ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks
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Members
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Non-government organisation
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Cooperative
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Detailed explanation-1: -In an SHG, most of the decisions regarding savings and loan activities are taken by. No worries!
Detailed explanation-2: -In an SHG most of the decisions regarding savings and loan activities are taken by its members.
Detailed explanation-3: -(i) Loans to SHG are provided preferably in the form of cash credit and term loan as per requirement of SHG.
Detailed explanation-4: -Self-help groups use the money pooled in by the members as a source of credit. 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-5: -Banks lend no collateral loans to individuals when organised in SHGs because all group members are responsible for the repayment of loans.