alleryStart learning →Self-Help Groups build their lending pool mainly from
Asale of member farmland
Bsmall savings by each member
Cdirect grants from the RBI
Dforeign currency deposits
Answer & Solution
Correct answer: B. small savings by each member
1. Each member contributes a minimum amount regularly.
2. That habit of **small savings**, or thrift, builds a pool.
3. Credit is then given from the pooled money to needy members.
4. It is repayable in small instalments at reasonable interest rates, which is what makes it workable without collateral.
_Source: syllabus Indian Economic Development, Ch 5 "Rural Development", section 5.3 CREDIT AND MARKETING IN RURA L_
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