Question

What are the differences between formal and informal sources of credit​

Answer 1

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Formal sources usually charges lower rates of interest whereas in informal sources they charge much higher rates of interest. The main motive of formal sources is social welfare whereas the main motive of informal sources is profit-making.

Answer 2

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Formal sources usually charges lower rates of interest whereas in informal sources they charge much higher rates of interest. The main motive of formal sources is social welfare whereas the main motive of informal sources is profit-making.