Social Sciences, asked by sammykishan135, 1 year ago

formal and informal financial institution for Savings and Credit

Answers

Answered by merababu
22
in formal institution,such as cooperatives and banks , in this we can deposits our savings and in this institution, when we deposits our money then bank will give the interest
and
in credit which were taken in informal institution, the bank will charge a low amount if interest

in informal institution ,such as take loan from relatives,moneylenders ,etc..
these charge a high rate if interest
if we promise to give our land and other resources while we not able to pay credit then money lenders and relatives , etc has been able to receive the product that finally we recognize as collateral
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