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प्रश्न
Explain the following term/concept.
Collateral Free Loan.
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उत्तर
- Collateral free loans are SHGs small loans provided to poor individuals for undertaking Self-employment projects.
- Loans are given on the principle of mutual trust and either minimum or no documentation.
- The rate of interest generally charged are higher than the interest charged by banks.
- It saves the poor individuals from the clutches of local money lenders.
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