Question

Suggest the sources of credit under formal and informal sources of credit.​

Answer 1

Answer:

source of credited is the answer

Answer 2

Answer:

Answer:

Formal source of credit:

(a) Loans that are given by banks and co-operative institutions are called Formal sector of credit.

(b) The functioning of these banks and co-operative institutions are supervised by Reserve Bank of India- RBI.

(c) These institutions are required to report to the RBI the rate of interest, amount lending, etc.

(d) Borrower is required to submit collaterals and documents.

Informal source of credit:

(a) Loans that are given by money lenders, friends and relatives are called Informal source of credit.

(b) They are not supervised by Reserve Bank of India - RBI.

(c) They can lend money at any interest rate and use any means to get back their money.

(d) Borrower is not required to submit collaterals and documents.

Explanation: