what is the basic idea behind the shgs for the poor

Self-Help Groups (SHGs) are small groups, often focused on women, that aim to organize the rural poor and provide them with financial assistance and self- employment opportunities. The basic idea behind SHGs is to help the poor overcome the lack of access to formal banking services and the need for collateral by providing them with a platform to save money, access credit at reasonable interest rates, and discuss various social issues. By pooling their resources, SHG members can borrow money from the group or banks, start small businesses, and improve their overall financial well-being