Q.There are ......... distinct modes of credit to self help groups

Credit is given to SHGs through three distinct modes, so the answer is (c) 3.

The SHG-Bank Linkage Programme channels bank credit to self help groups. The linkage works through three distinct models/modes:

• Model I — banks form and finance the SHGs directly.
• Model II — SHGs formed by NGOs/agencies but financed directly by banks. …

There are 3 distinct modes of credit available to Self Help Groups, option (a).

Credit is extended to Self Help Groups (SHGs) mainly through the SHG-Bank Linkage Programme, which operates in three distinct modes (models):

1. Banks themselves form and finance the SHGs directly.
2. SHGs are formed by NGOs or other agencies but are financed directly by banks. …

The answer is option (a) 3; credit flows to Self Help Groups through three distinct modes.

Self Help Groups (SHGs) obtain institutional credit mainly through the SHG–Bank Linkage Programme. The three distinct modes by which credit is routed are:

1. Banks lend directly to the SHGs, which have been formed and nurtured by the banks' own staff.
2. Banks lend to SHGs that have been formed and promoted by NGOs and other agencies, with the agency acting as facilitator. …