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

SHG is self-help groups. It is an organisation having certain members who contribute their savings and constitute a fund. This fund is used in future for making finance and advances to other members, this process helps people to reduce the functioning of informal sectors of credit. It helps the borrowers to overcome their problem of lacking collateral, besides this it helps women also to become self-dependent and educated.