question_answer

What are the advantages of SHGs?

Answer:

Advantages of SHGs:

(i) The SHGs help the borrower to overcome the problem of lack of collateral.

(ii) They can get timely loans for a variety of purposes and at a reasonable interest rate.

(iii) SHGs are the building blocks of organisation of the rural poor.

(iv) Not only do they help women become financially self-reliant, the regular meetings of the group provide a platform to discuss and act on a variety of social issues such as health, nutrition, domestic violence, etc.