The poor households are still dependent on informal sources of credit. Why is it so?

The poor households are still dependent on informal sources of credit. Why is it so?

  1. A

    Lack of banks

  2. B

    Lack of collaterals

  3. C

    Lack of funds

  4. D

    Lack of stable income.

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    Solution:

    Ans: B


    Explanation:

    As we know, bank loans require proper documents and collateral. Absence of collateral is one of the major reasons which prevents the poor from getting bank loans.


     

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