Question

state any two advantages of formal source of credit

Answer 1

#they are supervised by the reserve Bank of India and hence they can't cheat us.

#they can give a large amount of loans which is not possible in informal credit source

Hope it helps...

Answer 2

Formal Source of credit → Sources of credit regulated by Reserved Bank Of India.
Example → Loan from Bank, Cooperatives.

Advantages of Formal Sources of Credit :-
1)Low interest rate on loans.
2)They can not use unfair means to get money back.

Some other advantages:-
1) Regulated by RBI so no tension of illegal money be given as a loan
2)Banks are usually very convinient source for loans