The Question : How do Self Help Groups help borrowers to overcome the problem of lack of collateral? Explain.
Solution for the question :
(i) People can get timely loans for a variety of purposes and at a reasonable interest rate
(ii) SHGs are regular in their savings which can be used as monetary help.
(iii) Members can take small loans without collateral to meet their needs.
(iv) Due to timely repayment banks also lend loans to SHGs.
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