Question

Which is a major reason that prevents the poor from getting loans from banks?

Answer 1

• The major reason for the inability of the poor to access a loan from the bank is the absence of sufficient collateral to secure loan. Apart from that, the following reasons may also play a role.
• There may be no bank branches in their vicinity
• They may not have enough balance for a savings account
• They may be ill-informed about bank procedures
• They may not have regular income, making it difficult for the banks to extend loans to them.

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