Self Help Groups (SHGs) can be considered as an informal source of credit. SHGs are typically small, community-based groups consisting of individuals who come together to save money and provide loans to their members. They are usually formed by individuals in low-income communities who have limited access to formal financial institutions.

SHGs operate on a self-help model, where members contribute regular savings, which are then used to provide loans to group members in need. The loans are generally provided at lower interest rates compared to traditional moneylenders, making it a more affordable source of credit for the members.

While SHGs follow certain rules and guidelines, they are not as formal as traditional banking institutions. They often do not require collateral or credit history checks for providing loans. SHGs emphasize trust, mutual support, and collective decision-making, making them an informal but effective source of credit for their members.