Question

1. What are the differences between formal and informal sources of credit?
2. Why should credit at reasonable rates be available for all?
3. Should there be a supervisor, such as the Reserve Bank of India, that looks into the
loan activities of informal lenders? Why would its task be quite difficult?
4. Why do you think that the share of formal sector credit is higher for the richer households
compared to the poorer households?​

Answer 1

Answer:

Why நன்றி மிகவும் அழகாக அதே வணக்கம் கூட்டம் தயவுசெய்து இந்த செய்தியைப் பயன்படுத்த என் இணைக்கப்பட்ட சி.வி.யைக் கண்டுபிடி

Answer 2

1. Formal sources follow the sources of credit that are registered by the govt. and have to follow its rules and regulations whereas in informal sources include those small and scattered units which are largely outside the control of the government.

2. The credit at affordable or reasonable rates is available for all because it helps people to pay their credit without facing any challenges or other difficulties. Another important thing about this facility is that it brings everyone an excellent opportunity to pay the credit with reasonable interest rates.

3. There should be a supervisor for checking the loan activities of Informal lenders. However, its task is quite difficult because informal sector constitutes many people who have different kind of business of their own, besides lending. They are not registered with the government.

4. the share of formal sector credit is higher for the richer households compared to the poorer households.it is because poverty affects poor households capacity to borrow. formal sector credit requires proper documents and collateral as security against loans.

its the answer..