Who is responsible for decision making regarding loans and savings in a self-help group (SHG)?
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: Group members
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.
In a self-help group (SHG), the decision-making regarding loans and savings is the responsibility of the group members themselves. They collectively decide on the amount of savings, loan amounts, and the terms of repayment, fostering a sense of ownership and accountability within the group.