Question

What are the advantages and disadvantages of formal and informal sector?

Answer 1

Here is ur answer ...only advantages i sent uhh.... Let's see..
Hope it may help uhh.

Answer 2

• Advantages of formal loans

1. They charge low rate of interest.

2. They do not harass the borrowers and do not use unfair means to get their payment.

Disadvantages

1. They are not present everywhere so onlyrich people can have access to it.

2. Even where they are present , poor do not have collateral as they require.

• Advantages of informal loans

1. They don not need collateral and give loans to the poor without any problem and documents.

Disadvantages

1. They charge high rate of interest and often harass the poor borrowers and uses unfair means.