. Most of the important decisions regarding the savings and loan activities are taken by the group members. . The group decides as regards the loans to be granted—the purpose, amount, interest to be charged, repayment schedule, etc. . It is the group which is responsible for the repayment of the loan. . In case of default by any one member, it is followed up seriously by other members in the group. . Because of this feature, banks are willing to lend to the poor women when organised in SHGs even though they have no collateral as such.