Which among the following gives cheap and collateral-free credit to small farmers?

Commercial banks

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Self-help groups

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Central bank

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Moneylenders

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Solution

The correct option is B Self-help groups
Self-help groups (SHGs) are small groups of poor people. The members of an SHG face similar problems. They help each other in solving these problems. SHGs promote small savings among their members and these savings are kept in a bank.

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Similar questions

In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.

(a) Why might banks be unwilling to lend to small farmers?

(b) What are the other sources from which the small farmers can borrow?

(d) Suggest some ways by which small farmers can get cheap credit.

Which among the following organisation to provide Rs 30,000 crore credit to farmers for irrigation?

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