“The rich households are availing cheap credit from formal lenders whereas the poor house holds have to pay a heavy price for borrowing.” -SST 10th

“The rich households are availing cheap credit from formal lenders whereas the poor house holds have to pay a heavy price for borrowing.” -SST 10th
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. The formal sector still meets only about half of the total credit needs of the rural people. . The remaining credit needs are met from informal sources. . Most loans from informal lenders carry a very high interest rate and do little to increase the income of the borrowers. . Thus, it is necessary that banks and cooperatives increase their lending particularly in the rural areas, so that the dependence on informal sources of credit reduces. . While formal sector loans need to expand, it is also necessary that everyone receives these loans. . At present, it is the rich households who receive formal credit whereas the poor have to depend on the informal sources.
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Description : What are differences between formal and informal sources of credit? -SST 10th

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Why do we need to expand formal sources of credit in India? Give three reasons. -SST 10th

Description : Why do we need to expand formal sources of credit in India? Give three reasons. -SST 10th

Last Answer : . The cost of informal loans is much higher and often leads to a debt trap. Also, people who might wish to start a new enterprise by borrowing may not do so because of the high cost ... important that the formal credit is distributed more equally so that the poor can benefit from the cheaper loans.

Prove with an argument that there is a great need to expand formal sources of credit in rural India. -SST 10th

Description : Prove with an argument that there is a great need to expand formal sources of credit in rural India. -SST 10th

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Why do we need to expand formal sources of credit in India ? Give three reasons. -SST 10th

Description : Why do we need to expand formal sources of credit in India ? Give three reasons. -SST 10th

Last Answer : 1. The formal sector i.e. the banks and the cooperatives need to engage more in the lending activities because of the disadvantages posed by the informal sector including high rates of ... the development aspect of a country. Therefore, affordable credit is crucial for a country's development.

Why do we need to expand formal sources of credit in India? -SST 10th

Description : Why do we need to expand formal sources of credit in India? -SST 10th

Last Answer : Formal sources of credit in India provide loans to individuals at far cheaper rates than informal sources of credit. This helps to increase their income and they are able to repay the principal amount ... income. It will lead to more production. This helps in the economic development of a country.

Which are the two major sources of formal sector credit in India ? -SST 10th

Description : Which are the two major sources of formal sector credit in India ? -SST 10th

Last Answer : The two major sources of formal sector credit in India are - commercial banks and cooperative societies. We need to expand formal sources of credit due to following reasons : (a) Informal sources of ... -traps. (b) Formal sources of credit are cheaper and thus they help in country's development.

Differentiate between formal and informal sources of credit. -SST 10th

Description : Differentiate between formal and informal sources of credit. -SST 10th

Last Answer : Difference between Formal and Informal Sources

Mention four characteristics each of the formal and informal sources of credit in India. -SST 10th

Description : Mention four characteristics each of the formal and informal sources of credit in India. -SST 10th

Last Answer : Features of formal sources of credit are : (a) Formal sources of credit are provided by banks and cooperative societies to the borrowers. (b) Reserve Bank of India (RBI) governs the ... . (d) They generally charge higher rates of interest and exploit the borrowers for their own benifits.

Which segment of the society receives formal credit? -SST 10th

Description : Which segment of the society receives formal credit? -SST 10th

Last Answer : It is the richer segment of society which receives formal credit.