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Benefits of formal sources of credit |
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Answer» 1. These institutions are regulated by the Reserve Bank Of India. Their rates of interest for loans are controlled. The rates and terms are fixed.2. There is no exploitation by the lenders.3. Everyone can take a loan that includes big businessmen as well as the small cultivators or borrowers.4. The cost of borrowing is usually less. Low interest rate as compared to informal sources of credit |
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