Question

What are Formal and Informal sectors??

Answer 1

heya!!!!!
here is ur answer___________

◆formal and Informal Sectors of Credit in India. People can borrow money from different sources such as banks, cooperatives, money lenders, relatives and friends etc. ... The loan obtained from money lenders, relatives and friends, etc. constitutes the 'informal sector' of credit.

●informal sector means self help grp like our relatives,frnd and colleagues..
loan provided is of very high interest..

● formal sector includes bank, offices...etc

they provides loans at very low interest...

hope this helps!!!!

Answer 2

formal sectors are the banks 
* they provide credit at very low interest

informal sectors like self help groups, friends
* they provide loan at high interest
* we could be in problem if they have any criminal background.