what is difference between formal and informal credit?
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Answered by
6
Formal credit have low interest rate.. It requires documentation.. It is controlled by RTI. Eg. Banks
Informal credit have high interest rates.. Dont require documentation.. They can take anyway to get back their money.. They are controlled by individuals.. Eg. Frends and landlords
Informal credit have high interest rates.. Dont require documentation.. They can take anyway to get back their money.. They are controlled by individuals.. Eg. Frends and landlords
hastidDobariya:
sry it's RBI nt RTI
Answered by
14
Formal credit:
• These resources work under the supervision of Reserve Bank of India {RBI}.
• They charge a low rate of interest.
• They follow rules and regulation formed by the government.
Informal credit:
• These do not work under the any government organisation.
• They charge a high rate of interest.
• They do not follow any rules and regulations.
• These resources work under the supervision of Reserve Bank of India {RBI}.
• They charge a low rate of interest.
• They follow rules and regulation formed by the government.
Informal credit:
• These do not work under the any government organisation.
• They charge a high rate of interest.
• They do not follow any rules and regulations.
plz mark 2nd answer as brain list
plz
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