what are the different between formal and informal credit ?
Answers
Answer:
Formal sectors represent all jobs with specific working hours and regular wages and the worker's job is assured. ... Conversely,
informal or unorganized sectors are the ones where the employees or the workers do not have regular working hours and wages and are exempted from taxes.
Explanation:
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Answer:
formal credit:
Banks and cooperative societies constitute the formal sector of credit
reasonable rate of interest
require proper collateral and documentation
supervised by RBI
informal credit:
Landlords, moneylenders, traders, relatives, friends and other sources of credit constitute the informal sector of credit
unreasonable rate of interest
no collateral required
not supervised by any authority
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