Small Help Groups:
An easy software to manage the Small Business.
A SHG group is a financial intermediary which consists local fewer members. Members make small regular savings contributions
over a few months until there is enough capital in the group to begin lending. Funds may then be lent back to the members or
to others in the village for any purpose. In India, many SHGs are ‘linked’ to banks for the delivery of microcredit.
Many self-help groups, especially in India, borrow money from banks once they have accumulated a base of their own capital
and have established a track record of regular repayments.
This model has attracted attention as a possible way of delivering microfinance services to poor populations that have
been difficult to reach directly through banks or other institutions. “By aggregating their individual savings into a
single deposit, self-help groups minimize the bank’s transaction costs and generate an attractive volume of deposits.
Through self-help groups the bank can serve small rural depositors while paying them a market rate of interest.