Explain the role of micro-credit in meeting credit requirements of the poor. | Learn NCERT solution | Education portal Class 11 Indian Economic Development | Study online Unit-6 Rural Development



Q.3:- Explain the role of micro-credit in meeting credit requirements of the poor.

 

Answer:-



SHGs (Self-Help Groups) and micro credit programmes promote thrift in small proportions by a minimum contribution from each member. From the pooled money, credit needs are fulfilled. The member have to repay the credit in small instalments at low rate of interest. The borrowings are mainly for consumption purposes.