Question

What are Self-Help Groups (SHGs)?

Options

• Associations of licensed moneylenders

• Government committees for tax collection in villages

• Groups of urban investors pooling money in the stock market

• Small groups of rural poor who pool savings and provide credit to members

Answer 1

Self-Help Groups (SHGs) are small groups of rural poor who pool their savings and provide credit to members. This member-based structure allows the poor to access credit without formal collateral.