3) Discribe formal & informal sources of
credits
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Answer:
The main motive of formal sources is social welfare whereas the main motive of informal sources is profit-making. Banks and cooperatives are the example of formal sources and moneylenders, traders, employees, friends and relatives etc are the example of informal sources.
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Answer:
formal sources of credit --
when the loan given in bank and cooperative sector
this is conducted by RBI
in this sector intrest rate is lower
informal sources of credit --
when the loan given by money lender friends relatives this is. called informal sector of credit
this is not conducted by RBI
in this sector intrest rate is higher
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