Question

For immediate needs the business institutions get credit from ............., Fill in the blank.

Answer 1

" Indigenious bankers or money lenders                

A moneylender is an individual or group that usually lends relatively small amounts of money at very high rates of interest. They say they charge more than established banks do because their lending tends to be riskier.

For most people with no bank account, bad credit histories, as well as those with too much debt (so banks won’t lend them any more), who do not have relatives or friends who can offer a loan, going to a moneylender is their only option.

Throughout history, moneylenders have earned the bulk of their living by preying on vulnerable people, as well as gamblers and compulsive shoppers who have built up considerable debts.

"

Answer 2

For immediate needs, the business institutions get credit from financial institutions.

Earlier financial institutions were more specialized each offered a  type of institution and dealt with a distinct set of services to a specific set of customers.

However, economic reforms like deregulation, Information technology, and recent economic growth have made the activities more or less similar.

Some examples are:

•    Commercial Banks

•    Mutual Savings Banks

•    Industrial development banks