Question

Mention the reasons why rural poor people still generally take loans form informal credit sources that charge a very high rate of interest?

Answer 1

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Poor people in rural areas are still dependent on informal credit sources such as the moneylenders who charge an exorbitant rate of interest on the given loans. It is because banks are not present in far-off villages in rural India. Further, taking a loan from a bank is much difficult due to extensive paper work.

Answer 2

Answer:

there is one word answer for it : illiteracy

people don't know about the government schemes and also they are afraid of using the modern technologies.

sometimes the money lenders who give them money, themselves don't let them know about these schemes of government