CBSE BOARD X, asked by Rudhraa, 1 year ago

Why why is it difficult for the poor household to get the benefits of the formal sources of credit. What values are denied for such households....pls answer fast ...no spam

Answers

Answered by studious721

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Aayushi42: Banks are not available everywhere in rural areas

Pujita4: Yes

Aayushi42: And even if they are available the rural people hava a lot of trouble in filling up the official papers and collecting collateral . The informal sources on the other hand know the borrowers personally and hence don't ask for collateral and such.

Answered by Pujita4

(i) Banks are less in rural areas, whereas the informal sources are present in all villages.
(ii) Getting a loan from banks is much more difficult than taking a loan from informal sources, because banks require proper documents and collateral, which most of the poor people do not possess. This is true for both urban and rural areas.
(iii) Formal sources provide loans only for productive purposes, whereas informal sources provide credit for other purposes also.
(b) From the given statement I have learnt the values of equality and awareness about money.

Hope this helps!!☺

studious721: you copied the answer

Pujita4: Yes☺

Pujita4: Because I have to give her the right answer

Pujita4: with keywords

studious721: hm

Pujita4: :)

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