Question

Why do rural borrowers depend on informal sector of credit?

Answer 1

Dear ur answer

there are a few important reasons for high dependency over informal credit source in the rural areas. These are as follows.

1. Inadequate banking system

2. Cumbersome paper work to procure a loan from rural banks

3. Farmers lack credit worthiness, thus, making it difficult to approach banks for loans

4. Rural people remain unaware of different types of credit options available to them by the rural banks

Answer 2

It may be helpful to uh....