What are the advantages of financing through SHGs
?
An economically poor individual gains strength as
part of a group. Besides, financing through SHGs reduces transaction costs for
both lenders and borrowers. While lenders have to handle only a single SHG
account instead of a large number of small-sized individual accounts, borrowers
as part of a SHG cut down expenses on travel (to & from the branch and
other places) for completing paper work and on the loss of workdays in
canvassing for loans.