Whose share is higher in the Formal Sector Credit?

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Middle-class people

Poorer households

Richer households

All of the above

answer is C.

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Detailed Solution

Richer households have more share in the Formal sector credit than the poorer household because the richer people can afford to provide these institutions with collateral and can also fulfil the others' terms of credit.
Poorer people mostly take loans from the informal sector because no collateral is involved. Poor people are landless workers and daily wagers, so collateral isn't conceivable. On the other hand, richer people are mindful and in a better position to provide collateral and documentation required by the banks and cooperatives. Richer households have the means to exert pressure on banks and cooperatives to sanction loans. These households have a greater capacity to repay the loans than the poorer households.

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