Choose the most appropriate answer. In an SHG, most of the decisions regarding savings and loan activities are taken by a) Bank. b) Members. c) Non-government organisation.

Answer: The Correct answer is Option (B) – Members

  • Group members are responsible for taking most of the important decisions regarding the loan activities and savings.
  • In Self Help Groups (SHG), the members will collect or pool their savings.
  • To meet the needs of the Members of Self Help Group, they can take small loans from the group itself.
  • The interest on the loans charged by the group will be lesser than interest rates charged by moneylenders.
  • Self Help Group (SHG) will become eligible for availing loans from the banks, provided the Self Help Group is regular in savings for a span of one or two years.
  • About the loans to be granted, the group decides on repayment schedule, the amount, interest to be charged, purpose etc.

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