Economy, asked by istutiswati05, 9 months ago

Explain formal and informal sector of loans.

Answers

Answered by muskansingh7466
2

Answer:

formal sector loan is given by commercial banks where informal sector loan is given by land lenders big merchant

formal sector loan has low rate of interest where informal sector loan has a very high sector of interest.

Answered by studyrock
2

Answer:

Formal sector= They provide loans in very low interest and for provide long duration to repay.These sectors are controlled by government.

Informal sector= These loans and are provided by moneylenders, zamindar and relatives.In this sector debtor has to pay more interest in short duration.

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