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प्रश्न
Explain the importance of formal sector loans in India.
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उत्तर
Formal sector of credit refers to the loans taken from banks and cooperative societies. Forma sector charges reasonable rate of interests, seeks repayment within a stipulated time with a degree of flexibility with proper documentation.
संबंधित प्रश्न
Explain with an example, how credit plays a vital and positive role for development.
Which one of the following is a formal source of credit?
Why is it necessary for the banks and cooperative societies to increase their lending facilities in rural areas? Explain.
How do banks mediate between those who have surplus money and those who need money?
Majority of the credit needs of the _________ households are met from informal sources.
__________costs of borrowing increase the debt-burden.
The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.
|
Occupations |
Reason for needing a Loan |
|
Construction worker |
- |
|
Graduate student who is computer literate |
- |
|
A person employed in government service |
- |
|
Migrant labourer in Delhi |
- |
|
Household maid |
- |
|
Small trader |
- |
|
Autorickshaw driver |
- |
|
A worker whose factory has closed down |
- |
Next, classify the people into two groups based on whom you think might get a bank loan and those who might not. What is the criterion that you have used for classification?
Answer the following question.
Describe the bad effects of informal sources of credit on borrowers.
Explain any three reasons for the banks and cooperative societies to increase their lending facilities in rural areas.
Answer the following question.
Why is cheap and affordable credit important for the country's development? Explain any three reasons.
