<P> This model has attracted attention as a possible way of delivering micro-finance services to poor populations that have been difficult to reach directly through banks or other institutions . "By aggregating their individual savings into a single deposit, self - help groups minimize the bank's transaction costs and generate an attractive volume of deposits . Through self - help groups the bank can serve small rural depositors while paying them a market rate of interest ." </P> <P> NABARD estimates that there are 2.2 million SHGs in India, representing 33 million members, that have taken loans from banks under its linkage program to date . This does not include SHGs that have not borrowed . "The SHG Banking Linkage Programme since its beginning has been predominant in certain states, showing spatial preferences especially for the southern region--Andhra - Pradesh, Tamil Nadu, Kerala and Karnataka . These states accounted for 57% of the SHG credits linked during the financial year 2005--2006 ." </P> <Ul> <Li> An economically poor individual gains strength as part of a group . </Li> <Li> Besides, financing through SHGs reduces transaction costs for both lenders and borrowers . </Li> <Li> While lenders have to handle only a single SHG account instead of a large number of small - sized individual accounts, borrowers as part of an SHG cut down expenses on travel (to and from the branch and other places) for completing paper work and on the loss of workdays in canvassing for loans . </Li> <Li> Where successful, SHGs have significantly empowered poor people, especially women, in rural areas . </Li> <Li> SHGs have helped immensely in reducing the influence of informal lenders in rural areas . </Li> <Li> Many big corporate houses are also promoting SHGs at many places in India . </Li> <Li> SHGs help borrowers overcome the problem of lack of collateral . </Li> </Ul> <Li> An economically poor individual gains strength as part of a group . </Li>

What do you mean by self help group