Question

"poor household still depend on informal sources of credit ".support the statement

Answer 1

poor households still depend on informal sources of credit because poor people cannot take loan money from the formal sector because they do not have collateral which they cannot give to the bank for guarantee of repayment so the poor people depend on informal sector of credit such as friends landlords etc

Answer 2

Poor households still depend on informal sources of credit becoz:-
1) Formal loans need a lot of office work but poor peasants aren't much educated so they neglect formal loans.
2) Banks r not available in small villages where poor people live.