ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -True. Micro Finance is a credit scheme extended to poor through Self Help Groups (SHGs).

Detailed explanation-2: -Self Help Group – Bank Linkage Programme (SHG-BLP) What started as a pilot to link around 500 SHGs of poor to the formal financial institutions during the year 1992-93 has now become the largest microfinance programme in the world, in terms of the client base and outreach. The SHGs which follow ‘Panchsutras’ viz.

Detailed explanation-3: -essential difference between these groups and SHGs is that in the SHG model, the loan is a single loan to the group as a whole, whereas the MFI tracks loans in the name of individual borrowers. to teach the poor people to fish when they cannot reach the river.

Detailed explanation-4: -Micro Credit Scheme or MCS is a loan scheme that is offered by micro financial institutions (MFIs). The scheme is primarily offered for micro enterprise activities such as agricultural activities, artisan activities, and so on.