Question

Why do poor households rely on informal sector of credit till today?

Answer 1

✌❤HEYA_MATE ❤✌

• ❤Poor household still depends on informal source of credit ❤

• ❤because formal source of credit like bank provide loan only for productive purpose❤

• ❤but moneylenders, landlords provide loan for all things.❤

• ❤Formal source of credit requires a lot of paper work but it is not needed in informal source of credit.❤

✌❤PIYUSH_SHARMA ❤✌

Answer 2

Answer:

Poor households still depend on informal sources of credit because: ... Informal sources of credit such as moneylenders know the borrowers personally and are often willing to give a loan without a collateral. Sometimes, if the borrowers are unable to return the loan, they can get additional loans from moneylenders.

hope it helps

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