Economy, asked by Mariyamaaluzzz, 1 year ago

diffrentiate between the term of credit offered in formal and informal sectors of credit

Answers

Answered by Lipshasahu

formal credit-These are those source of organisation 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 organisations 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.

Answered by iraza

Answer:

FORMAL SECTOR

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•We can get formal sector credit loans from Bank, LIC etc

•They are under the control of RBI

•If we don't pay the loan back the take legal action

•They give loan in reasonable interest

•Collateral is necessary

•This take more time for process

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INFORMAL SECTOR

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•We can get informal sector credit loans from Money lender, Trader, relatives etc

•They are not under the control of RBI

•If we don't pay back the loan they may take illegal action

•They give loan in high interest

•Collateral is not necessary ,it depends on the people's will and wish

•They actually don't take more time for the process

.___________________.

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