Which of the following is a feature of Self-Help group?

Correct option is A

The group takes care of the debt recovery is a feature of Self-Help groups (SHGs).
· Self-Help groups are voluntary associations of individuals who come together to address their common social and economic needs. These groups are usually formed by people who are poor and have limited access to formal financial institutions such as banks.
· One of the key features of SHGs is that they take care of debt recovery themselves. This means that members of the group collectively take responsibility for repaying loans taken by any member of the group. This provides a sense of security to lenders, who are more likely to lend to these groups than to individual borrowers.
· There is no requirement of collateral in SHGs, and they are not classified as commercial banks. Interest rates charged by SHGs are typically lower than those charged by moneylenders or other informal sources of credit.