Answer-In the Self-Help Group (SHG)-Bank Linkage Programme, on what primary basis do banks typically extend...

SHG-Bank linkage relies primarily on the groups mutualjoint liability and its track record of internal savings, rotation of funds, and credit discipline built up over time, rather than on individual collateral, government guarantees, or third-party guarantors.

Question

In the Self-Help Group (SH

G -Bank Linkage Programme, on what primary basis do banks typically extend credit to an SHG under the widely followed linkage model, even without individual collateral security from members?

A Government guarantee for each individual loan

B Mortgage of agricultural land by each member

C A fixed subsidy component covering the entire loan amount

D Mutual/joint liability of the group along with its internal thrift and credit discipline

E Personal guarantee of a third-party guarantor for each member

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