Why there is a need to expand the formal sources of loans in India?
Dear Student
Please find below the solution to your query
1. Around 48% credit in India comes through the informal sector. There are many people who do not have access to the formal credit sources.
2. Such people often fall in the hands of moneylenders who resort to all sorts of methods to suppress the poor.
3. To help such people out of the economic problems, it is necessary to reach the formal sources of credit to them. It will also help in improving the socio - economic conditions in villages and remote areas.
Regards
Please find below the solution to your query
1. Around 48% credit in India comes through the informal sector. There are many people who do not have access to the formal credit sources.
2. Such people often fall in the hands of moneylenders who resort to all sorts of methods to suppress the poor.
3. To help such people out of the economic problems, it is necessary to reach the formal sources of credit to them. It will also help in improving the socio - economic conditions in villages and remote areas.
Regards