Question

1) what is formal and informal sector credit ?
2) how much percentage of rural credit fulfill from formal sector ?​

Answer 1

HeRe Is Your Ans ⤵

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➡Loans that are given by banks and co-operative institutions are called Formal sector of credit

Loans that are given by banks and co-operative institutions are called Formal sector of credit➡Loans that are given by money lenders, friends and relatives are called Informal source of credit

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Answer 2

1.The credit activities of the formal sector are supervised by the Reserve Bank of India. The RBI gives credit to all at low interest rates. In the informal sector there is no supervisory body. ... A high rate of interest means that a borrower spends more money to repay the loan and is left with less money for himself.

2.