Question

difference between formal and informal sources of loans ???
please answer???

Answer 1

rate of interest in formal source of loan is less than informal source .

formal source can work under government but informal can't.

formal source can govern by RBI but informal can't


in formal source bank , and some organization come but in informal relations , land loader come

Answer 2

formal loans are the loans taken from banks and informal loans are taken from a informal source like friends, relatives,etc