formal sector 1. comparatively rate of interest charge Is lower 2. collateral is must for getting loan from a formal sector 3. RBI supervises them 4. rich urban households depend on formal sector 5. ex: banks and cooperatives
Informal sector 1. higher rate of interest is charged 2. they are ready to give loans without any collateral too 3. there is no organisation to supervise them 4. poor households depend on informal sector 5. ex:moneylenders, traders, friends, retailers etc
Answers & Comments
formal sector
1. comparatively rate of interest charge Is lower
2. collateral is must for getting loan from a formal sector
3. RBI supervises them
4. rich urban households depend on formal sector
5. ex: banks and cooperatives
Informal sector
1. higher rate of interest is charged
2. they are ready to give loans without any collateral too
3. there is no organisation to supervise them
4. poor households depend on informal sector
5. ex:moneylenders, traders, friends, retailers etc
I hope this may help