why are services condition of formal sector loans better than informal sector? explain​
Answers
Answered by
109
ANSWER: Formal sector
1. banks provide loans at low interest rate than informal sector
2.banks needs collateral or assets as their guarntee for them
3.banks never harrass the poor whereas informal sector do
3.banks provide loans should be easier.
4.banks provide facility of providing loans so that dependence on informal sources of credit reduces
5.orangised banking sector is systematic in its functioning.
6.more documentation is required than informal sector requires less documentation
l hope its help you well
______________sheryln21_______________
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1. banks provide loans at low interest rate than informal sector
2.banks needs collateral or assets as their guarntee for them
3.banks never harrass the poor whereas informal sector do
3.banks provide loans should be easier.
4.banks provide facility of providing loans so that dependence on informal sources of credit reduces
5.orangised banking sector is systematic in its functioning.
6.more documentation is required than informal sector requires less documentation
l hope its help you well
______________sheryln21_______________
plz.mark as brainliest
Answered by
21
Answer:
Formal sector loans are lended by the government officials legally, but informal sector loans are lended by the private players.
Explanation:
Formal sector loaning agency comprises the Banking sector, Micro finance institution, self help groups and so on. They are legally registered and lends at the reasonable rate of interest. Their loan amount collection is in formal way and exploitation of the deprived people is relatively less than the informal sector. Informal sector loaning process is vulnerable to the poor people, they assigned the high rate of interest, if repay is delayed their attitude over poor people is more cunning.
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