Question

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

Answer 1

hope it will help you

Answer 2

Answer:

Poor people lend the amount from greedy money lenders at high rate of interest and poor become much poorer.

Explanation:

The poor household peoples are notably illiterate, so they lack in banking procedures, proper documentation and unaware about micro finance agencies. They are mostly landless labourers and daily wagers, so collateral is not possible for these penniless people. Richer household peoples are significantly literate and they much aware about documentation and collateral procedures.