Skip to content

Explain the functionin… (Class 10 Social Science 2026, Q38b)

questionbuddy.in/q/cbse-10-social-science-2026-32-2-1-q38b-functioning-self-help-groups

Social ScienceCBSE Class 10 · Board exam 2026, set 32/2/1 · 5 marks · Long answer

CBSE Class 10 Social Science 2026: question 38(b)

Set in the CBSE Class 10 board exam of 2026, paper 32/2/1, section D, question 38(b), for 5 marks. Try it first; the hints and our step-by-step solution are below.

Q38(b) · 5 marks · Long answerMoney and Credit

Explain the functioning of 'Self-Help Groups'.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 32/2/1.

Hints

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

Hint 1

Think of who forms an SHG and how many members it has.

Hint 2

Think of how savings and loans are decided within the group.

Hint 3

Think of how the group later links to a bank.

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. A Self-Help Group (SHG) organises poor villagers, especially women, into a small group.

    1 mark

  2. It typically has 15-20 members from one neighbourhood, who meet regularly and save.

    1 mark

  3. Members save Rs 25 to Rs 100 or more, according to what they can afford, and the group's savings are kept in a bank account.

    1 mark

  4. Members decide on loans, the purpose, the amount, the interest rate and repayment. Small loans are given to members for needs such as releasing mortgaged land, working capital or housing, at an interest rate lower than the moneylender's.

    1 mark

  5. After a year or two of regular savings, the group becomes eligible for a bank loan without collateral. Meetings also discuss social issues, and this reduces dependence on informal lenders.

    1 mark

Answer: An SHG is a group of 15-20 members who save regularly, lend to each other at low interest, decide loan terms themselves and later get collateral-free bank loans.

Where the marks are

  • Poor, mostly women, organised into a group (1 mark)
  • 15-20 members who meet and save regularly (1 mark)
  • Savings put in a bank and the group decides on loans (1 mark)
  • Small loans at low interest for needs (1 mark)
  • Bank loan eligibility after regular savings, and discussion of social issues (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 paper2026 board paper, set 32/2/1: 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.