Explain Two Points of Differences Between Formal and Informal Sources of Credit.

Posted on Updated on

The two points of differences between formal and informal sources of credit are:

  1. Formal sector credit charge less rate of interest whereas informal sector credit charges very high rate of interest.
  2. Formal sector credit is easy to repay whereas the informal sector credit is difficult to repay.

Related posts:

  1. When Does Credit Push the Borrower Into a Debt-Trap? Explain With the Help of an Example.
  2. Why the Deposits in the Banks Are Called Demand Deposits? What Are the Benefits of Deposits With the Banks?
  3. Describe Any Four Advantages of Self-Help Groups for the Poor.
  4. What Are the Two Categories of Sources of Credit? Mention Four Features of Each.

Leave a Reply

Your email address will not be published. Required fields are marked *