Question

Mention any three points of distinction between formal sector loans and informal sector loans.

Answer 1

- 1) there is lower rate of interest charged by formal sector whereas there is higher rate of interest charged by informal government.
2) formal sources do not exploit borrowers whereas sources exploit borrowers in informal sector.
3)government rules and regulations are followed in formal sector where as there are no rules and regulations in informal sector.

HOPE IT MAY HELP U!!

Answer 2

Heyaaa......

Here's your ans...
_________________________

FORMAL SECTOR LOAN:-

=>It consists of banks.and cooperative,which are supervised by the reserve bank of India.
=>They give loans on low intrest rate.
=>Usually the loans requires extensive documentation and kept some property to keep as collateral or security against any default in payment.

INFORMAL SECTOR LOAN:-

=> It consists of moneylenders,traders, employers, landowners,etc which is not supervised by any organisation.
=> They usually give loans at high interest rate, which means that the cost of the loan is very high to the borrower.
=> Usually the informal sourses do not require extensive documentation for giving the loans.
___________________________
Hope this helps...
Brainliest plzz