what are formal and informal sources of credit?why need to expand the formal source of credit?
Answers
Answered by
4
formal source are those who works under the supervision of RBI. the sources of credit are cooperative Bank commercial bank
informal source are those who do not work under any government organisation. the credit in the informal source are relatives money lenders traders etc
this need to expand formal sources of credit because they follow rules and regulations formed by the government.
the chart below rate of interest. there is no chance of debit trap .
Answered by
2
Answer:
The two major sources of formalsector credit in India are — commercial banks and cooperative societies. ... (a)Informal sources of credit exploit the poors resulting in putting them into debt-traps. (b) Formal sources of credit are cheaper and thus they help in country's development.
Similar questions