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Q.

How many members does a Self Help group have in general?


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a

10-20

b

15-20

c

20-25

d

10-15 

answer is B.

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Detailed Solution

The Self Help group has 15-20 members.
Due to a lack of collateral and fewer banks in rural areas, borrowers are forced to rely on informal lenders, who exploit them by charging higher interest rates. To address this issue, a newer method of loan distribution through Self-Help Groups (SHGs) was implemented in rural areas. In general, an SHG has 15 to 20 members, and each member puts forward their savings based on their ability to save. All these savings are pooled and utilised by the members to take small loans from the group.
    
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