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Plz tell the project on informal …

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Plz tell the project on informal sector credit advantages and disadvantages

    • Posted by Lakshay Khapra 7 years, 10 months ago

    CBSE > Class 10 > Social Science
    • 1 answers

    Kannu Kranti Yadav 7 years, 10 months ago

    Informal sector of credit means taking loan from friends,relatives or money lenders It is mainly practiced in rural areas because banks are not able everywhere and if they are then they need proper documentation . Advantages of informal sector are. 1.borrower do not have to provide any collateral or documents. 2 they are not maintained by RBI or central govt. Disadvantages of informal sector are. .1 .They charge a high interest on loans which the people can't pay . 2. It pushes them into debt trap from which recovery is very pain ful

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