What is the basic idea behind the SHGs for the poor? Explain in your own words.

Self Help Groups is a voluntary organization formed by the women to enhance the microcredit for the members in it and the women members get to indulge in the entrepreneurial activities such as run a canteen, small shops…etc. The main motive of the bank is to accept the deposit and lend that deposit as a loan to investors. In a country like India, an ordinary person will not do not have any excess money to save as a deposit in the bank especially in rural areas. The members of the organization save their money by fixing an amount to be deposited weekly, the amount will be such everyone can afford that. That deposited money can be advanced as a loan to any of the member in the group who is actually in need of it, but the loan will be advanced by the consent the group members. There is transparency in the working of the organization because all the group members will be from the same village and all of them will be neighbours.