The main source of credit for rich households is the Formal sector.

Formal Credit:
- The formal sector includes banks, cooperative societies, and other financial institutions that are regulated by the government.
- Banks provide various types of loans such as personal loans, home loans, car loans, and business loans to individuals and households.
- Cooperative societies also offer credit facilities to their members for various purposes.
- The formal sector has a well-defined structure and operates within the legal framework of the country.
- The interest rates charged by formal sector institutions are generally lower compared to the informal sector.
- Formal credit is secured and requires collateral, which provides a sense of security to the lenders.
- Rich households have better access to formal credit due to their financial stability, creditworthiness, and ability to provide collateral.

Informal Credit:
- The informal sector includes moneylenders, pawnbrokers, friends, and relatives who provide credit outside the regulated financial system.
- Informal credit is often availed by low-income households who do not have access to formal credit due to lack of collateral, credit history, or low income.
- The interest rates charged by informal lenders are usually much higher compared to formal institutions.
- Informal credit is often unsecured and does not require collateral, but it may involve personal relationships and trust.
- Rich households generally do not rely on informal credit as they have better access to formal credit and can fulfill their financial needs through banks and other financial institutions.

Both Formal and Informal Credit:
- While the formal sector is the main source of credit for rich households, it is possible for them to also avail informal credit if needed.
- In some cases, rich households may opt for informal credit for short-term or urgent financial needs where the formal sector may not be readily available or may involve lengthy procedures.
- However, the primary and preferred source of credit for rich households is the formal sector due to its advantages such as lower interest rates, collateral requirements, and the overall convenience and credibility it offers.

In conclusion, the formal sector is the main source of credit for rich households. They have better access to formal credit due to their financial stability, creditworthiness, and ability to provide collateral. Informal credit is generally availed by low-income households who lack access to formal credit.