What is the primary objective of a Self Help Group (SHG) In India ?

Key Points

• Self Help Groups (SHGs) are small, informal associations of people from similar socio-economic backgrounds who come together to solve common problems, especially related to financial inclusion.
• One of the primary objectives of SHGs is to provide micro-finance to its members, enabling them to meet their financial needs and invest in income-generating activities.
• SHGs operate on the principle of mutual help, where members pool their savings and use these funds to provide loans to members in need, at low interest rates.
• SHGs also play an important role in empowering women and promoting social and financial inclusion in rural areas.