GENERAL KNOWLEDGE

Detailed explanation-1: -The Self Help Groups are playing a crucial role in meeting the credit requirements of the poor by inculcating saving habits among the rural households. The individual savings of many farmers are pooled together to meet the financial requirements of the needy members of the SHGs.

Detailed explanation-2: -Therefore, Rural Credit helps farmers with their livelihood until the crops are ready for sale in the market. The credit can help farmers acquire seeds, tools, fertilizers, and more, which are essential parts of their trade.

Detailed explanation-3: -In summary, increasing access to formal credit increases the income growth of rural households. The availability of formal credit affects income structure as well: it increases both wage income and family operation income.

Detailed explanation-4: -The benefits of microfinance include: Small loans enable entrepreneurs to start or expand micro, small and medium enterprises. Savings help families build assets to finance school fees, improve homes (e.g., install power or running water) and achieve goals. Insurance products can offset the cost of medical care.