FINANCING SELF HELP GROUPS (SHGS) :

SHG is “a voluntary association of poor formed with the common goal of social and economic empowerment”. In micro financing, a SHG is mainly used as a medium(channel) of credit delivery. It is an voluntary association formed by the members as a group with the objective of eradication of poverty of the members. The members of SHG agree to save regularly to create a common savings called as group corpus. The SHGs encourages the savings habit among group members. The SHG mobilizes the resources of the individual members with a common goal for the overall economic development. The SHG assist banks, financial institutions, in the recovery of loans. SHGs empower women in the developmental activities