Question

suppose you arr a small farmer who needs some money. you have both formal and informal sector of credit. which one of the will you choose and why?

Answer 1

Well I will definitely go for formal one because it's more promising and secure .
For low income households ,Credit sure is an factor or the lack of access to adequate bank Credit.
Informal Credit Lenders work outside the perview of regulations imposed in the Formal sector.
For little amounts, a farmer can go for informal Credit but in case of Large amount , banks are a true choice

Answer 2

Formal sector of credit will be good choice