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Q.

Who helps the borrowers overcome the problem of collateral?


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a

Banks

b

Cooperatives

c

Self-help groups

d

Lenders 

answer is C.

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Detailed Solution

Self-help groups help borrowers overcome the problem of collateral. Self-help groups help poor people in these ways:
  • These groups help people in rural areas overcome the collateral security problem while taking a bank loan.
  • It enables people in rural areas to become financially self-sufficient and don't lead themselves into the situation of a debt trap.
  • They discuss the main issues in society, like domestic violence, health issues, etc., by having meetings and discussions.

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