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what are two different credit situations

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what are two different credit situations

    • Posted by Ayush Ranjan 7 years, 9 months ago

    CBSE > Class 10 > Social Science
    • 1 answers

    Govind Singh 7 years, 5 months ago

    Credit arrangements can be divided into two categories. These are as follows:




    • Formal Sector- It includes banks and cooperatives that extend loans to households for entrepreneurship and other personal needs. The rates of interest charged by them are low.

    • Informal Sector- It includes moneylenders, traders, employers, relatives, and friends. The moneylenders generally charge at a higher rate of interest.


    2Thank You

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