Choose if the given statement is True/False:

Self Help Groups are small groups formed by poor rural women to pool their resources.

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True

False

answer is A.

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Detailed Solution

The above statement is True.
Self Help Groups are small groups formed by poor rural women to pool their resources. They pool their savings together to meet the needs of the SHG.
Any member can take a loan from the SHG without any collateral. If the group regularly saves money, it becomes eligible for a bank loan. The group takes non-repayment seriously. Because of their rules, banks are willing to lend. Members of the Self-Help Group decide the purpose, amount, interest rate, and repayment schedule. Most of the members of an SHG are small farmers who require money to fulfil their working capital requirements.

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