Q.Explain any three features of Self Help Group.

An SHG is a small, homogeneous, voluntary group of poor people who save together and use the common fund to give small loans to members, run democratically on the principle of self-help.

A Self Help Group (SHG) is a small association of people, mostly from weaker sections, who come together to solve their common financial and social problems through mutual help. Any three of its features are:

1. Small, voluntary and homogeneous — an SHG usually has 10 to 20 members who join willingly and share a similar economic and social background, which builds trust.
2. Thrift and micro-credit — members save a small fixed amount regularly into a common fund, from which loans are given to needy members at low interest, reducing dependence on money-lenders. …