Mention if the given statement is true or false:

SHGs lend money to everyone.

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True

False

answer is B.

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Detailed Solution

The above statement is false.
SHG, which stands for Self Help Groups, is a group of 15 to 20 members. The groups are formed with the primary goal of saving money and lending it to members in times of need. The money is lent only to the members of the specific group. They are an informal credit source but much safer and cheaper than other informal sources. The interest rate is low, and there are fewer chances of exploitation as the members know each other. The group is also responsible for the repayment of loans if the Self Help Group takes loans from banks.
Thus, the correct statement is, “SHGs lend money to its members.”

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