Question

What are the Formal sources of loans in India?

Answer 1

Hello Buddy..

Among the formal sector are loans from banks and cooperatives. 

Hope it helps you..
Have a great day ahead..

Answer 2

A.     Loans received from commercial bank and co-operative institutions constitute “formal sector” of credit.

B.     Reserve bank of India – RBI supervises the functioning of these banks and co-operative institutes.

C.     Borrowers are required to offer collateral to avail loans. This is possible with urban class and not with the poor sector of our society.

D.     It also requires proper documentation.

E.     The “Self Help Group” – SHG is another source of formal loan given to rural poor, especially women.