Identify the one who helps the borrowers overcome the problem of lack of collateral.

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Self-Help Groups (SHG)

State Government

Employers

Moneylenders

answer is A.

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Detailed Solution

Self-Help Groups (SHG) are the one who helps borrowers overcome the problem of lack of collateral.
Self-Help Groups are small groups of 15-20 residents, primarily women in the same neighbourhood, who meet and save regularly. Members contribute a pool of money from their savings, typically between Rs 25-Rs 100 per head or more, depending on their abilities. Members of the group can obtain a small loan at a low-interest rate to meet their needs. The group is responsible for loan repayment. The SHG assists borrowers in overcoming the issue of collateral by providing loans for different purposes at a reasonable interest rate, which members usually use for essential tasks like releasing mortgaged land, buying seeds and other capital, buying housing materials, etc.

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