Question

given that a large number of people in a country or bua does it in anyway affect their capacity to borrow

Answer 1

the poor are not in a position to pay back the loan they take . the lender always see their money recovery. so it does affect the poor peoples capacity to borrow money.

Answer 2

Their capacity to borrow gets affected since they have no parallel collaterals to offer.

EXPLANATION:

The poor have no sources of income and they are unable to take any form of loan or credits from the bank. They are not in a position that they would be able to pay back the loan. They are mostly dependent on private money lenders, friends or other people for borrowing money.

Banks or other formal sectors will not give them the loan. Therefore it affects their capacity to borrow from the banks.