Economy, asked by AadithyaMinnu5605, 1 year ago

How has informal loan overcome the problem of informal loans?

Answers

Answered by rishabmodi99

Formal sources of credit are always preferred over informal sources because: A high rate of interest: The informal sources like moneylenders will charge any rate of interest which will lead to huge cost the borrowers to repay and lenders can easily exploit the borrowers.

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