Answer:
Debt-trap
is a situation in which a person after taking a loan is not able to pay back
the loan.
It is more common in rural areas because
(i) A borrower repays a loan by selling
the agricultural produce, Which sometimes may not be enough to repay the loan.
(ii) Rural borrowers normally depend on informal sources of credit who
charge a high rate of interest. This repayment of larger amounts may sometimes
be larger than their income.
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