BANKING AFFAIRS

Detailed explanation-1: -The local moneylenders, relatives, friends and finance companies that grant a loan to the people in need at higher interest rates are informal lenders of credit.

Detailed explanation-2: -Informal sources may produce publications in the form of blogs, personal websites, and related “non-official” documents. For example, a retired professional football player may produce a blog about his health challenges since retirement, and some of that information may be related to head injuries.

Detailed explanation-3: -Informal credit sector provides loan to small farmers in rural areas and for lower income groups and small scale enterprises in urban areas. Availing credit facility is very simple; non-bureaucratic and few written documents. Literacy is not a requisite. It carries a very high rate of interest.

Detailed explanation-4: -Cooperative society is not an informal source of credit but formal.