(D) Members of Self-Help Group (SHG)
Most important decisions regarding savings and loan activities — purpose, amount, interest rate, repayment schedule — are taken by the group members themselves.
The passage explicitly states: "Most of the important decisions regarding the savings and loan activities are taken by the group members." Examiners expect you to identify option (D) directly. Banks only sanction loans to the group; NGOs may help organise SHGs, but decision-making rests with the members.