Micro-Credit Programmes
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Question (English)
Credit provisions through Self-Help Groups are generally referred to as:
- Macro-credit programmes
- Micro-credit programmes ✓ Correct
- Commercial credit programmes
- Institutional credit programmes
Explanation:
Correct Answer Explanation
Credit provisions through SHGs are generally referred to as micro-credit programmes.
Key Points:
- Micro-credit involves small loans given to poor people who lack access to formal banking.
- SHGs collect minimum contributions from members and create a pool of funds.
- Loans are repayable in small instalments at reasonable interest rates.
- SHGs have helped in empowerment of women across India.
Why Other Options Are Wrong
- A: Macro-credit is not the correct term for SHG lending.
- C: Commercial credit is provided by banks, not SHGs.
- D: Institutional credit comes from formal banking institutions.
📚 About this Topic — CH-5: RURAL DEVELOPMENT
This multiple choice question is from CH-5: RURAL DEVELOPMENT, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-5: RURAL DEVELOPMENT to strengthen your preparation.
