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Explain how… (Class 10 Social Science SQP 2026-27, Q36)

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Social ScienceCBSE Class 10 · Sample paper, session 2026-27 · 3 marks · Short answer

CBSE Class 10 Social Science sample paper 2026-27: question 36

From the official CBSE sample question paper for 2026-27, section D, question 36, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q36 · 3 marks · Short answerMoney and Credit

Explain how Self-Help Groups (SHGs) help banks to minimize risk when providing loans to poor women, who do not have any collateral.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

Open one hint at a time and try again before the next.

Hint 1

Collateral protects a bank. What takes its place in an SHG?

Hint 2

Who knows best how each member is using the loan?

Hint 3

Think about what regular savings and meetings say about the group.

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. Members are collectively responsible for repayment, so the bank has an assurance of repayment even without collateral.

    1 mark

  2. The group monitors each member's use of the loan and follows up on overdue repayments, which lowers the chance of default.

    1 mark

  3. Regular savings and organised meetings show discipline and reliability, so banks are confident about lending at reasonable interest.

    1 mark

Answer: SHGs reduce banks' risk through group responsibility for repayment, peer monitoring and follow-up, and the discipline shown by regular savings.

Where the marks are

  • Collective responsibility for repayment (1 mark)
  • Group monitoring and follow-up of defaults (1 mark)
  • Regular savings and meetings build trust (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Money and Credit, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: every question, by section.

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.