Question

Why do you think that the share of formal credit is higher for the richer households compared to the poorer households?​

Answer 1

Answer:

this year of the formal sector credit is higher for the richer households because he richer households are in a better position to provide Collateral and other necessary documents which are required by the banks and cooperative richer households have mean to expert pressure on banks and cooperative to sanction loans richer household have greater capacity to repay the loans compared to the poor households.