Question

differentiate between formal sector credit and informal sector credit

Answer 1

credit in formal sector is colletral dependent.
there are rules and regulations for the repayment of lone in formal sector .

informal sector -
there are high interest rate .
there are no rules and regulations for repayment of loans .

Answer 2

Hii friend...........

1). Formal sector- These resources work under the supervision of RBI.
Informal sector- They do not work under any government organisations.
2). Formal sector- The rate of interest is very high.
Informal- The rate of interest is very low.
3). Formal sector- Commercial banks, cooperative banks are main source of formal credit.
Informal- Relative,money lender and land lords are main source of informal credit.

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