Which of the following helps borrowers to overcome the problem of lack of collateral?
Answer
The correct answer is B: Self Help Groups. Self Help Groups (SHGs) pool savings from members and provide loans without requiring collateral, helping poor borrowers who lack assets to pledge to banks or money lenders.
A.Non-Governmental Organization
B.Self Help Groups✓ Correct
C.Civil Societies
D.Pressure Groups
Explanation
Self Help Groups (SHGs) pool savings from members and provide loans without requiring collateral, helping poor borrowers who lack assets to pledge to banks or money lenders.
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