what is the difference between self help groups (SHG) and cooperatives ?
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. The rate of interest is much lower than the interest that is charged by the informal sources.
Cooperative societies are a formal source of credit. The rate of interest charged by the cooperative societies is much lower than charged by moneylenders.
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