Question

What is formal source of credit? Mention any two features of it

Answer 1

$hey \: dear \: here \: is \: your \: answer$

⭐⭐<==================>⭐⭐


✯FORMAL SOURCE OF CREDIT: it includes banks and cooperatives.


►FEATURES :

➊. the Reserve Bank of India supervises the functioning of formal sources of loans.


➋. they provide loans at a fixed rate and terms.


➌. they give loans not just to profit making business and traders but also to small cultivators, small scale industries too small borrowers, etc.



☺
$hope \: this \: helps \: u \: dear$
✌✌✌.

Answer 2

Formal source of credit : means that the loans will be given by rural banks, commercial bank, cooperative societies etc is called the formal source of credit

Features of formal source of credit are

1 They collect low rate of interest

2 The Reserve Bank of India supervisor functioning of formal source of loan

3 They follow some well defined rules and procedures