Describe the bad effect of informal …
CBSE, JEE, NEET, CUET
Question Bank, Mock Tests, Exam Papers
NCERT Solutions, Sample Papers, Notes, Videos
Posted by Lucifer? Morningstar ? 5 years, 8 months ago
- 5 answers
Test
Related Questions
Posted by Chirag Jindal 1 year, 5 months ago
- 0 answers
Posted by Armaan Ali 1 year, 4 months ago
- 1 answers
Posted by Siddhanth Aravind 1 year, 1 month ago
- 0 answers
Posted by Shristi Pandey 1 month, 3 weeks ago
- 0 answers
Posted by Sudhanshu Choudhry 1 year, 4 months ago
- 1 answers
Posted by Vansh Singh 1 year, 4 months ago
- 1 answers
Posted by Anisha Grover 3 months, 2 weeks ago
- 0 answers
Posted by Sakshi Patel 2 weeks ago
- 1 answers
Posted by Sai Sravika Godavarthi 3 months, 3 weeks ago
- 1 answers
Posted by Kapil Dev Saroye 1 year, 4 months ago
- 0 answers
myCBSEguide
Trusted by 1 Crore+ Students
Test Generator
Create papers online. It's FREE.
CUET Mock Tests
75,000+ questions to practice only on myCBSEguide app
Yogita Ingle 5 years, 8 months ago
(i) Most of the informal lenders charge a much higher interest on loans. Thus the cost to the borrower of the informal loans is much higher.
(ii) Higher cost of borrowing means a larger part of earning of the borrowers is used to repay the loan and they have less income left for themselves.
(iii) The high rate of interest of borrowing can mean that the amount to be repaid is greater than the income of the borrower and it can lead to increasing debt and debt-trap.
(iv) People who might wish to start an enterprise by borrowing may not do so because of the high cost of borrowing.
0Thank You