economicsChoose if the given statement is true/false.Self-Help Groups help members overcome the problem of lack of collateral.

Choose if the given statement is true/false.


Self-Help Groups help members overcome the problem of lack of collateral.


  1. A
    True
  2. B
    False 

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    Solution:

    The above statement is true.
    A more contemporary approach to loan distribution involves organizing the rural poor, especially women, into small Self-Help Groups (SHGs) and motivating them to save money as it accumulates. A self-help group may have between 15 and 20 members, most of whom live in the same neighbourhood or district. They regularly get together to save money. The amount saved per member can range from Rs 25 to Rs 100 or more, depending on their ability to save. Members may borrow a small sum of money from the organization to cover their needs. The association charges cheaper interest on these loans when compared to other unofficial sources like moneylenders. The majority of crucial choices regarding the amount of savings and other matters are made by the group members jointly.
     
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