Question

Why do the poor households still depend on informal credit

Answer 1

Poor household are still dependent on informal sources of credit because

1.absence of collateral
2.absence of proper documentation, etc.

Answer 2

the  poor households still depend on informal credit due to :

1)they have not such type of document which requires in formal sector

2)they have not enough money to give monthly interest to bank.

3)they have also not money to go to banks of cities.

4)money from informal sector are easily available.

i hope this answer is

correct.