Which of the following is not a benefit of SHGs?

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Women are becoming economically independent

Poor members are required to provide collateral

They can avail loans from a bank

None of the above

answer is B.

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Detailed Solution

Poor members are not required to provide collateral is not a benefit of SHGs.
Members may borrow money at a predetermined interest rate from the savings of the organization. Compared to the interest rates paid by unofficial sources, this rate is significantly cheaper. The SHG has the option to borrow money from the bank after two years of consistent saving. The loan, which is made in the group's name, gives the members several options to work for themselves. The SHG allows its underprivileged members to apply for loans without providing any security. As SHG participants, many women have achieved economic independence. As a result, women are now more empowered in rural areas. And in fact, poor members are not required to have collateral.

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