What was the difference between the rich households and poor households in getting loans from
the formal and informal sectors in 2003 ?
Answers
Answer:
85% of the poor households take loans from the informal sector while only 10% of the rich households take loans from the informal sector.
2. The share of the formal sector credit is higher for the richer households because rich people have properties to give as collateral to banks and get loans at a low rate of interest which poor people are deprived of.
3. In the following ways dependence can be reduced on informal sources of taking credit.
(a) Encouraging people to make self-help groups.
(b) Encourraging people for savings hich can be used next year for growing and harvesting crops.
(c) Providing loand at low rates and enrolling in various schemes launched by government.
Explanation:
Poor households are deprived of the formal sector of loans because they lack proper documents and collateral such as house, livestock or any other property as a guarantee to obtain a bank loan.
Answer:
answer ??+*72;+$(1)}=€=€[€{%{¢✓=¢[¢[£}¶¢✓¥✓•✓[€{€[€