Social Sciences, asked by nakhrewali, 1 year ago

distinguish between formal and informal credit resources

Answers

Answered by Anonymous

Formal sources: (i) They follow those sources of credit, which are registered by the government and have to follow its rules and regulations.

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

.__________________.

INFORMAL SECTOR

``````````````````````````````````````````

•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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