Chapter : 3. Money and Credit
Sectors Of Credit In India
Sectors Of Credit In India
1. Formal lender resources :
These include those resources which are controlled by the government. Banks and Cooperatives Bank falls in to the formal category. The rate of interest is very low.
2 . Informal lender resources :
These include money lenders, traders, relatives and friends.
Difference between formal and informal credit
Unequal distribution of formal sector loans :
Even after more than 50 years of independence most of rural and poor people still depend on non formal resources for their loan requirements. 85 % of the loan taken by poor house holds in the urban areas are from informal sources. The poor households have to pay a heavy price for borrowing.
1. Formal lender resources :
These include those resources which are controlled by the government. Banks and Cooperatives Bank falls in to the formal category. The rate of interest is very low.
2 . Informal lender resources :
These include money lenders, traders, relatives and friends.
Difference between formal and informal credit
Unequal distribution of formal sector loans :
Even after more than 50 years of independence most of rural and poor people still depend on non formal resources for their loan requirements. 85 % of the loan taken by poor house holds in the urban areas are from informal sources. The poor households have to pay a heavy price for borrowing.
Trending Articles & Blogs
- Physics Tutor, Math Tutor Improve Your Child’s Knowledge
- How to Get Maximum Marks in Examination Preparation Strategy by Dr. Mukesh Shrimali
- 5 Important Tips To Personal Development Apply In Your Daily Life
- Breaking the Barriers Between High School and Higher Education
- 14 Vocational courses after class 12th
- Tips to Get Maximum Marks in Physics Examination
- Get Full Marks in Biology Class 12 CBSE
Download Old Sample Papers For Class X & XII
Download Practical Solutions of Chemistry and Physics for Class 12 with Solutions
Recent Questions Asked
- Newton’s laws of motion asked by Dr. Mukesh Shrimali
- Process of nutrition in Amoeba asked by Rajiv Sharma
- Importance of studying physics subject in school after 10th asked by Rajiv
- Refraction Through Prism in Different Medium asked by Kirti Sharma
- Ratio and Proportion Question asked by Education Desk
- Explain all the 12 tenses with example asked by Qwerty
- Refraction Through Prism in Different Medium asked by Seema Shrimali