institutional sources : regional rural bank :: _____ : money lenders
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institutional sources : regional rural bank :: _non institutional sources_ : money lenders
Institutional sources of credit such as regional rural banks have definite guidelines on which they lend. They work under the central bank i.e. RBI. They charge fixed interest rate as per the guidelines.
Whereas, non-institutional sources do not work as per any fixed guidelines. They vary the interest rates as per their convenience. They do not fall under the central bank. they work independently.
Therefore, since money lenders lend independently, based on their personal guidelines, they comprise non institutional source of credit.
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