Question

why do we need to expand formal sources of credit in india

Answer 1

The formal sector still meets only about half of the total credit needs of the rural people. The remaining credit needs are met from informal sources. Most loans from informal lenders carry a very high interest. The formal sources of credit for lending need to expand their operations particularly in rural areas, so that the dependence, on informal sources of credit reduces.

Answer 2

Hey!!!
we need to expand formal sources of credit in india die to following reasons:
*formal source of credit are less risky.
*they charge less of intrest .
*the RBI supervised the functioning of formal source of loans....
I hope it will be helpful for you. .....
plz mark my answer as brainliest........