Question

Name two formal and two informal source of rural credit in india. State any two advantages of formal source of credit?

Answer 1

Dear Student,

Two formal sources of rural credit in India are - cooperative societies and Grameen Banks
Two informal sources of rural credit in India are - Local Moneylenders and relatives

Two advantages of formal source of credit are -
1. Minimal and bearable rate of interest
2. free from any sort of unlawful exploitation.

Regards