Question

what is informal source of credit

Answer 1

Traders, moneylenders, landlords, friends relatives and other resources are the informal source of credit.

Hope this will help u :-)

Answer 2

Credit is the worthiness and the ability of a customer to purchase goods and services without money.The worthiness of a consumer or a customer is determined by his or her economic trustworthy to be able to pay back the goods and services he or she have been given.

The formal sources of credit is the money gained through deposits and buying securities by banks.Banks in turn gives loans to clients hence making interests in terms of credits.