Question

What are the major reasons that prevent the poor from getting bank loans

Answer 1

1)Banks are not present everywhere in rural india.
2)Even if they are present getting loans from banks is difficult than gettinh from moneylenders.
3)Banks require documentation requirement and collateral which is absent among poors.
4)Moneylenders know the borrowers personally and are willing to give loans without collateral.
5)Borrowers can also ask moneylenders for loan even before repaying the earlier loans.
6)Many do not have proper knowledge about loan activities of banks.

Hope it hepls.

Answer 2

heya ..!!

The reasons that r forcing rural households n poor people to stop them of taking credits from banks are:


✒They are not literate enough to fulfil the qualification n conditions of bank for providing loans.

✒They r not aware of the advantages that they will get from a formal credit.

✒Usually they take loans from informal sectors like their family
relatives....frnds...moneylenders.. etc..as they know them personally.

✒There r not enough banks established in rural areas so that the people there can also take the advantage of formal credit..




hope this will help u..
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