why do you think that the formal source of credit provide loans at reasonable intrest rates
Answers
The RBI monitors that the banks actually maintain cash balance and give loans to small cultivators and farmers too. ... They can lend at any interest rate. 2.) Lower rate of interest : The rate of interest if the formal sectors is decided by the RBI.So normally,the interest rates are very low.♥️
Answer:
HERE IS YOUR ANSWER DEAR...
Explanation:
A. Formal sources of credit work according to the norms of Reserve Banks of India.
B. The RBI monitors that the banks give loans not just to the profit-making businessmen and traders. But also to small cultivators, small scale industries, to small borrowers etc.
C. Rates of interest are fixed by RBI according to the instructions given by central government. Indian government is a welfare state.
D. The formal sources to provide loan at low interest rate because people can increase their income and help them in the overall development of the country.