Table of Contents
Money and Credit Notes class 10
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81. Discuss the functioning of Self-Help Groups (SHGs).
Ans. A Self-Help Group is an innovative way to organise rural and urban poor, particularly women. The following points sum up the functioning of Self Help Groups.
(a) Typically, a SHG has 15-20 members belonging to one neigbourhood. They meet and pool their savings regularly. Savings per member may vary as per the capacity of the member.
(b) The group advances loan to its members at a nominal interest rate without any collateral.
(c) Most of the important decisions regarding savings and loan activities are taken by the group members themselves. The group decides whether loan is to be granted or not, purpose, amount, interest to be charged, repayment schedule etc.
(d) It is the group that is responsible for the repayment of the loan. In case of non-repayment by any member, all the members seriously follow up the repayment.
(e) The regular meetings of the group provides a platform to discuss and act on a variety of social issues such as health, nutrition, domestic violence, etc.
82. Describe the advantages of Self-Help Groups for the poor.
Ans. The advantages of Self-Help Groups for the poor are:
(a) They help the poor to become self-reliant in terms of savings and generating income as the decisions regarding savings are taken by the group members.
(b) They avail the facilities of loans from formal sources like banks at low rate of interest.
(c) They create self-employment opportunities by discussion within their group.
(d) They make it possible for the poor to avail timely finance without any collateral.
(e) The entire group is responsible for the repayment of loan
83. Describe the advantages of Self-Help Groups for the poor.
Ans. The advantages of Self-Help Groups for the poor are:
(a) They help the poor to become self-reliant in terms of savings and generating income as the decisions regarding savings are taken by the group members.
(b) They avail the facilities of loans from formal sources like banks at low rate of interest.
(c) They create self-employment opportunities by discussion within their group.
(d) They make it possible for the poor to avail timely finance without any collateral.
(e) The entire group is responsible for the repayment of loan.
ALSO VISIT :Reflection and refraction of light
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