3.8 - FORMAL SECTOR CREDIT IN INDIA
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
What is the difference between formal and informal credit?
💡 Hint: Think about where each type of credit comes from.
Name one advantage of Self-Help Groups.
💡 Hint: Consider what SHGs enable individuals to do together.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What type of credit requires collateral?
💡 Hint: Recall the requirements for obtaining loans.
True or False: Informal loans often have lower interest rates than formal loans.
💡 Hint: Think about why borrowers might prefer different loan types.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Ritu is a small farmer who faces difficulty accessing formal loans due to lack of collateral. Analyze her situation and propose how an SHG could benefit her.
💡 Hint: Consider the collective power of SHGs.
Evaluate the socio-economic impact of relying solely on informal lenders in a community. What long-term consequences could emerge?
💡 Hint: Think about the broader community effects beyond individual impacts.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.