State the advantages of SHG.

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Provide loans at cheap and affordable price

Requires no documents

Requires no collateral

All of the above

answer is D.

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Detailed Solution

The advantages of SHG are that it provides loans at a cheap and affordable price, requiring no documents or collateral.
An SHG is a group of 10–15 members who save and meet regularly to discuss various issues prevalent in our society. They save for one year or two, then are eligible to take loans from banks and create self-employment opportunities in the villages. They provide loans to the members of the cooperative societies for the purchase of agricultural implements, cultivation and agricultural trade, fishing, house construction, and other expenses. They are a good source of informal credit as they don't require any documentation, collateral, or security to give loans. They also give loans at a very minimal rate of interest to their members.

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