Self-Help Groups and Informal Credit

Self-Help Groups and Informal Credit

Created by
@BrotherlyMoldavite

Questions and Answers

What is the primary reason poor households depend on informal sources of credit?

Difficulty in obtaining loans from banks without proper documents and collateral

What is the primary advantage of Self Help Groups (SHGs) for borrowers?

Overcoming the problem of lack of collateral for loans

What role do Self Help Groups (SHGs) play in the organization of the rural poor?

They are the building blocks of the organization of the rural poor

What is the typical size of a Self Help Group (SHG)?

<p>15-20 members</p> Signup and view all the answers

Who particularly benefits from Self Help Groups (SHGs) in terms of financial independence?

<p>Women</p> Signup and view all the answers

What is the primary reason for poor households to depend on informal sources of credit?

<p>Lack of presence of banks in rural areas</p> Signup and view all the answers

What is the primary function of Self Help Groups (SHGs) in relation to collateral for loans?

<p>Help borrowers overcome the lack of collateral</p> Signup and view all the answers

What is the main advantage of timely loans obtained through Self Help Groups (SHGs)?

<p>Availability for a variety of purposes and at a reasonable interest rate</p> Signup and view all the answers

What is the primary role of Self Help Groups (SHGs) in the organization of the rural poor?

<p>Building blocks of the organisation of the rural poor</p> Signup and view all the answers

What is the key benefit of regular meetings of Self Help Groups (SHGs) beyond financial matters?

<p>Providing a platform to discuss and act on a variety of social issues</p> Signup and view all the answers

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