The share of formal sector credit is ____ for the richer households as compared to the poor households in India

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

The share of formal sector credit is higher for the more affluent households than the low-income families in India.
Because wealthier households can better provide collateral and other necessary documentation that banks and cooperatives require, the share of formal sector credit is higher for affluent households. Wealthier families can put pressure on banks and cooperatives to approve loans. Richer households are better able to repay their loans than poorer households. This assertion that more affluent families are better positioned to provide collateral and other supporting documentation when banks want it is supported by evidence. Richer households are also better able to make on-time debt payments. They are equipped to put pressure on cooperatives and banks to approve loans.

Watch 3-min video & get full concept clarity