What is SHG and its function Class 10?

Answer: SHGs are self help groups. They are formed in rural part of the country among poor people. This policy is implemented to provide self help from others and help others too. People form groups, especially women, and one person collects the whole wages from others and then give it to the needy one.

What are SHGs Class 10 economics?

Self help groups are organisations for the rural poor,particularly women. A SHG usually has 15 to 20 members,belonging to a particular neighbourhood who meet and save regularly. The members of the group can take small loans from the group to meet their needs.

What are the objectives of SHG?

1. To inculcate the savings and banking habits among members. 2. To secure them from financial, technical and moral strengths.

Why SHGs are formed?

Self-Help Group (SHG) is a homogeneous group of poor, women. This group is a voluntary one formed on areas of common interest so that they can think, organise and operate for their development. SHGs function on the basis of co-operative principles and provide a forum for members to extent support to each other.

What are the books kept by a SHG?

SHG Level

• Members Profile.
• Members Saving Register.
• Members Internal Loan Register.
• Members External Loan Register.(Separate loan ledgers are to be maintained for separate funding agencies)
• Members Demand, Collection, Balance, Overdue Registers.
• Cash Book.
• General Ledger.
• Resolution/Meeting Register.

What is bank linkage?

Our Self Help Group-Bank Linkage Programme (SBLP) aims to deliver financial products & services to the section of Indian population that lacks access to formal banking. This segment, often from the lower income, meets its financial needs through informal sources such as money lenders, traders, family and friends etc.

What are the advantages of SHG?

Following are the advantages of SHG: Members can take loans from the group’s savings themselves on a decided rate of interest. The rate of interest is much lower than the interest that is charged by the informal sources. After two years of regular savings, the SHG can also take a loan from the bank.

What are the benefits of SHGs?

Advantages of SHGs are:

• The SHGs help the borrower to overcome the problem of lack of collateral.
• They can get timely loans for a variety of purposes and at a reasonable interest rate.
• SHGs are the building blocks of organisation of the rural poor.

What is the format of cash book?

The format of the cash book is similar to that of a ledger account. Like a ledger account, the cash book consists of two sides – the debit side and the credit side if prepared in ‘T’ format. Like ledger accounts, the balance of the cash book is determined and transferred to the trial balance.