Question

What are the two different credit situations?

Answer 1

A large number of transactions in our day-to-day activities involve credit in some form or the other. Credit (loan) refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.



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Answer 2

Answer:

what are two different credit situations

Formal Sector- It includes banks and cooperatives that extend loans to households for entrepreneurship and other personal needs. The rates of interest charged by them are low.

Informal Sector- It includes moneylenders, traders, employers, relatives, and friends