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

Why formal sources of credit preferred over the informal sources of ce

1.	Why formal sources of credit preferred over the informal sources of celredit?Give three reasons.
Answer» Subscribe Royal fun unlimited on YouTube In formal sources there is high rate of interest.Due to which people cant pay back.And if they can\'t pay back then there property will be seized.It also requires some security assets which poor people don\'t have.So there they face lots of problems so they prefer informal sources like friends,relative,etc. It doesnt require any think it is based on mutual trust.