Question

How do SHG loans differ from moneylender loans?

Options

• SHG loans require high collateral.

• SHG loans need complex paperwork.

• SHG loans are given without collateral and with group support.

• SHG loans are unavailable to women.

Answer 1

SHG loans are given without collateral and with group support.

Explanation:

SHGs provide collateral-free loans with minimal paperwork and social support, whereas moneylenders require collateral and charge high interest.