Why are service conditions of formal sector loans better than informal sector
Money and Credit (10)Why are service conditions of formal sector loans better than informal sector ? Explain.
Answer
Formal sector are better than informal sector:
- Low interest rate
- Transparency
- Supervision by the Reserve Bank of India on the functioning of the formal sector.
- No use of unfair means for getting the money back
Exam Year:
2019
Related Questions
- Give one example each of modern currency and older currency
- How does money act as a medium of exchange
- What is meant by double coincidence of wants
- Give any two examples of informal sector of credit
- Why is cheap and affordable credit important for the country's development
- Which one provides assured payment