Economy, asked by aadarshkumar19738, 8 months ago

Why do formal sector do not meet the need of poor

Answers

Answered by alkamavath
1
• Banks and Cooperatives are not present in every rural area
• even if they are present getting a loan is hard because of documentation requirements and collateral security
• absence of collateral is the major reason why poor cannot obtain loans
Answered by avoz
0

Answer:

  • Fomal sector do not meet the need of the poor people because mostly poor people do not have education and thus cannot maintain thier documents / credentials required in formal sector.
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