Question

$Hey guys !!!!!!!!$
please answer it guys
Why is the supervision of the functioning of formal sources of loans necessary?
Answer ASAP : )

Answer 1

formal source of credit is necessary because if collo2 reasons,,,

1.it allow borrower not be much more. exploited in banks

2.borrowers may get less amounts of interests in loan .

3.publuc harashmdnt should be left

4.formal source if credit allow borrower to demand hi gh loans

5 .maintaun proper coordination between moneylenders and takers

6.maintsin proper functioning of banks in providing loans

plzz mark me beaiist

Answer 2

Supervision of the functioning of formal sources is necessary because of the following reasons.

FORMAL SOURCE LOAN MEANS THE BANKS WHICH ARE CONTROLLED BY RBI.

i)To check whether bank is providing loan to all people of society.

ii)To check whether bank is providing loan at low interest rate and not at high so that banks cannot make or run business in profit making way.

iii) To check, how much loan is provided by. banks in day to day life.

Because of these reasons supervision of formal source loans is necessary.