What is the role of self help groups in rural development?

SHG movement is supposed to build economic self reliance of rural poor, overcome misuse and create confidence predominantly among women who are mostly unseen in the social structure. Though there is variety of programmes to alleviate poverty and empower rural people, SHGs have done well in the country.

How self help groups are important for rural areas Class 10?

(i) They help borrowers overcome the problem of lack of collateral. (ii) They can get timely loans for variety of purposes and at a reasonable interest rate. They are building blocks of the organisation of the rural poor. (iii) It helps women to become self-reliant.

How do self help groups help the poor in rural areas?

The self-help group (SHG) approach is a new paradigm into the field of rural development which main objectives are to increase the well-being of the poor people, provide access to resources and credit, increase self-confidence, self-esteem and increase their creditability in all aspects of lives.

What is the role of self help groups?

Self Help Groups (SHGs) are informal associations of people who come together to improve their standard of life. They help to build social capital among the poor, especially women. Hence, they have emerged as the most efficient mechanism for the delivery of microfinance services to the poor.

What is the group approach in rural development?

This programme was based on group approach rural development where the rural poor were organized into self-help groups. Self-Help Groups (SHGs) are small functional groups in rural areas to increase the resource base of the members through the act of thrift and credit among themselves.

What is the role of women in self-help groups?

Prime Minister Modi also said that the role of women in self-help groups was key to development in rural areas. Prime Minister Modi said that women in SHGs were laying the foundation of financial prosperity. (File)

What are Self Help Groups (SHGs)?

Self-Help Groups (SHGs) are small functional groups in rural areas to increase the resource base of the members through the act of thrift and credit among themselves. To form quality groups, rural participation plays a pivotal role in identifying its members who are brought into the SHG-fold through the process of social mobilization.

What is the role of SHGs in rural development?

SHGs help borrowers in the rural areas to overcome the problem of lack of collateral which is a requirement in availing loans from the formal sector. Borrowers also get timely loans where the cost of borrowing or the interest rate is much lower than informal moneylenders.