For some households, credit decisions
are difficult to attain without an agency helping them along the way. Many poor credit decisions are a result of a lack of communication between both the household and its preferred financial agency, Firstpost reports. An organization in India, Pudhuaaru KGFS, is taking an initiative with this notion in mind. By educating financial advisors on the specific financial obligations of households, they can more efficiently provide clients with realistic guidelines and routes for financial stability. This practice is applicable among wealthier households in India, but becomes more difficult to apply in poorer settings, the news source states. Of the more than 150,000 households surveyed by Consumer Pyramids, approximately half of them have an annual income of less than $2,500. Communities in poor urban areas tend to have ethnic differences amongst each other, creating an unstable market. Rural India, which often has homogenous communities, are more reliable because the ethnic ties create a bond among the people and those households are more likely to maintain, according to the news source.