Micro credit or micro finance is a novel approach to bank with poor. In this approach bank credit is extended to thr poor through____________.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. self-help groups.
Self-Help Groups (SHGs) are indeed a novel approach to banking with the poor. In this approach, bank credit is extended to the poor through self-organized groups of individuals who come together to save regularly and mutually agree to contribute to a common fund.
These savings are then used to provide collateral-free loans to group members for various purposes such as starting small businesses, meeting household expenses, or investing in education and healthcare. The concept of SHGs aims to empower the poor by providing them with access to financial services and promoting self-reliance and entrepreneurship within their communities.