Functions of the Self Help Groups
- One of the important functions is to build the capacity of the poor and also the marginalized groups of society, in the areas of employment and also income generation.
- Collateral-free loans are offered to people who find it difficult to take loans from banks.
- Conflicts are resolved with the help of mutual discussions and also leadership.
- Microfinance services to the poor are provided essentially by these groups.
- They are an intermediate group for formal banking services for the poor in rural areas.
- They encourage habits of saving among the poor.
Self Help Groups
A self-help group refers to a financial group usually made up of 10 to 25 local women, who are aged between 18 to 40. Most of the self-help groups are situated in India, however, can be found in other countries as well, but concentrated in South and South-East Asia.