What are the differences between formal and informal sources of credit

1.	What are the differences between formal and informal sources of credit?
Answer» The\xa0formal source of credit\xa0provide\xa0loans\xa0comparatively at the lower rate and collateral is required to obtain loan. It is supervised by RBI. It includes banks and cooperatives. Informal sources. Information from\xa0informal sources\xa0can include conversations with colleagues at lunch or from friends or other associates external to your company. The\xa0formal sector\xa0consists of the businesses, enterprises and economic activities that are monitored, protected and taxed by the government, whereas the\xa0informal sector\xa0is comprised of the workers and enterprises that are not under government regulation.\xa0

Discussion