Q.Explain the objectives of forming a Self Help Group (SHG).

An SHG is a small, voluntary, homogeneous group whose members pool regular savings and lend among themselves democratically.

In the Tamil Nadu HSC Commerce syllabus, a Self Help Group (SHG) is a small association of the economically weaker sections formed to promote thrift and mutual help. Any three features:

1. Small, voluntary and homogeneous group: It usually consists of 10 to 20 members from similar economic backgrounds, most often women, who join voluntarily.
2. Regular savings and common fund: Members contribute small sums at regular intervals, which are pooled into a common group fund. …

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. …