Which of the following is a difference between self-help groups (SHGs) and microfinance institutions (MFIs) in India?

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Step-by-step analysis:

1. Statement (1): "SHGs are non-profit organisations, while MFIs are for-profit organisations."  
   - Incorrect as a strict difference. SHGs are informal community groups (not formally classified as "non-profit organisations" in every case) and MFIs can be either for-profit (NBFC-MFIs) or non-profit (NGO-run MFIs). So this generalisation is false.

2. Statement (2): "SHGs provide only credit, while MFIs provide a range of financial services."  
   - Partly incorrect. SHGs primarily provide savings and internal lending (credit), and often link with banks; they do more than just credit. MFIs do offer a broader range of services, but saying SHGs provide "only credit" is too absolute.

3. Statement (3): "SHGs are typically small, community-based organisations, while MFIs are larger and more formal institutions."  
   - Correct. This is a reliable distinguishing feature: SHGs are local, small, member-driven groups; MFIs are formal financial providers (often regulated) and typically larger in scale.

4. Statement (4): "SHGs rely on government subsidies for funding, while MFIs rely on commercial sources of funding."  
   - Misleading. SHGs mainly mobilise member savings and obtain bank linkages (and may receive support under government programmes), but do not universally "rely on government subsidies." MFIs do raise commercial funds, but can also use donor or concessional funds.

Conclusion: Only statement (3) is a correct and reliable difference.  
FINAL_ANSWER: c

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