Is it necessary to save money in the SHG formation process?
Developing / inculcating the habit of saving money is important in group formation. The nominal amount thus saved by the members can serve as a corpus to provide loan to the needy and desiring members to overcome his/her problems/difficulties in arranging loans at the time of crisis such as illness/accidents/death etc. Since these problems can’t be foreseen, it in a way becomes essential to save money within a group & saving may at times act as a binding factor of the members within the group.
