What are the benefits of self-help groups (SHGs) for the rural poor in India? Explain with suitable examples
Answer:
Answer by Student
Some possible benefits of self-help groups (SHGs) for the rural poor in India are:
-
SHGs provide
easy and cheap access to credit
for the rural poor, especially women, who are often excluded from formal sources of credit due to lack of collateral, documentation, etc.
-
SHGs
promote saving and thrift
among the rural poor
, as they require their members to contribute a small amount every month to a common fund, which is used to lend to the members in need.
-
SHGs
empower the rural poor, especially women
, by enhancing their self-confidence, awareness, skills, leadership, etc. They also enable them to participate in decision-making and social activities in their communities.
-
SHGs
support the rural poor, especially women
, by providing them with income-generating opportunities, such as micro-enterprises, handicrafts, animal husbandry, etc. They also help them to market their products and services and increase their income.
- SHGs improve the living conditions of the rural poor, especially women, by addressing their social and economic problems, such as poverty, illiteracy, health, sanitation, domestic violence, etc. They also create a sense of solidarity and mutual help among the members.
Some examples of SHGs in India are
SEWA
(Self-Employed Women’s Association),
Annapurna Mahila Mandal, Mann Deshi Mahila Sahakari Bank, e
tc.
Detailed Answer by Teachoo
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Self-help groups (SHGs) are voluntary associations of 10-20 people, usually from the same socio-economic background , who come together to save and borrow money . They are formed by NGOs, banks, or the members themselves. SHGs have been playing an important role in the rural development of India, especially for the poor and marginalized sections of the society. Some of the benefits of SHGs are:
-
SHGs provide easy and cheap access to credit for the rural poor, especially women, who face many difficulties in getting loans from formal sources of credit , such as banks and cooperatives. These formal sources often demand high interest rates, collateral, documentation, etc., which the rural poor cannot afford or provide. SHGs, on the other hand, lend money to their members from their own savings at low interest rates and without any collateral or paperwork. This helps the rural poor to meet their urgent and productive needs , such as education, health, agriculture, etc.
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SHGs promote saving and thrift among the rural poor, especially women, who are often dependent on their husbands or other family members for money. SHGs require their members to contribute a small amount every month to a common fund , which is used to lend to the members in need. This helps the rural poor to develop a habit of saving and managing their money wisely. It also creates a pool of funds that can be used for emergencies or collective purposes.
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SHGs empower the rural poor, especially women, by enhancing their self-confidence, awareness, skills, leadership , etc. They also enable them to participate in decision-making and social activities in their communities. By joining SHGs, the rural poor, especially women, gain more control over their lives and resources. They also learn to voice their opinions and demands and assert their rights. They also become more aware of various government schemes and programs that can benefit them.
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SHGs support the rural poor, especially women , by providing them with income-generating opportunities , such as micro-enterprises, handicrafts, animal husbandry, etc. They also help them to market their products and services and increase their income. By engaging in productive activities, the rural poor, especially women, improve their economic status and livelihoods . They also become more independent and self-reliant.
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SHGs improve the living conditions of the rural poor, especially women, by addressing their social and economic problems, such as poverty, illiteracy, health, sanitation, domestic violence , etc. They also create a sense of solidarity and mutual help among the members. By working together as a group, the rural poor, especially women, can overcome many challenges and difficulties that they face individually. They can also access various facilities and services that are available in their areas.
Some examples of SHGs in India are:
- SEWA (Self-Employed Women’s Association) : It is a trade union of poor women workers in the informal sector in Gujarat. It provides various services to its members, such as credit, insurance, health care, legal aid, training, etc.
- Annapurna Mahila Mandal: It is a federation of women’s SHGs in Mumbai. It provides micro-credit and micro-enterprises to its members. It also runs community kitchens, crèches, schools, etc.
- Mann Deshi Mahila Sahakari Bank : It is a cooperative bank run by and for rural women in Maharashtra. It provides loans to its members for various purposes. It also offers financial literacy and business development training to its members.
