“SHGs are the building blocks of organization of the rural poor.” How have these groups been successful in reducing the dependence of poorer households on other informal sources of credit?(5m)
(CLASS 10 ECONOMICS - MONEY AND CREDIT)
Answers
Concept introduction:
A firm, corporation, group, or other type of body made up of one or more individuals and serving a specific function is referred to as an organization or organization. The word is derived from the word organon, which also refers to an organ and several tools or instruments.
Explanation:
We have to answer the question.
A question has been given to us.
SHGs serve as the foundation for the rural poor's organizational structure for the following reasons: Small loans are made available to SHG members at very low interest rates. SHGs give rural impoverished people possibilities for self-employment. Women participate extremely actively in how these groups operate.
Final answer:
Hence, the final answer of the question is ->
Rural poor have self-employment prospects thanks to SHGs. The SHGs offer very low interest rate modest loans to its members. In the operation of these organizations, women take a highly active part and are highly participant in the organization's activities.
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