Why banks are willing to lend to the Self Help Groups SHG than the poor individual 1 Less prob...........

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Why banks are willing to lend to the Self Help Groups (SHG) than the poor individual

1. Less probability for default

2. Most of the times loan amount is utilized for investment purposes.

3. Improve their status as a whole

Select the correct answer using the code given below

1, 2 and 3

1 and 2

2 and 3

1 only

Explanation:

Class 10 - Book Name- Understanding Economic Development - Pg. No. 51
Explanation

It is the group which is responsible for the repayment of loan. Any case of non repayment of loan by any one member is followed up seriously by other members of the group.
Loan from bank may be utilized for planned purpose
It will improve status of the whole members of SHG.