Q12 of 26 Page 3

Give any two examples of the informal sector of credit.[CBSE 2018]

There are many different sources that provide credits like banks, cooperatives, money lenders etc.

These are classified as formal and informal.


The loan that is taken from relatives, moneylenders, friends etc is called the informal sector of credit. They provide the credit generally at a higher interest rate than the formal sector.


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