Question

Which sector out of formal and informal finance sector charges higher interest rate on loans?​

Answer 1

Answer:

informal financial charges higher interest on loan

Answer 2

Answer:

Formal financial institutions ignore small savings and credit facilities for small farmers, lower-income households, and small- farmers in rural areas, and for lower- scale enterprises in favour of a larger-scale, income households and small-scale well-off, and literate clientele which can enterprises in urban areas.

INFORMAL FINANCIAL SECTORS

 The informal financial sector provides savings and credit facilities for small scale farmers in rural areas, and the lower-income households and small-scale enterprises in urban areas. ...

 The informal sector mobilises rural savings and small savings from low income urban households.