Credit from _______________ pushes the borrower into a painful situation.

cooperatives

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SHG

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moneylenders

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banks

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Solution

The correct option is C moneylenders
When a poor person takes a loan he does find it convenient to go to a bank basically because he is uneducated and even does not have a collateral to present in a bank.
Hence he reaches out to the informal sources of credit which are basically the moneylenders. When he goes to moneylenders the rates of interest charged by them is very high but since the borrower is in need he has no other option.

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