differentiate between formal sector loan and informal sector loan
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Hey...
• Formal sector loan is given by commercial bank whereas informal sector loan is given by money lenders, big merchants, etc.
• Formal sector loan required collateral where as informal sector loans does not require collateral.
• Formal sector loans has a low rate of interest where as informal sector loans has a very high rate of interest.
Hope this would help you.
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@ Saadya
Expert
Brainly
• Formal sector loan is given by commercial bank whereas informal sector loan is given by money lenders, big merchants, etc.
• Formal sector loan required collateral where as informal sector loans does not require collateral.
• Formal sector loans has a low rate of interest where as informal sector loans has a very high rate of interest.
Hope this would help you.
Mark it as brainliest if you like.
@ Saadya
Expert
Brainly
Answered by
733
Formal sector loan:
They are supervised by the Reserve bank of India.
These consists of loans from banks and cooperatives.
It provides loans at fixed rate and terms.
Informal sector loans:
They are not supervised by RBI.
They get loans from moneylenders, relatives, friends....
It does not provide loan at fixed terms.
It gives loans only for making profits.
They are supervised by the Reserve bank of India.
These consists of loans from banks and cooperatives.
It provides loans at fixed rate and terms.
Informal sector loans:
They are not supervised by RBI.
They get loans from moneylenders, relatives, friends....
It does not provide loan at fixed terms.
It gives loans only for making profits.
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