08:16
Akash Pandey
SELF HELP GROUPS
A self help group is a voluntary association of the poor people (specially women) who belong to the same socio-economic background. It promotes small saving among its member, which are then kept with a bank. This common fund is then given a name.
Objective
• to built mutual trust and confidence between the bankers and the rural poor people.
• to meet the needs of poor by combining the flexibility, sensitivity and responsiveness of the informal credit system with the strength of technical and administrative capabilities and financial resources of the formal credit institution.
• to encourage banking activities, both on the thrift as well as credit sides, in a segment of the population that the formal financial institution usually finds difficult to cover.
Important Features
• Group functions by adopting democratic principles.
• Every member in the group actively participates in the functioning and they meet on regular basis.
• Loan is sanctioned on trust with less documentation and with no security.
• Quantum of loans are small, frequent and for short period.
• Repayments are always on time and there are very less defaulters.
A self help group is a voluntary association of the poor people (specially women) who belong to the same socio-economic background. It promotes small saving among its member, which are then kept with a bank. This common fund is then given a name.
Objective
• to built mutual trust and confidence between the bankers and the rural poor people.
• to meet the needs of poor by combining the flexibility, sensitivity and responsiveness of the informal credit system with the strength of technical and administrative capabilities and financial resources of the formal credit institution.
• to encourage banking activities, both on the thrift as well as credit sides, in a segment of the population that the formal financial institution usually finds difficult to cover.
Important Features
• Group functions by adopting democratic principles.
• Every member in the group actively participates in the functioning and they meet on regular basis.
• Loan is sanctioned on trust with less documentation and with no security.
• Quantum of loans are small, frequent and for short period.
• Repayments are always on time and there are very less defaulters.
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