Advertisements
Advertisements
Question
Compare formal sector loans with informal sector of loans regarding interest only.
Solution
Formal sector loans can be taken at low rate of interest. On the other hand, informal sector loans are available at high interest rate.
APPEARS IN
RELATED QUESTIONS
Why is it necessary for the banks and cooperative societies to increase their lending facilities in rural areas? Explain.
How do banks mediate between those who have surplus money and those who need money?
Why do we need to expand formal sources of credit in India?
Majority of the credit needs of the _________ households are met from informal sources.
How can the problem of unemployment be eradicated in India? Explain any three ways.
“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 importance of formal sources of credit in economic development.
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.