Self-Help Group (SHG) is a homogeneous group of poor, women. This group is a voluntary one formed on areas of common interest so that they can think, organise and operate for their development. ... SHGs play a crucial role in improving the savings and credit and also in reducing poverty and social inequalities.

Why are self help groups formed 10?

Self Help groups are groups of rural poor people (especially women). The idea is to help them organize themselves, help them financially, provide them work, help them in other matters including domestic issues. ... Government provides such groups loans at very low interests and provides help to market the products of SHG.

What is the main objective of self help groups?

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.