Question

Despite development in every walk of life poor farmer still depend for his/her credit on informal sector ?​

Answer 1

Explanation:

there are some reason that poor farmer still depends on informal source of credit

1. they can get credit easily by informal sector as compared to formal sector

2. there is no requirement of collateral

in informal source of credit

3. still there is limited amount of banks in rural areas so they have to depend on informal secter

Answer 2

yes they are dependent on informal sources of credit ...the reason behind this is..in formal source ..banks asked for collateral but the poor people don't have collateral to give...so they not take loans from. the bank..and search for informal sources of credit.....