Self help groups are the organizations of the rural poor, people of same socio-economic background to pool their savings to provides loans to their members.
Work of self help groups :
(i) Generally self help groups consist of 15− 20 members.
(ii) Members belong to the same neighbourhood.
(iii) They meet regularly.
(iv) Their savings varies form ₹25−₹100 or more.
(v) Only members can take loans from the group itself.
(vi) The group charges interest less than the money lenders.
(vii) All the important decisions regarding savings and loans are taken by the members of the group.
(viii) The group is collectively responsible for the repayment of the loan.
(ix) The regular meeting of the group provides a platform to discuss and act as a variety of social issues such as health, nutrition, domestic violence etc.