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Byju's Answer
Standard IX
Economics
Self-help Groups
What is the b...
Question

What is the basic difference between a bank and a self-help group?

A
No collateral is required by banks
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B
No collateral is required by SHGs
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C
No collateral is required by both banks and SHGs
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D
Collateral is required by both banks and SHGs
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Solution

The correct option is B No collateral is required by SHGs
Banks advance loan by mortgaging any property as collateral. However, SHGs advance loan without any collateral.

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