Question

What is the status of coverage through micro-finance and SHGs in reaching rural borrowers?

Options

• Coverage is universal across all villages

• Coverage through micro-finance and SHGs is still limited

• Coverage applies only to large industries

• Coverage has replaced all other credit sources completely

Answer 1

Although micro-finance and SHGs have expanded credit access, their coverage is still limited. This limitation means many rural poor, particularly small and marginal farmers, remain underserved by formal credit.