(a) The role of 'Self Help Groups' (SHGs) in the rural economy:
(i) SHGs organise rural poor, especially women and create self-employment opportunities for them.
(ii) SHGs help borrowers overcome the problem of lack of collateral so that they can get timely loans for a variety of purposes and at a reasonable interest rate.
(iii) SHGs builds blocks of organisation of the rural poor.
(iv) SHGs help woman to become financially self-reliant.
(v) SHGs also provide them a platform to discuss and act on various social issues.
OR
(b) Importance of cheap and affordable credit for the country's development:
(i) Cheap and affordable credit would lead to higher income.
(ii) Many people could borrow for a variety of needs
(iii) It encourages people to invest in agriculture, do business and set up small-scale industries etc.
(iv) It enables more investment which will lead to the acceleration of economic activities.
(v) Affordable credit would also end the cycle of the debt trap.