Self-Help Groups (SHGs) provide rural people, especially women, with easy access to small, low-interest loans. By pooling savings, members can borrow without relying on local moneylenders who charge very high interest. This ensures financial inclusion and stability in villages. Bank Linkage: ThroughRead more
Self-Help Groups (SHGs) provide rural people, especially women, with easy access to small, low-interest loans. By pooling savings, members can borrow without relying on local moneylenders who charge very high interest. This ensures financial inclusion and stability in villages.
Bank Linkage:
Through the SHG–Bank Linkage Programme, groups build trust with formal banks. They receive loans collectively, making repayment easier and more disciplined. This connection strengthens rural credit systems and promotes responsible borrowing.
Empowerment:
Women gain financial independence, confidence and decision-making power within families. They start small businesses, manage income and become role models for others in their community.
Social Impact:
SHGs develop cooperation, savings habits and entrepreneurial spirit among women, uplifting rural society.
Case Example:
In Andhra Pradesh, NABARD-supported SHGs enabled thousands of women to start micro-enterprises, reduce poverty and escape moneylenders’ traps.
Working features of person M (Organised Sector): Stable Employment: Work is regular, with fixed terms and assured wages. Government Oversight: The workplace is registered and follows labour laws like the Minimum Wages Act and Factories Act. Employment Security: Workers have confirmed working hours aRead more
Working features of person M (Organised Sector):
Stable Employment: Work is regular, with fixed terms and assured wages.
Government Oversight: The workplace is registered and follows labour laws like the Minimum Wages Act and Factories Act.
Employment Security: Workers have confirmed working hours and dependable income.
Overtime Payment: Any extra work is compensated fairly.
Worker Benefits: Paid leave, holidays, provident fund, gratuity and medical facilities are provided.
Safe Environment: Clean drinking water and protected working conditions are ensured.
Retirement Support: Pension and post-retirement benefits are offered.
Formal Systems: Clear procedures and proper documentation are followed.
Working features of person N (Unorganised Sector):
Irregular Jobs: Work is uncertain, low-paid and not continuous.
No Legal Regulation: Very few protections exist due to lack of government control.
No Benefits: Workers do not receive paid leave, overtime pay or medical support.
Job Insecurity: Workers can be removed anytime without reason.
Seasonal or Casual Work: Employment depends heavily on seasons and demand.
Informal Nature: Many tasks are small, self-employed activities with strong dependence on the employer.
Credit can create a painful situation for borrowers when repayment becomes difficult: High interest rates increase the total amount to be paid back. Missed payments add penalties, raising the debt further. Borrowers may take new loans to repay old ones, creating a debt trap. Financial pressure affecRead more
Credit can create a painful situation for borrowers when repayment becomes difficult:
High interest rates increase the total amount to be paid back.
Missed payments add penalties, raising the debt further.
Borrowers may take new loans to repay old ones, creating a debt trap.
Financial pressure affects their income, savings and daily needs.
Stress from lenders and uncertainty harm their mental well-being.
Thus, costly or poorly managed credit makes recovery extremely hard for borrowers.
In some situations, very high borrowing interest rates can make the repayment amount larger than the borrower’s actual income. People who want to begin a small enterprise by taking a loan may avoid doing so because of the high borrowing cost. Therefore, it is important for banks and cooperative sociRead more
In some situations, very high borrowing interest rates can make the repayment amount larger than the borrower’s actual income.
People who want to begin a small enterprise by taking a loan may avoid doing so because of the high borrowing cost.
Therefore, it is important for banks and cooperative societies to provide more loans. This can increase incomes and many people will then be able to borrow at lower rates for different needs.
They could grow crops, do business, set up small-scale industries etc. They could set up new industries or trade in goods.
GDP is an important indicator to assess a country's economic performance. It represents the total market value of all goods and services produced within a nation during a year. GDP (Gross Domestic Product) helps assess the performance of an economy in the following ways: Measures Production: It showRead more
GDP is an important indicator to assess a country’s economic performance. It represents the total market value of all goods and services produced within a nation during a year. GDP (Gross Domestic Product) helps assess the performance of an economy in the following ways:
Measures Production: It shows the total value of goods and services produced in a country.
Indicates Growth: Rising GDP means economic progress and development.
Helps Comparison: It allows comparison of economic performance over different years or between countries.
Improves Policy Decisions: Governments use GDP data to plan economic policies and welfare programmes effectively.
“Self-Help Groups (SHGs) have transferred rural credit systems”. Evaluate this statement by discussing how Self-Help Groups (SHGs) address the limitation of informal credit and empower women borrowers.
Self-Help Groups (SHGs) provide rural people, especially women, with easy access to small, low-interest loans. By pooling savings, members can borrow without relying on local moneylenders who charge very high interest. This ensures financial inclusion and stability in villages. Bank Linkage: ThroughRead more
Self-Help Groups (SHGs) provide rural people, especially women, with easy access to small, low-interest loans. By pooling savings, members can borrow without relying on local moneylenders who charge very high interest. This ensures financial inclusion and stability in villages.
Bank Linkage:
Through the SHG–Bank Linkage Programme, groups build trust with formal banks. They receive loans collectively, making repayment easier and more disciplined. This connection strengthens rural credit systems and promotes responsible borrowing.
Empowerment:
Women gain financial independence, confidence and decision-making power within families. They start small businesses, manage income and become role models for others in their community.
Social Impact:
SHGs develop cooperation, savings habits and entrepreneurial spirit among women, uplifting rural society.
Case Example:
In Andhra Pradesh, NABARD-supported SHGs enabled thousands of women to start micro-enterprises, reduce poverty and escape moneylenders’ traps.
See lessA research student spoke with two people, M and N to learn about their work-related differences. On the basis of the interview conducted with both of them, the student concludes that while person M was working in an organized sector, person N was an employee of a workplace that was functioning in an unorganised way. Analyse the key differences between the two sectors that must have enabled the research student to come to this conclusion.
Working features of person M (Organised Sector): Stable Employment: Work is regular, with fixed terms and assured wages. Government Oversight: The workplace is registered and follows labour laws like the Minimum Wages Act and Factories Act. Employment Security: Workers have confirmed working hours aRead more
Working features of person M (Organised Sector):
Working features of person N (Unorganised Sector):
- Irregular Jobs: Work is uncertain, low-paid and not continuous.
- No Legal Regulation: Very few protections exist due to lack of government control.
- No Benefits: Workers do not receive paid leave, overtime pay or medical support.
- Job Insecurity: Workers can be removed anytime without reason.
- Seasonal or Casual Work: Employment depends heavily on seasons and demand.
- Informal Nature: Many tasks are small, self-employed activities with strong dependence on the employer.
See less‘Credit pushes the borrower into situation from which recovery is very painful’. Support the statement.
Credit can create a painful situation for borrowers when repayment becomes difficult: High interest rates increase the total amount to be paid back. Missed payments add penalties, raising the debt further. Borrowers may take new loans to repay old ones, creating a debt trap. Financial pressure affecRead more
Credit can create a painful situation for borrowers when repayment becomes difficult:
Thus, costly or poorly managed credit makes recovery extremely hard for borrowers.
See less‘Expanding access to loans in the formal sector is important, yet it is equally critical that these loans are accessible to all people for national development.’ Justify the statement.
In some situations, very high borrowing interest rates can make the repayment amount larger than the borrower’s actual income. People who want to begin a small enterprise by taking a loan may avoid doing so because of the high borrowing cost. Therefore, it is important for banks and cooperative sociRead more
- In some situations, very high borrowing interest rates can make the repayment amount larger than the borrower’s actual income.
- People who want to begin a small enterprise by taking a loan may avoid doing so because of the high borrowing cost.
- Therefore, it is important for banks and cooperative societies to provide more loans. This can increase incomes and many people will then be able to borrow at lower rates for different needs.
- They could grow crops, do business, set up small-scale industries etc. They could set up new industries or trade in goods.
See lessDiscuss how GDP helps in assenting the performance of an economy.
GDP is an important indicator to assess a country's economic performance. It represents the total market value of all goods and services produced within a nation during a year. GDP (Gross Domestic Product) helps assess the performance of an economy in the following ways: Measures Production: It showRead more
GDP is an important indicator to assess a country’s economic performance. It represents the total market value of all goods and services produced within a nation during a year. GDP (Gross Domestic Product) helps assess the performance of an economy in the following ways:
- Measures Production: It shows the total value of goods and services produced in a country.
- Indicates Growth: Rising GDP means economic progress and development.
- Helps Comparison: It allows comparison of economic performance over different years or between countries.
- Improves Policy Decisions: Governments use GDP data to plan economic policies and welfare programmes effectively.
See less