Answer :

Micro-credit groups are highly successful in rural areas owing to larger participation of women. It is believed that women are better creditors for micro-credits groups since they utilize it for fulfilment of basic needs than men. Govt. Banks also encourage rural women to organize themselves into Self Help Groups to obtain flexible loans at low interest rates. These loans are used by the women to create small local business which adds to their household income, thus improving their financial status and independence.

Such schemes have greatly contributed to women empowerment objective of the country.


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