Mention the percentage of loans taken by well off households with few assets from formal sector

CBSE Class 10 CBSE Class 10 Social Science
,
1

Study the graph carefully and answer the questions that follow:

image
image.png693×262 28.5 KB

  1. Mention the percentage of loans taken by well off households with few assets from formal sector.
  2. State the reason for high percentage of formal loams to rich households and high percentage of informal sector loans to poor households.
2
  1. 72% rich households take loans from formed sector.
  2. Richer households are able to provide proper documents collateral required for loans. Absence of collateral poor people cannot get bank loans. On the other hand, money lenders are even ready to offer loans before the repayment of previous loans.