ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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3 years or 4 years
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5 years or 6 years
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6 months or 1 year
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a year or two
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Detailed explanation-1: -When the group is regular in its savings for a year or two, banks consider these savings as collateral and provide bigger loans to the self-help groups. This, in turn, is disbursed to the members of the self-help group as loans.
Detailed explanation-2: -SHGs which have availed at least 1st dose of credit and completed the same successfully and eligible for 02nd or subsequent dose of credit with minimum 12 months of satisfactory credit history for existing loan irrespective of dose of credit at another bank are only eligible for takeover.
Detailed explanation-3: -Ans:-Saving account of the SHG should be opened with the Bank within two month of the formation of the SHG.
Detailed explanation-4: -Answer: Following are the advantages of SHG: Members can take loans from the group’s savings themselves on a decided rate of interest. The rate of interest is much lower than the interest that is charged by the informal sources. After two years of regular savings, the SHG can also take a loan from the bank.
Detailed explanation-5: -In an SHG most of the decisions regarding savings and loan activities are taken by its members.