Advantages of SHGs are: 1.The SHGs help the borrower to overcome the problem of lack of collateral. 2.They can get timely loans for a variety of purposes and at a reasonable interest rate. 3.SHGs are the building blocks of organisation of the rural poor. 4.Not only do they help women 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.