Question

When a self-help group avails a loan from a bank, in whose name is the loan given?

• A. In the name of the leader of the group
• B. In the name of the richest member of the group
• C. In the name of the self-help group
• D. In the name of the panchayat leader of the village

Answer 1

The correct option is C In the name of the self-help group

Self-help group members themselves take important decisions regarding the savings and the loan activities of the group. Banks recognise this unity of the self-help group and disburse loans in the group's name, even if it has no collateral. These loans help people in self-employment.