Question

Describe any four advantages of Self-Help Groups for the poor.

Answer 1

The advantages of Self-Help Groups for the poor are:

• They help the poor to become self-reliant in terms of savings and generating income as the decisions regarding savings are taken by the group members.
• They avail the facilities of loans from formal sources like banks at low rate of interest.
• They create self-employment opportunities by discussion within their group.
• They make it possible for the poor to avail timely finance without any collateral.