(a) The banks do not lend credit to certain borrowers because of the following reasons:
(i) Banks require proper documents to raise the loans. Some people fail to meet this requirement.
(ii) Banks require collateral to be submitted against the loan amount. Poor people who do not have any collateral to submit, fail to get loan from the bank.
(iii) The borrowers who have not repaid previous loans (bad credit history), the banks might not be willing to lend them further.
OR
(b) (i) SHG encourages the habit of saving among the poor.
(ii) SHG offers collateral-free loans to the sections of people that generally find it hard to get loans from banks.
(iii) SHG performs income and saving generating activities among the poor and marginalised sections of the society.
(iv) SHG is also the platform for rural women to discuss their social issues. (Any three)