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MODEL PAPER - 7 [2026] — Social Studies STD 10 — Question

CBSE BoardEnglish MediumSTD 10Social StudiesMODEL PAPER - 7 [2026]3 Marks
Question
Explain the functions of Self Help Group.
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Answer

The functions of Self Help Group (SHG) are as follows:
- Members of SHG can take small loans from the group itself to meet their needs. The group charges interest on these loans but this is still less than what the moneylender charges.
- Small loans are provided to the members for releasing mortgaged land, for meeting working capital needs, for housing materials, and for acquiring assets.
- The group decides as regards the loans to be granted - the purpose, amount, interest to be charged, repayment schedule etc. The group is responsible for the repayment of the loan.
- the SHGs help borrowers overcome the problem of lack of collateral.

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