Self-help group |
Moneylenders |
1. Helps poor traders to take loans at a very low interest rate. Example- loan takers payer only 25 paise for every Rs.100 |
1. Gives loans to others at a very high interest rate. For example- charges Rs.3 for every Rs 100 earned by them. |
2. Easier to do business for poor traders as they are not trapped by any conditions and free to sell their products anywhere | 2. If a farmer takes a loan from a moneylender they are bound by too many conditions like selling their products only to them and accepting whatever price they offer after cutting the interest rate. |