Question

what is the difference between formal sector loan and informal sector loan defined​

Answer 1

Formal sector loan is given by commercial bank whereas informal sector loan is given by money lenders, big merchants, etc. ... Formal sector loans has a low rate of interest where as informal sector loans has a very high rate of interest.

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Answer 2

Answer:

This is your answer dear

Hope it helps you

Explanation:

Formal sector loans are such loans which are taken either from the banks or the co-operatives. While informal sector loans are those which are taken from moneylenders, traders, employers, relative and friends.