Question

Mention the weaknesses of formal credit sector.
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Answer 1

Explanation:

People from rural areas cannot use them, as it requires complex documentation. They involve collateral security, and various procedures which are time taking. The villagers are illiterate to understand the procedures. So the villagers prefer informal sources of credit than formal sources.

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Answer 2

Answer:

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Explanation:

People from rural areas cannot use them, as it requires complex documentation. They involve collateral security, and various procedures which are time taking. The villagers are illiterate to understand the procedures. So the villagers prefer informal sources of credit than formal sources.