Question

why do we need to expand formal sources in india? explain

Answer 1

Answer:

$\huge\bold\green{hello!}$

WE NEED TO EXPAND FORMAL SOURCES IN INDIA BECAUSE:-

• CHEAP AND AFFORDABLE CREDIT HELPS IN FASTER DEVELOPMENT OF COUNTY.
• IT HELPS A PERSON TO START HIS OWN BUSINESS.
• MONEYLENDERS AND OTHER SOURCES OF INFORMAL CREDIT CHARGES HIGH RATE OF INTEREST WHICH POSES A PROBLEM TO BORROWER AND IF THE BUSINESS OR CROP FAIL,IT WILL BE IMPOSSIBLE FOR THE BORROWER TO PAY BACK THE MONEY
• BANKS AND COOPERATIVES SHOULD INCREASE THEIR LENDINGS PARTICULARLY IN RURAL AREAS.

HOPE IT HELPS UH...✌✌

Answer 2

Answer:

We need formal sources of credit in order to

♡ reduce the dependence of farmers on informal sources of credit like money lenders.

♡To reduce the higher risk associated with informal sources of credit because of fluctuating terms and conditions.

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