Question

why do the poor households still depend on the informed sources of credits like moneylenders?​

Answer 1

Answer:

because the poor house holds didn't getting enough money for their livelihood to do any thing so they don't have any way so they house holds still depends on sources of credits like money lenders .

Answer 2

Answer:

Poor households are still dependent on informal sources of credit due to the following reasons -

• Banks are not present everywhere in rural India. Even when they are present, getting  loan from bank is much more difficult than taking a loan from informal sources.
• Bank loans require proper documents and collateral which poor people in India cannot produce to the bank.
• Informal lenders such as moneylenders know the borrowers personally and hence are often wiling to give a loan without collateral.
• The borrowers can approach the moneylenders even without repaying their previous loans.
• Banks do not sanction any loan to the borrowers if they have not cleared the previous loans.