Formal sector loan required collateral where as informal sector loans does not require collateral. Formal sector loans has a low rate of interest where as informal sector loans has a very high rate of interest. Formal sector loan: They are supervised by the Reserve bank of India.
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while informal includes friends, relatives, and moneylenders
Formal sector loan required collateral where as informal sector loans does not require collateral. Formal sector loans has a low rate of interest where as informal sector loans has a very high rate of interest. Formal sector loan: They are supervised by the Reserve bank of India.