Question

Read the information given below and select the correct option - Mohan is an agricultural labourer. There are several months in a year when he has no work and needs credit to meet his daily expenses. He depends upon his employer, the landowner for credit who charges an interest rate of 5 per cent per month. Mohan repays the money by working physically for the landowner on his farmland.


Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of the following statements about this sector is correct – 

There are govt. bodies to supervise informal sector 

Money lenders ask for a reasonable rate of interest 

Cost of informal loans to the borrower is quite high 

Money lenders use fair means to get their money back​

Answer 1

$\huge\red{answer}$⇒Cost of informal loans to the borrower is quite high  

$\huge\orange{@alurringbabe}$