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How does the SHG-Bank Linkage Program (SBLP) support SHGs in India?

ABy allowing SHGs to operate as commercial banks

BBy linking SHGs with formal banks to provide collateral-free microloans

CBy providing SHGs with high-interest loans from the government

DBy merging SHGs with private corporations

Answer:

B. By linking SHGs with formal banks to provide collateral-free microloans

Read Explanation:

The SHG-Bank Linkage Program (SBLP), initiated by NABARD, connects SHGs to formal financial institutions, enabling them to access collateral-free loans. This enhances the financial inclusion of rural and low-income populations, particularly women.


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