In a Self Help Group, who makes the key decisions about loans — the bank, an NGO, or the group members themse…

Question

In a Self Help Group, who makes the key decisions about loans — the bank, an NGO, or the group members themselves?

Accepted Answer

## Model Answer **Answer: (B) The group members themselves** In a Self Help Group, most important decisions regarding savings and loans — purpose, amount, interest rate, and repayment schedule — are taken by the group members themselves. *Source: Money and Credit, Chapter 3 (Self-Help Groups for the Poor)* --- ## Explanation The passage explicitly states: *"Most of the important decisions regarding the savings and loan activities are taken by the group members."* Examiners expect you to identify Option B. Remember: the bank only sanctions the loan in the group's name, but **decision-making power lies with the members** — this is the defining feature of SHGs.

Social Science (087) — AI-generated practice question