Question

why do you think that the share of formal sector credit is higher for the richer households compared to the poor households

Answer 1

Hey mate...

Poor households are not awared of the formal sources of credits..they also lack collateral and proper documentation...so they prefer informal sources of credit...

HOPE IT HELPS☺

Answer 2

there are many factors responsible for this

collateral
rich have enough collateral to avail for loan but poor lack in it

documentation
rich have required documents like IT returns etc, but a poor dosentbut have any of this

absence of bank in rural area