JKSSB Mock Tests

Which of the following is a difference between self-help groups (SHGs) and microfinance institutions (MFIs) in India?

A. SHGs are non-profit organisations, while MFIs are for-profit organisations.
B. SHGs provide only credit, while MFIs provide a range of financial services.
C. SHGs are typically small, community-based organisations, while MFIs are larger and more formal institutions.
D. SHGs rely on government subsidies for funding, while MFIs rely on commercial sources of funding.
Answer: Option C
Solution (By JKSSB Mock Tests Team)
Self-Help Groups are informal, community-based savings groups, whereas Microfinance Institutions are formal, registered entities that provide a wider array of financial products.
This Question Belongs to: General knowledge mcqs Economics set 1

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