who are informal lenders?
Answers
Answered by
14
Answer:
Informal Finance - Mapping Global Savings and LendingPractices. ... Often referred to as “loan sharks”, informalmoneylenders are frequently criticized for lending money at exorbitantly high interest rates and preying on poor people in dire situations.
Answered by
2
Informal lenders:
- Informal lenders are ones who are not regulated by the central bank such as RBI. Informal lenders give a loan at a higher rate.
- The local moneylenders, relatives, friends and finance companies that grant a loan to the people in need at higher interest rates are informal lenders.
- They do not follow the rules framed by the RBI. They are not supervised by RBI so they amount to fraud or malicious activities.
- They do not demand collateral so sometimes people take loans from them.
Learn more about lenders:
Write two ways in which money lenders exploited the peasants.
https://brainly.in/question/11138157
Why do lenders ask for collateral while lending?
https://brainly.in/question/871755
Similar questions