SELF HELP GROUP & MSME
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is a Self Help Group (SHG) in the context of Indian banking?
An SHG is a small, homogeneous group of 10–20 members, typically from rural or semi-urban areas, who pool savings regularly and extend micro-credit to each other for productive or consumption purposes.
What is the maximum repayment period typically allowed for loans given to SHGs by banks?
Up to 3 to 5 years depending on purpose.
Under the SHG-Bank Linkage Programme, which apex body promoted the model and provides refinance to banks?
NABARD (National Bank for Agriculture and Rural Development) pioneered and actively promotes the SHG-Bank Linkage Programme (SHG-BLP) and provides refinance to commercial banks, RRBs, and cooperative banks for SHG lending.
What is the second loan limit ratio prescribed for SHGs under the SHG-BLP model?
Loan up to 8 times of savings corpus.
What is the minimum and maximum size of membership prescribed for an SHG to be eligible for bank linkage?
An SHG must have a minimum of 10 members and a maximum of 20 members; however, in hilly, tribal, or difficult terrains, the minimum can be relaxed to 5 members.
Which government scheme provides training and skill development support to SHG members?
DAY-NRLM (Deendayal Antyodaya Yojana - National Rural Livelihood Mission).
What does the term 'grading' of an SHG signify before bank linkage?
Grading is an assessment of an SHG's internal functioning, regularity of meetings and savings, quality of record-keeping, and inter-loaning activity, conducted by the bank or an NGO before sanctioning a bank loan.
What is the Shishu loan limit under the MUDRA (Micro Units Development and Refinance Agency) scheme?
Loans up to Rs. 50,000.
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