What are the proportion of farmers who take loan from informal sector why do they prefer informal source of credit

 About 48% of the farmers taken loan from informal sources .The informal sources of loan are:

Informal sources are :-
Land lords , and moneylenders.

Farmers prefers the informal sources more because they provide loan more easily than formal sectors.The loan procedure in formal sorces is cumbersome and time consuming.In formal sources they also need security like collateral etc which are not needed in informal sources of credit.

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Plzzzzzz answer this as it is urgent 🙏
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Most farmers nd people take loans from informal source of credit bcoz they are ready to give loans without any collateral . Nd even if the previous loan is not paid then also they give loans to them.
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