Given that a large number of people in our country are poor, does it in any way affect their capacity to borrow?



Q.:- Given that a large number of people in our country are poor, does it in any way affect their capacity to borrow?

 

Answer:-

Poor have low capacity to borrow since they have no collateral to offer. As such, they cannot get any credit from formal sources of credit like banks and co-operatives. They mostly take loans from informal sources of credit like money lenders, friends, relatives, etc.



TutionTeacher: Know free answers of your school textbook. You can find the correct answer of your School textbook question here. This education portal will help in getting the NCERT solutions for your exams. Here you will get the complete question answer and solution of your textbook for your better education. Your can also ask for online study and assignment help from menu. Online test series will also help you how to learn and achive better marks in your school or collage.