Which of the following groups in urban India depend on informal sources to meet their credit needs?
In urban India, poor households and those with few assets depend on informal credit sources like moneylenders and traders, as they lack access to banks and collateral security for formal loans. Correct Option: (C) Both poor households and households with few assets.
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Poor and low-asset households in urban areas rely heavily on informal lenders such as shopkeepers or employers for loans. They cannot access bank loans due to lack of collateral, documentation, and awareness. Although informal credit provides quick cash, it often involves high interest rates, trapping borrowers in long-term financial dependency. Correct Option: (C)