Question

What are formal sector of loan ? give example

Answer 1

Answer:

Formal Sector Loans: Include loans from banks and cooperatives. Features of formal sector. Loans are : ... Informal Sector Loans : Include loans from moneylenders, traders, employers, relatives, friends, etc.

Formal Sector Loans: Include loans from banks and cooperatives. Features of formal sector. Loans are : (i) Formal sectors provide cheap and affordable loans and their rate of interest are monitored by Reserve Bank of India.

Answer 2

Landlords, moneylenders, traders, relatives, friends and other sources of credit constitute the informal sector of credit. The formal sector provides only marginally more credit than the informal sector currently. The credit activities of the formal sector are supervisedby the Reserve Bank of India.