save regularly.
(iii) Savings per member varies from ` 25 to ` 100 or more,
depending on the ability of the people to save.
(iv) Members can take small loans from the group itself to
meet their needs.
(v) The group charges interest on these loans, but still
less than what the moneylender charges.
(vi) After a year or two, if the group is regular in
savings, it becomes eligible for availing loans from the bank.
(vii) Loan is sanctioned in the name of the group and is
meant to create self- employment opportunities for the members.
(viii) Most of the important decisions regarding the
savings and loan activities are taken by the group
(ix) The group decides as regards the loan to be
granted?the purpose amount, interest to be charged and repayment schedule,
(x) Any case of non-repayment of the loan by any one
member is followed seriously by other members of the group.
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