As per the reports published in various journals and newspapers, the small borrowers in rural areas still prefer to take informal route for their credit needs. Which of the following is the informal route of credit in the financial sector? [Punjab & Sindh 2011]

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

As per the reports published in various journals and newspapers, the “small borrowers” in rural areas still prefer to take informal route for their credit needs. Which of the following is the “informal route” of credit in the financial sector? [Punjab & Sindh 2011]

A	Credit cards
B	Loan against gold from financial institute
C	Debit cards
D	Money lender

Explanation:

Detailed explanation-1: -If i write here for this financial financial decisions-so if i right here for this, this is the answer available: an option number b, which, among the following options, will be cheapest: source of credit in rural areas, so co operate society. So we are going to right here, operative society, operative citas.

Detailed explanation-2: -Answer: Moneylenders are the most dominant amongst sources of credit for rural households. They constitute an informal source of credit. They charge a very high rate of interest on loans as they do not require any collateral. They are the most convenient source of credit in the rural areas.

Detailed explanation-3: -The Development of Present Credit System Loans were granted at very high-interest rates which ultimately pulled defaulters into a debt trap, robbing them out of credit. To stop this exploitation NABARD was established to provide rural areas with easy credit.

There is 1 question to complete.