Question

what is formal and informal credit​

Answer 1

Answer:

Banks and cooperative societies constitute the formal sector of credit. Landlords, moneylenders, traders, relatives, friends and other sources of credit constitute the informal sector of credit. ... The credit activities of the formal sector are supervised by the Reserve Bank of India.

Answer 2

Answer:

Formal = 1 which is run by a organisation

2. Have fix intrest

3. Eg = Banks

Informal = 1. Run by a individual

2. Have no fix intrest

3. Eg = landlord, tehsildar etc