Question

Distinguish between formal and informal sector of loan

Answer 1

Answer:

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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Answer 2

Answer:

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Formal sector loan is given by commercial bank whereas informal sector loan is given by money lenders, big merchants, etc. ✔️

Formal sector loans has a low rate of interest where as informal sector loans has a very high rate of interest.✔️

[I hope help ✔️❤️✌️