"Any case of non repayment of loan by any one member is followed up seriously by other members in the group".
Please Explain it in detail
Source:-Economics Class 10
Ch :-Money and Credit.
Answers
Answer:
This means that if any group member in as SHG didn't pay back the loan in the name of the group then the whole group has to suffer. This is only if the group has its account in bank.
Explanation:
1.)the working of banks is followed by a particular mechanism.
2.)it rovides loans with which are been deposited by the depositors. aslo it pays the interest to the depositors with the money which the loan taking people pay as the rate of interest.
3. therefore, non-repayment of loan leads to sinking of bank because then it will not be able to pay the rate of interest to the depositors.
Answer:
This means that if any group member in as SHG didn't pay back the loan in the name of the group then the whole group has to suffer. This is only if the group has its account in bank.
Explanation:
1.)the working of banks is followed by a particular mechanism.
2.)it rovides loans with which are been deposited by the depositors. aslo it pays the interest to the depositors with the money which the loan taking people pay as the rate of interest.
3. therefore, non-repayment of loan leads to sinking of bank because then it will not be able to pay the rate of interest to the depositors.