Question

Arjun is seeking the best credit source to open a cyber cafe in his village where people can come and use the computer facilities he is providing. According to you which credit source is best to fulfill this purpose and why

Answer 1

Formal source of credit

Explanation:

1. Banks and cooperative societies provide lenders with structured sources of credit.
2. The Indian Reserve Bank (RBI) is responsible for the operation of the formal credit source. The interest rate and other data from these sources are regularly reviewed by RBI.
3. They follow proper credit terms like collateral, paperwork, interest rate and payment process.
4. They have low-cost and flexible loans with common lending terms

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Difference between formal and informal sources of credit in tabular ...

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Answer 2

Answer:

formal source credit is a best source