Question

For what purpose, small loans are provided to the SHGs members?

Answer 1

Explanation:

(iii) Loans to Self Help Groups are purpose neutral loan. Banks shall embrace concept of Total Financial Inclusion and meet the entire credit requirements of the SHG members namely a) income generation activities, b) social needs like housing, education, marriage etc., and c) debt swapping.

Answer 2

Self-help group members provide small loans for various purposes such as meeting daily financial requirements, household needs, etc.

Explanation:

1. Self-help groups are groups of people for helping each other. They provide loans to their members to meet the short term financial requirements.
2. Small loans are provided to the self-help group members so that they can fulfill their requirements of finances for household purposes, day today operations, etc.
3. Educational loans, house loans, and other loans are also provided to these members at cheaper rates of interest.