Question

what do you know about formed and informel sources of cradit? why do we need to expand formal source of credition india

Answer 1

On the other hand, there is no organisation which supervises the credit activities of lenders in the informal sector.They can lend at any interest rate. ... We need to expand the formal sources of credit because of the following reasons;) (1) Formal sources of credit are less risky and they charge less rate of interest .

Answer 2

heya..

here is your answer..

FORMAL SOURCES OF CREDIT :

1. RBI SUPERVISES THE FUNCTIONING OF FORMAL SOURCES OF CREDIT.

• THEY CHARGE LOWER RATES OF INTEREST.
• THERE MAIN MOTIVE IS  SOCIAL WELFARE.
• INFORMAL SOURCES OF CREDIT:

1. THERE IS NO ORGANISATION WHICH SUPERVISES THE CREDIT ACTIVITES OF THESE SOURCE.
2. THEY CHARGE HIGHER RATES OF INTEREST.
3. THERE MAIN MOTIVE IS PROFIT MAKING.

IT MAY HELP YOU..