CBSE Class 10 Social Science 2025: question 33(A)
Set in the CBSE Class 10 board exam of 2025, paper 32/4/1, section D, question 33(A), for 5 marks. Try it first; the hints and our step-by-step solution are below.
Q33(A) · 5 marks · Long answerMoney and Credit
Imagine you are a part of a ‘Self Help Group’ (SHG). Explain the working system of the Self Help Group (SHG) to the new member.
Source: official question paper from cbse.gov.in (PDF). See it in the full 2025 board paper, set 32/4/1.
Hints
Open one hint at a time and try again before the next.
Hint 1
Think about who joins an SHG and how many members it has.
Hint 2
What do members do at their regular meetings, and where do their first loans come from?
Hint 3
How does the group get bank loans, and who ensures they are repaid?
Step-by-step solution
Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.
- 1 mark
Nature of SHG: Dear new member, a Self Help Group is a small organisation of the rural poor, mostly women, who come together to help one another with savings and credit.
- 1 mark
Size: It usually has 15-20 members from the same neighbourhood, so everyone knows and trusts one another.
- 1 mark
Savings: Members meet regularly and save money. The amount varies from ₹25 to ₹100 or more per member, depending on what each can afford.
- 1 mark
Loans within the group: Members can take small loans from the group's pooled savings at a very low rate of interest. The group itself decides on savings, loan amounts, interest and repayment.
- 1 mark
Bank loans and repayment: If the group saves regularly, it becomes eligible for bank loans, which are sanctioned in the group's name without collateral to create self-employment. The group is responsible for repayment, and other members follow up seriously if one member defaults. The SHG also serves as a platform to discuss health, nutrition and domestic violence.
Answer: An SHG is a group of 15-20 neighbours, mostly women, who save regularly, lend to one another at low interest, take collateral-free bank loans in the group's name, and take joint responsibility for repayment.
Where the marks are
- Explains that an SHG works with the rural poor, especially women (1 mark)
- States the size of 15-20 members from one neighbourhood (1 mark)
- Explains regular savings of ₹25-100 or more (1 mark)
- Explains small loans from the group at low interest, with the group taking the decisions (1 mark)
- Explains bank loans without collateral, group responsibility for repayment, or discussion of social issues (1 mark)
Revise the chapter
- Chapter: Money and Credit (notes, formulas, where marks are lost and every past question)
- Topic: Self-Help Groups for the Poor
More questions from Money and Credit
- Sample paper 2024-25, Q33(A) · 5 marksMiss X wants to start a savoury food store in her village. She wants to supplement her income to raise the sta…
- Sample paper 2023-24, Q33(B) · 5 marks"Self-help groups eliminates poverty and empowers women". Substantiate with suitable answer.
- 2023 board paper, set 32/4/1, Q33(A) · 5 marksJustify the role of 'Self Help Groups' in the rural economy.
The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.