Which of the following is not a feature of self help groups.
(A) It consists of 15 -20 members or more
(B) Here members pool their savings which act as collateral.
(C) loans are given at nominal rate of interest.
(D) It is a informal source of credit.
Answers
Answer:
D) it is a informal sources of credit
The correct answer is D
Explanation:
SHG stands for Self Help Group, which has followings features and that are:
1. The interest rate is lower than the informal service providers.
2. Decision in relation to the loans and the savings are taken through the members of the group.
3. People from the personal groups came for the motive of savings and lend money among themselves.
4. The members could avail the loans from bank when their savings are regular.
The one which is not a feature of SHG, is that it is a informal source of credit because it belong to the formal sector as they charge much less interest than the informal source of credit who are moneylenders.
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