Social Sciences, asked by zikrashanna9373, 1 year ago

Why are formal source of credit preferred over the informal source of credut? Give reason?

Answers

Answered by kavinsenthilkumar
1

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Answered by Nyaberiduke
3

when it comes to credit then one needs to be careful because it has been used as trap by many financiers and people who engage in the business of money lending but their credibility is of question .

formal credit sources have been in existence such as banks and many more . they have a procedural way of taking this loan .they provide favorable terms of lending hence most prefered .they also provide consultation services as they give financial advice to their customers .they have a binding agreement form that is conducive with a very  flexible payment plans that do not impose pressure on their customers .just in case of late payment ,they have a formal way of communication

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