In the context of microfinance, what does ‘S’ stand for in SHG?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Self.
Full Form : SHG = Self-Help Group
In microfinance, SHG stands for Self-Help Group. These are small, informal groups—usually comprising 10 to 20 members, often women—who come together to save regularly, access small loans, and support each other financially and socially. The term 'Self' highlights the group's independence and mutual cooperation without relying entirely on external agencies. SHGs play a vital role in financial inclusion, especially in rural and underbanked areas, by empowering members to manage their own finances, build credit history, and gain access to formal banking systems. They are a key part of India’s poverty alleviation and women empowerment strategies.