Question

Which are the two groups of various sources of credit in India? Write any three features of each group

Answer 1

There are two major groups of credit sources in India,these are;
1)Formal Sector.
2)Informal Sector.
-Features of formal sector:
They usually give loan on low interest rate as compared to informal sector.
Their body of supervision is RBI.
It only consist loans from banks and cooperatives.
-Features of Informal Sector:
They usually gives loan on high interest rate.
Mostly,it inludes loans from friends,relatives,moneylenders,landlords.
It is not under the control of RBI.

Answer 2

There are 2 groups; formal and informal
formal:
Gathered from banks and cooperatives
provided on interest rates
supervised by RBI

Informal:
Gathered from moneylenders, relatives and friends
Interest rate varies
not supervised by RBI