What are Self Help Groups (SHGs)? Discuss the characteristics of SHG formation.

Self Help Groups (SHGs) are small, voluntary associations of people, typically from similar socio-economic backgrounds, who come together to address common problems through mutual help and cooperation. In the context of cooperatives and farmers’ organizations, SHGs play a crucial role in empowering rural communities, especially small and marginal farmers, landless laborers, and women, by promoting savings, credit accessibility, and collective action. SHGs often act as grassroots institutions that help bridge the gap between financial institutions and the rural poor, thereby fostering financial inclusion and social development.

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