✓ Board-verified↻ asked 3×
Social Science · 2022 · 3 marks
CBSE 2022 · Region 2 · Set 1 · Q6
Explain, why the banks do not lend credit to certain borrowers ?Explain the functions of "Self Help Group".
Explain, why the banks do not lend credit to certain borrowers ?
Explain the functions of "Self Help Group".
Marking-scheme solution
(i) Lack of set of documents to get a loan
(ii) People who have not repaid previous loans
(iii) Issue of high risks
(iv) Irregular incomes
(v) Less chances of repayment of the loan
OR
b) Explain the functions of Self-Help Group in the villages.
(i) SHGs typically have $\displaystyle 15$–$\displaystyle 20$ members, usually from the same neighbourhood, who meet and save regularly.
(ii) Savings per member varies depending upon the ability of the people to save.
(iii) Members take small loans from the group itself to meet their needs.
(iv) The group charges interest on these loans at lesser rate of interest.
(v) After a year or so, if the group is regular in savings, it becomes eligible for availing loan from the bank.
(vi) Loan is sanctioned in the name of the group to create self-employment opportunities for the members.
(vii) Small loans are provided to the members for releasing mortgaged land, for meeting working capital needs, etc.
(viii) People get timely loans for a variety of purposes and at a reasonable interest rate.
(ix) Most of the important decisions regarding the savings and loan activities are taken by the group members.
(x) The group decides as regards the loans to be granted- the purpose, amount, interest to be charged, etc.
(xi) Group is responsible for the repayment of loan
(xii) In case of non-payment of loan by anyone is followed by other members
(xiii) SHGs are the building blocks of organization of the rural poor.
More from Money and Credit
- In one of the small villages, a farmer borrows money from the village moneylender at a high monthly interest…2024 · asked 3×
- Which of the following groups in urban India depend on informal sources to meet their credit needs?2025 · asked 3×
- Read the given source and answer the questions that follow: Arun supervises the work of one farm labourer.…2025 · asked 3×
- Read the following source and answer the questions that follow: Besides banks, the other major source of…2025 · asked 3×
- Which one of the following is the modern form of currency?2023 · asked 3×
- Read the image of the cheque. Identify the cheque number from the given options:2024 · asked 3×
- How does credit play a positive and a negative role? Explain with examples. OR What is a collateral? Why is…2023 · asked 3×
- Two statements are given below. They are Assertion and Reason (R). Read both the statements and choose the…2024 · asked 3×
CBSE Class 10 Social Science past-paper question from the 2022board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.