Question

Write the differences between formal and informal sources of credit

Answer 1

formal sources of credit are the sources which work in a well way with documentation and security and under govt. supervisation

informal sources does not work in a well way and are not under govt. supervisation

Answer 2

HII

HOPE HERE UR BEST ANSWER GIVEN BY

BRAINLY STAR @SRK6
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FORMAL SOURCE .......
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1. RESERVE BANK OF INDIA SUPERVISE THE FUNCTIONING OF FORMAL SORRY OF CREDIT.

2. iITS GENNERELY CHARGE OF LOWER RATES ON INTEREST.


3. THEIR MAIN AIM IS MOTIVAT SOCIAL WALFARE.

AN EXAMPLE CORPORATIVE. AND BANKS


INFORMAL SOURCE ....
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1. ITS A SMALL UNITS THOSE AREAS WHOM OUTSIDE OF UNDETAKING GOVT CONTROLS.

2. THEIR CHARGED IS VERRY HIGHER RATES ON INTEREST

3. ITS MAIN MOTIV IS PROFIT MAKING.


4 THERE IS NO ORGANISATION WHICH SUPERVISED THE CREDIT ACTIVITIES.

AN EXAMPLE

MONEYLENDERS, TRADERS, EMPLOYEES, RELATIVES AND FRIENDS, ETC.

THANK YOU...