Question

what are formal sources of credit and why do we need to expand the formal sources of credit in india

Answer 1

Answer:

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Explanation:

We need formal sources of credit in order to reduce the dependence of farmers on informal sources of credit like money lenders. To reduce the higher risk associated with informal sources of credit because of fluctuating terms and conditions. To avail cheaper credit to farmers in rural areas.

Answer 2

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Fσrmαl sσurcєs σf crєdít αrє thє gσvєrnmєnt αuthσrísєd σrgαnísαtíσns thαt αrє єlígíвlє tσ lєnd mσnєч tσ pєσplє. ít ís ímpσrtαnt tσ єхpαnd fσrmαl sσurcєs σf crєdít ín índíα вєcαusє thє ínfσrmαl sσurcєs αrє nσt rєgístєrєd αnd lєnd mσnєч tσ pєσplє αt vєrч hígh-íntєrєst rαtєs whích ís unfαír αnd must nσt вє prαctísєd. íf fσrmαl sσurcєs σf crєdít αrє íncrєαsєd, pєσplє wíll вє αвlє tσ вσrrσw mσnєч αt lєssєr íntєrєst rαtєs αnd wíll nσt вє líαвlє tσ dσ αnч єхtrα wσrk fσr thє вσrrσwєr. єspєcíαllч ín índíα, íf fσrmαl sσurcєs σf crєdít αrє íncrєαsєd, pєσplє wíll вє αвlє tσ tαkє lσαns αnd usє thєm fσr thє dєvєlσpmєnt σf thє cσuntrч.