Question

Demerits of formal sector credit

Answer 1

Demerits of formal sector credit are
1. The procedure of getting a loan is time consuming.
2. You can only get the loan if you have collateral.
3. If you dont pay back the loan on time they will capture your collateral.........
Hope helped

Answer 2

Answer:

Explanation:demerits of formal sector are:

1. The procedure of getting a loan is time taking.

2. You can only get the loan if you have collateral.

3. It requires a paperwork.

4. It focused on literate people.

I hope you get your answer........