Question

Describe the sources of formal and
informal credit in India.​

Answer 1

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-Formal sources of credit are provided by banks and cooperative societies to the borrowers. - Reserve Bank of India (RBI) governs the functioning of formal source of credit. ... - Informal sources of credit are moneylenders, traders, employers, relatives, friends etc.$<marquee scrollamount = 500>ItzHarsh★</p><p><marquee>$

Answer 2

Answer:

Formal credit sources- They are mostly banks and cooperative societies

Cost of borrowing is less.

Interest rate is less and uniform.

It is supervised by RBI

It takes more times for procedure and sanction.

Informal credit sources-They are mostly moneylenders, friends and relatives

Not supervised by any authority

High cost of borrowing

Interest is different for different borrowers

It takes less procedures and sanction.