What are the basic reasons for the emergence of self-help groups in rural India?

Poor society

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Lack of collateral

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Lack of banks

No worries! We‘ve got your back. Try BYJU‘S free classes today!

High interest of informal credit

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Lack of collateral
Self-help groups (SHGs) are voluntary organisations formed by women to enhance microcredit for the members. Most of the rural poor are landless and uneducated. Hence, SHGs emerged to help them in entrepreneurial activities.

Suggest Corrections

Similar questions

Which of the following programmes deal with Self help groups (SHGs)

Which of the above statements is/are correct

Q13. Consider the following Statements regarding National Rural Livelihoods Mission:

1. It was renamed as Ajeevika in 2011.

2. It aims at mobilizing all rural poor households into Self Help Groups (SHGs).

Identify the correct statements:

Join BYJU'S Learning Program