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प्रश्न
Compare formal sector loans with informal sector of loans regarding interest only.
उत्तर
Formal sector loans can be taken at low rate of interest. On the other hand, informal sector loans are available at high interest rate.
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संबंधित प्रश्न
Explain with an example, how credit plays a vital and positive role for development.
Why do we need to expand formal sources of credit in India?
The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.
|
Occupations |
Reason for needing a Loan |
|
Construction worker |
- |
|
Graduate student who is computer literate |
- |
|
A person employed in government service |
- |
|
Migrant labourer in Delhi |
- |
|
Household maid |
- |
|
Small trader |
- |
|
Autorickshaw driver |
- |
|
A worker whose factory has closed down |
- |
Next, classify the people into two groups based on whom you think might get a bank loan and those who might not. What is the criterion that you have used for classification?
“Credit can play a positive role.” Justify the statement with arguments.
“Credit can play a negative role.” Justify the statement with arguments.
Answer the following question.
Describe the bad effects of informal sources of credit on borrowers.
Explain the importance of formal sector loans in India.
Explain any three reasons for the banks and cooperative societies to increase their lending facilities in rural areas.
Answer the following question.
Give any two examples of the informal sector of credit.
Answer the following question.
Why is cheap and affordable credit important for the country's development? Explain any three reasons.
