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Distinguished between formal source of credit and informal source of credit. |
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Answer» And last point, RBI supervises formal sector whereas in informal sector, there is no organization to supervise them.? Collateral , documentation and many formalities is must for getting a loan from a formal sector. Whereas in informal sector, they are ready to give loans without any collateral, documents etc. In formal source of credit, comparatively rate of interest charge is lower and in informal source of credit, higher rate of interest is charged. Moneylender*? Lender*** Its money lander***.....sorry Bank is formal source and local money is informal...... |
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