Question

19. Why do people from poor households take loans from
informal sources?
(a) The informal lenders charge low interest rate as
compared to formal sources.
(b) The informal lenders do not- exploit the poor as
they are near to them.
(c) Getting loan from informal lenders is much easier
than taking loan from bank.
(d) There is no time limit for repayment of loan taken
from informal sources.​

Answer 1

Answer:

(c)Getting loan from informal lenders is much easier than taking from bank.

Explanation:

Because informal lenders dont ask for any documents whereas banks ask.