Why are formal sources of credit preferred over the informal source of

1.	Why are formal sources of credit preferred over the informal source of credit? Give three reasons.
Answer» Formal sources of credit preferred over Informal sources of credit because: i.Formal sources have low cost of borrowing ii.Higher Income through cheap borrowing iii.No exploitation and debt trap. iv. Any other relevant point.

Why are formal sources of credit preferred over the informal source of credit? Give three reasons.

Answer»

Formal sources of credit preferred over Informal sources of credit because:

i.Formal sources have low cost of borrowing

ii.Higher Income through cheap borrowing

iii.No exploitation and debt trap.

iv. Any other relevant point.

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Why are formal sources of credit preferred over the informal source of credit? Give three reasons.

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