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14. Any case of nonrepayment of loan by any one member is followed up seriously
by other members in the group. Because of this feature, banks are willing to lend
to the poor women when organised in SHGs, even though they have no collateral
as such.
15. The SHGs help borrowers overcome the problem of lack of collateral. They can
get timely loans for a variety of purposes and at a reasonable interest rate.
16. SHGs are the building blocks of organisation of the rural poor. Not only does it
help women to become financially self-reliant, the regular meetings of the group
provide a platform to discuss and act on a variety of social issues such as health,
nutrition, domestic violence, etc.