"Most of the poor households are …

CBSE, JEE, NEET, CUET

Question Bank, Mock Tests, Exam Papers

NCERT Solutions, Sample Papers, Notes, Videos

Install Now

"Most of the poor households are still dependent on informal sources of credit". Explain.

Posted by Abhinav ? 6 years, 2 months ago

CBSE > Class 10 > Social Science

1 answers

Yogita Ingle 6 years, 2 months ago

i). Banks are not present everywhere in rural India, where as the informal sources are easily available in all the villages.
ii). Getting a loan from the bank is much more difficult than taking a loan from the informal resources because bank loans require proper documents and collateral. Most of the poor people don’t possess anything to offer as collateral.
iii). Moneylenders provide loan to the poor people without any collateral.
iv). The formal sources provide loan only for productive purposes, whereas the informal sources provide credit for productive and non-productive purposes.
v). The method of business of the formal source is very complex, whereas the informal resources have a very simple way of business.

1Thank You

ANSWER

Test

Related Questions

Define Deccan plateau briefly

Posted by Anisha Grover 3 months, 2 weeks ago

CBSE > Class 10 > Social Science

0 answers

What is the importance of flora and fauna in india

Posted by Vansh Singh 1 year, 4 months ago

CBSE > Class 10 > Social Science

1 answers

What was zollverein formed

Posted by Sakshi Patel 1 week, 3 days ago

CBSE > Class 10 > Social Science

1 answers

What was act of 1919 which was set up by Government of India

Posted by Kapil Dev Saroye 1 year, 4 months ago

CBSE > Class 10 > Social Science

0 answers

How can more employment opportunities be created in the rural areas

Posted by Sai Sravika Godavarthi 3 months, 2 weeks ago

CBSE > Class 10 > Social Science

1 answers

Explain the process of unification of Germany

Posted by Sudhanshu Choudhry 1 year, 4 months ago

CBSE > Class 10 > Social Science

1 answers

What was the purpose of sending the Simon Commission

Posted by Siddhanth Aravind 1 year, 1 month ago

CBSE > Class 10 > Social Science

0 answers

Describe the process of unification Italy

Posted by Armaan Ali 1 year, 4 months ago

CBSE > Class 10 > Social Science

1 answers

Describe the silesian weavers uprising

Posted by Chirag Jindal 1 year, 4 months ago

CBSE > Class 10 > Social Science

0 answers

This content has been hidden. One or more users have flagged this content as inappropriate. Once content is flagged, it is hidden from users and is reviewed by myCBSEguide team against our Community Guidelines. If content is found in violation, the user posting this content will be banned for 30 days from using Homework help section. Suspended users will receive error while adding question or answer. Question comments have also been disabled. Read community guidelines at https://mycbseguide.com/community-guidelines.html

Few rules to keep homework help section safe, clean and informative.

Don't post personal information, mobile numbers and other details.
Don't use this platform for chatting, social networking and making friends. This platform is meant only for asking subject specific and study related questions.
Be nice and polite and avoid rude and abusive language. Avoid inappropriate language and attention, vulgar terms and anything sexually suggestive. Avoid harassment and bullying.
Ask specific question which are clear and concise.

Remember the goal of this website is to share knowledge and learn from each other. Ask questions and help others by answering questions.

Posted by Shristi Pandey 1 month, 2 weeks ago

CBSE > Class 10 > Social Science