Question

Which is the main source of credit for the poor?Give one reason.

Answer 1

following are the main sources of credit for the poor people:-
1) moneylenders
2) traders
3) landlords
4) Big farmers
5) family relatives and friends..

following are the reasons:-

as poor people do not have repayment capacity, that's why they are unable to get a loan; especially from the banks, ie.( formal sources of credit.)
They managed to get loan from moneylenders, landlords and big farmers, ie.( informal sources of credit).but, in this case, they can't repay the loan and fall in Dept trap. because of the very high rate of interest of the loan....

Answer 2

Hi friend,

Following are the main sources of credit for the poor people:-
1) moneylenders
2) traders
3) landlords
4) Big farmers
5) family relatives and friends..

following are the reasons:-

as poor people do not have repayment capacity, that's why they are unable to get a loan; especially from the banks, ie.( formal sources of credit.)
They managed to get loan from moneylenders, landlords and big farmers, ie.( informal sources of credit).but, in this case, they can't repay the loan and fall in Dept trap. because of the very high rate of interest of the loan...

Hope this helps you... Please mark it as brainliest answer...☺☺☺