Question

Why is the formal credit not available for poor in rural areas? Why is there a need to

expand rural credit?​

Answer 1

Answer:

hope first answer is helpful for you

Answer 2

Answer:

1. formal credit not available for poor in rural area because of the lack of banks in the ruler area
2. poor peoples are not having proper collateral and documents of their property
3. while taking loan from formal credit there are very complex terms as compared to the informal credit
4. poor people want carried for unproductive purpose but formal source give credit for only productive purpose
5. money lender provide loan without any collateral to the poor people