Question

why do informal lender give lone to people not having any collateral

Answer 1

basically, informal sources of credit are totally based on trust therefore the loan is easily provided by them.also lenders easily provide money,in case the loan is not payed back they can increase the rate of interest according to their convenience timely,where as in formal sources of credit,distinct rate of interst is charged.

Answer 2

Answer:

good question

pls make me as brainliest