Question

WHY DO POOR HOUSE HOLDS RELY ON INFORMAL SOURCE OF CREDIT?

Answer 1

Hey mate, here's your answer✨✨♥️♥️

The poor households have credit from informal source of credit because bank doesn't allow the poor people to give loan or credit due to which they have to take credit.and they don't have complete appointment letters and don't have valid papers to take loan.

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Answer 2

For the large number of poor people in our country, it becomes difficult to avail loans from formal sources of credit, such as the Bank, etc. due to the lack of proper Collateral, documentation, etc. As a result, they are bound to take the help of informal sources of credit, who charge high interest rates, even if they usually do not require Collateral and documentation...

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