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1)bank are not present everywhere
2)collateral is required
3)documentation requirements are higher
4)process is lengthy and time consuming

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hope it helped you if yes plzz mark as best
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theres an option after my answer
because in order to go for formal sector
1 they cannot provide collateral
2 banks do not agree to give loans to these people
3 it is a lengthy process 
4 the require documents which they do not have
5 most of them do not know about formal sources
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