Question

Most of the people depend upon loans from informal sector because​

Answer 1

• $\huge\red{\mid{\fbox{\tt(answer)}\mid}}$
• The rural borrowers depend on the informal sector for credit because : (i) Absense of collateral and documentation with rural borrowers. (ii) Flexible loans in term of timelines, interest rates, procedural requirements etc. ... Need to aware them regarding high rate of interest and debt traps made by such moneylenders.