What is the basic idea behind the SHG’s for the poor ? -SST 10th

What is the basic idea behind the SHG’s for the poor ? -SST 10th
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The basic idea behind the SHG’s for the poor is to provide credit facilities at a cheaper rate and also without much documentation process. An SHG has 15-20 members, usually from the neighbourhood, who meet and save regularly in the range of Rs 25 to Rs 100 or more. The amount which is collected by an SHG is utlised  to give loan to a member of the group. Now the group decides as regards the loans to begranted, the purpose, amount, interest to be charged, and its repayment schedule.
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