“Self-Help Groups provide stimulus for institutionalised lending, employment generation and women empowerment in the rural areas.” Justify the given statement with valid explanation.

Self-help groups (SHG’s) have, truly, emerged overtime to fill the gap in the formal credit system in the rural India. The formal credit delivery mechanism in India is not only inadequate but has not been fully integrated into overall rural society.As the rural poor do not have sufficient assets for collateral they stay away from the formal credit system. SHGs provide funds at concessional rates to this section of society. In addition to this, SHGs provide support to women for the establishment of small businesses leading to employment generation and women empowerment.