Question

Which of the following challenges is most commonly faced by SHGs in India?

• A. Excessive government control
• B. Lack of access to formal financial institutions
• C. Overdependence on international loans
• D. High profit margins

Answer 1

Answer:

B. Lack of access to formal financial institutions

While SHGs have improved financial inclusion, many groups still face challenges such as limited access to formal financial institutions, inadequate credit availability, and financial illiteracy. These barriers can limit the potential of SHGs to expand and achieve full financial empowerment.