Q13 of 38 Page 52

Choose the most appropriate answer.

In a SHG most of the decisions regarding savings and loan activities are taken by:

In Self-help groups most of the decisions regarding savings and loan activities are taken by members because the funds are collected by the contribution of all the members of self-help groups so there is no any owner or worker, all are their own owner and own servants. They can just discuss and then take decisions where majority agree.

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11

In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.

(a) Why might banks be unwilling to lend to small farmers?


(b) What are the other sources from which the small farmers can borrow?


(c) Explain with an example how the terms of credit can be unfavorable for the small farmer.


(d) Suggest some ways by which small farmers can get cheap credit.

 12

Fill in the blanks:

(i) Majority of the credit needs of the…….households are met from informal sources.


(ii) …………costs of borrowing increase the debt-burden.


(iii) …………issues currency notes on behalf of the Central Government.


(iv) Banks charge a higher interest rate on loans than what they offer on …………….


(v) …………..is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

 13

Formal sources of credit does not include

 14

The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.