Question

Formal source of credit does not include _____?

Answer 1

Answer:

Government-authorized institutions that are able to lend money to individuals are structured providers of credit. Expanding formal credit sources in India is essential since informal sources are not registered and lend loans to consumers at very high-interest rates, which would be unfair and should not be practised.

Formal sources of credit do not involve employers as these activities are linked to banks and cooperatives because there is no role for all of these employers. Employers are there only to represent the employees of the bank and do the job as their employer is expected to do.