Question

difference between formal lenders and informal lenders​

Answer 1

Answer:

The distinctions:

(i)Formal sector loans are such loans which are taken either from the banks or the co-operatives. While informal sector loans are those which are taken from moneylenders, traders, employers, relative and friends.

Answer 2

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Formal sector loan is given by commercial bank whereas informal sector loan is given by money lenders, big merchants, etc. ... Formal sector loans has a low rate of interest where as informal sector loans has a very high rate of interest.