Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Rural Development

Question:

Who is responsible for decision making regarding loans and savings in a self-help group (SHG)?

Options:

Non-government organisation

Group members

Village Banks

Commercial banks

Correct Answer:

Group members

Explanation:

In a SHG, all the members contribute a small amount to create a pool of money. From the pooled money, credit is given to the needy members to be repayable in small instalments at reasonable interest rates. All the decisions regarding loans, interest rates etc. are taken by the group members itself.