Question

difference between formal and informal source of credit?? Don't spam..​

Answer 1

Answer:

Formal sources follow the sources of credit that are registered by the govt. and have to follow its rules and regulations whereas in informal sources include those small and scattered units which are largely outside the control of the government.

Explanation:

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Answer 2

Answer:

Formal Sources of Credit

1. Formal sources of credit includes loans from banks and cooperatives
2. The RBI supervises the functioning of formal sources of credit
3. Formal sources of credit charges low rate of interest
4. Collateral is required
5. Social welfare is the main aim of formal sources of credit

Explanation:

Informal Sources of Credit

1. Informal sources of credit involves loans from money lenders,traders,employers etc
2. There is no organization which supervises the informal sources of credit
3. Informal sources of credit charges a high rate of interest
4. Collateral is not required
5. Profit motive is the main aim of Informal sources of credit

Hope it helps you friend