Question

How is SHG able to provide credit particularly
to its women members without any collateral?

Answer 1

Answer:

It is the group as a whole which is responsible for the repayment of the loan. In case, of non repayment it is taken up in a serious manner by the group members. Thus, because of this, banks offer money to women organised in these groups without any collateral.

Answer 2

Answer:

It is the group as a whole which is responsible for the repayment of the loan. In case, of non repayment it is taken up in a serious manner by the group members. f. Thus, because of this, banks offer money to women organised in these groups without any collateral