Answer :
Final answer:
Self-help groups provide access to loans without traditional collateral requirements by assessing the borrower's character and trustworthiness instead.
Explanation:
Self-help groups can help borrowers overcome the problem of lack of collateral by providing them with access to loans without requiring traditional forms of collateral. These groups are usually formed by individuals who share a common goal or interest, and they pool their resources to provide financial support to each other. In the case of borrowers who lack collateral, self-help groups can assess the borrower's character and trustworthiness instead of relying on physical assets as collateral. This allows borrowers to access the funds they need without the traditional requirement of collateral.