Question

Most loans from informal lenders
carry a very high interest rate and do
little to increase the income of the
borrowers.

pls anyone tell me the meaning of this line as I am not able to understand this from Google. pls tell​

Answer 1

Answer:

mostly village people or people who fall under the category of poor take loans from money lenders ( moneylenders , friends , relatives comes under the category of informal sector) who charge a very high interest rate on the borrower .....and poor not able to repay the loan due to which he /she fall in the situation of debt trap