Question

why do banks not hesitate to lend money to poor women when organised in SGHs [Self Help Groups] even without collateral?

Answer 1

HI


I. Most of the important decisions regarding the savings and loan activities are taken by the SHG members.

II. The group decides as regards the loans to be granted - the purpose, amount, interest to be charged, repayment schedule, etc.

III. It is the group which is responsible for the repayment of the loan.


Hope it proved to be beneficial.......