Difference between formal and informal sources of credit in five points
Answers
Answered by
3
Formal sectors are those factors which issue credit officially but informal sectors are those which issue credit unofficially..... Formal sector includes banks and cooperatives while informal sector includes landlords money lenders and extras
Answered by
17
hello mate here is u r answer
formal sector
1. comparatively rate of interest charge Is lower
2. collateral is must for getting loan from a formal sector
3. RBI supervises them
4. rich urban households depend on formal sector
5. ex: banks and cooperatives
Informal sector
1. higher rate of interest is charged
2. they are ready to give loans without any collateral too
3. there is no organisation to supervise them
4. poor households depend on informal sector
5. ex:moneylenders, traders, friends, retailers etc
I hope this may help
formal sector
1. comparatively rate of interest charge Is lower
2. collateral is must for getting loan from a formal sector
3. RBI supervises them
4. rich urban households depend on formal sector
5. ex: banks and cooperatives
Informal sector
1. higher rate of interest is charged
2. they are ready to give loans without any collateral too
3. there is no organisation to supervise them
4. poor households depend on informal sector
5. ex:moneylenders, traders, friends, retailers etc
I hope this may help
Similar questions