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Assertion : SHG is a formal source of credit.
Reason : It helps the borrower to overcome the problem of lack of collateral.
Reason : It helps the borrower to overcome the problem of lack of collateral.
- a)Both A and R are true and R is the correct explanation of A
- b)Both A and R are true and R is not the correct explanation of A
- c)A is correct but R is wrong
- d)A is wrong but R is correct
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Assertion : SHG is a formal source of credit.Reason : It helps the bor...
Correct answer is D. A is wrong but R is correct
Explanation:
Self-Help Groups (SHGs) are informal associations of people who choose to come together to find ways to improve their living conditions. It can be defined as self governed , peer controlled information group of people with similar socio-economic background and having a desire to collectively perform common purpose.
Self-Help Groups are emerging as an important source of credit because:
1. They charge less interest on the loans than what the moneylenders charge. The members can take loans from the groups to meet their daily needs
2. All decisions regarding savings and loans are taken by the members of the group.
3. If the group is regular in its savings they can also take loan from the bank. Loan is sanctioned in the name of the group.
4. They help borrowers to overcome the problem of collateral and have freed them from the clutches of the moneylenders.
Explanation:
Self-Help Groups (SHGs) are informal associations of people who choose to come together to find ways to improve their living conditions. It can be defined as self governed , peer controlled information group of people with similar socio-economic background and having a desire to collectively perform common purpose.
Self-Help Groups are emerging as an important source of credit because:
1. They charge less interest on the loans than what the moneylenders charge. The members can take loans from the groups to meet their daily needs
2. All decisions regarding savings and loans are taken by the members of the group.
3. If the group is regular in its savings they can also take loan from the bank. Loan is sanctioned in the name of the group.
4. They help borrowers to overcome the problem of collateral and have freed them from the clutches of the moneylenders.
Most Upvoted Answer
Assertion : SHG is a formal source of credit.Reason : It helps the bor...
The assertion is that SHG (Self-Help Group) is a formal source of credit, while the reason given is that it helps the borrower to overcome the problem of lack of collateral. Let's evaluate whether both the assertion and reason are true and whether the reason explains the assertion correctly.
• Assertion: SHG is a formal source of credit.
This assertion is true as SHGs are registered under government schemes and are recognized as formal institutions.
• Reason: It helps the borrower to overcome the problem of lack of collateral.
This reason is also true as SHGs provide credit to their members based on mutual trust and cooperation, without requiring any collateral.
However, the reason given does not correctly explain the assertion. While it is true that SHGs help borrowers overcome the lack of collateral, this is not the only reason why SHGs are considered a formal source of credit. Other factors that make SHGs a formal source of credit include:
• SHGs are registered under government schemes and are recognized as formal institutions.
• SHGs follow a set of rules and regulations, maintain proper records, and undergo regular audits.
• SHGs provide credit to their members based on mutual trust and cooperation, and also offer other services such as savings, insurance, and entrepreneurship training.
Therefore, option D is the correct answer as the assertion is true, but the reason is not the correct explanation of the assertion.
• Assertion: SHG is a formal source of credit.
This assertion is true as SHGs are registered under government schemes and are recognized as formal institutions.
• Reason: It helps the borrower to overcome the problem of lack of collateral.
This reason is also true as SHGs provide credit to their members based on mutual trust and cooperation, without requiring any collateral.
However, the reason given does not correctly explain the assertion. While it is true that SHGs help borrowers overcome the lack of collateral, this is not the only reason why SHGs are considered a formal source of credit. Other factors that make SHGs a formal source of credit include:
• SHGs are registered under government schemes and are recognized as formal institutions.
• SHGs follow a set of rules and regulations, maintain proper records, and undergo regular audits.
• SHGs provide credit to their members based on mutual trust and cooperation, and also offer other services such as savings, insurance, and entrepreneurship training.
Therefore, option D is the correct answer as the assertion is true, but the reason is not the correct explanation of the assertion.
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Assertion : SHG is a formal source of credit.Reason : It helps the bor...
The correct answer is (A) because SHG's are working under the supervision of RBI (Reserve Bank of India). The SHG's mainly help women which don't have enough coleteral to borrow loan and repay it. So the SHG's provide loan at a very low rate of interest. hence the option A is correct ( both (a) and (r)are correct and is correct explanation.)
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Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer?
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Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer?.
Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer?.
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Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice Class 10 tests.
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