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Q: What are the advantages and disadvantages of Precedence of group over the individual?
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Difine Precedence of group over the individual?

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The advantages of group lending over individual lending include: the use of peer pressure as a substitute for collateral, the reduction in transaction costs by gathering as a group, and the utilization of hierarchal structure to learn more about clients. On the flip side, disadvantages include the higher likelihood of group failure in the event of a single default, higher training costs, and a higher financial responsibility for others in a group.


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