Why is it better to borrow from self - help group rather than a money lender?
Answers
The moneylender lends the money at a high rate of interest that becomes difficult for people to pay up the amount.
Whereas when the help for self-help group is taken by people then the people will have to pay only micro-credit that is easy to return as compared to a huge amount.
Hey there !
It is considered the best to borrow money from Self Help Groups rather than Money Lenders. This is because Money lenders exploit the borrowers by giving money under high interest rates and along with collateral being too strict. Due to this the borrowers are not able to pay the loan and therefore come to the streets for earning their living.
But if we buy money from Self Help Groups, they lend money at low interest rates with small amount of collateral. They are safe and secure and can be repaid under any particular time suggested by the borrower. Due to this the family runs smooth as well as without any troubles.
Hope my answer helped !