Diffrentiate between formal sector credit and informal sector credit.
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Answers
Answer:
Formal Sector Loans: Include loans from banks and cooperatives. ... (ii) Formal sector strictly follows the terms of credit, which includes interest rate, collateral, documentation and the mode of repayment. Informal Sector Loans : Include loans from moneylenders, traders, employers, relatives, friends, etc
Explanation:
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Answer:
formal credit-These are those source of organization which are followed by the govt & follow certain rule & regulations,these have collateral security,lower internet in loans ex -In co- operative banks,society & etc.
Informal credit-These These comprises those organizations which are non government sector, higher Interest on loans & no security is provided to obtain loan ex- Land loards,money lenders,non-institutional agencies & etc.
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