(ii) SHG helps in getting timely loans for a variety of purposes and at a reasonable interest rate. (iii) SHG builds blocks of organisation of the rural poor. (iv) They help women to become financially self-reliant.
Demerits or Disadvantages of Self Employment:
- Paying more taxes: Even if you're a sole person working as a freelancer you would realize that freedom from the corporate world does come with a price.
- No more paid leaves:
- Multitasking all the time:
- Unsteady Pay:
- Socially you are isolated:
- Distractions at home:
Some of the most common self-help group models include:
- Twelve Step Groups – Alcoholics Anonymous (AA), founded in 1935, developed this popular type of self-help group.
- Online Groups – online support communities represent a growing trend in the self-help movement.
The features of Self-Help Group (SHG) are : (i) People form their personal groups for the purpose of savings and also lend money among themselves. (ii) Rate of interest is lower than imformal service providers. (iii) They can also avail loans from banks if their savings are regular.
Answer : The basic objective of the 'Self Help Groups' (SHG's) is to organize the rural poor, in particular, women, into small groups so that they can pool in their savings. Usually belonging to one neighbourhood, these SHG's consist of 15-20 members who meet and save regularly.
An SHG is generally a group of people who work on daily wages who form a loose grouping or union. Money is collected from those who are able to donate and given to members in need. Members may also make small regular savings contributions over a few months until there is enough money in the group to begin lending.
The SHG's help borrowers overcome the problem of lack of collateral while getting loans. Being the building blocks of organizing the rural poor, they also provide a platform to discuss and act on a variety of issues such as health, nutrition, domestic violence, etc.
This group is a voluntary one formed on areas of common interest so that they can think, organise and operate for their development. SHGs function on the basis of co-operative principles and provide a forum for members to extent support to each other.
Self Help Groups (SHGs) are small groups of poor people. The members of an SHG face similar problems. They help each other, to solve their problems. SHGs promote small savings among their members. The savings are kept with the bank.
This research shows that belonging to self-help groups can enable people to not only feel better on an individual basis but more socially included with more community power. Groups provide hope through seeing other people in the group that are at different places in their journeys.
Disadvantages of Self-help
- You may lack the perspective to properly understand the nature of your issues. Your ability to help yourself will only be as good as your ability to be objective and clear about what the nature of your issues is.
- You may lack the knowledge of how to fix your issues.
Self Help Group (SHG) is a group of about 15-20 members who pool their savings together. Members can take loans from the group's savings themselves on a decided rate of interest. SHG borrowers overcome the problem of non-availability of collateral documents.
The one which is not a feature of SHG, is that it is a informal source of credit because it belong to the formal sector as they charge much less interest than the informal source of credit who are moneylenders.
