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Indian Rural Credit

Informal sect...

Question

Informal sector loans include _________.

A

NABARD

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B

State Bank of India

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C

Money lenders

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D

Both (A) and (B)

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Solution

The correct option is C Money lenders
Money lenders give a loan at a higher rate. The local moneylenders, relatives, friends and finance companies that grant a loan to the people in need at higher interest rates are informal lenders of credit.

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Fig 6.7

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