Money And Credit Class 10 Notes Economics Chapter 3
What are Money and Credit?
Credit in india
A large part of the poor section of the society has to resort to the informal sources of credit because formal sources of credit involve the difficulty of procedural formalities which the poor sections of the society generally fail to meet. While the informal sources of credit give them ease of access.
But these informal sources charge a very high rate of interest which leads to very less income left in the hands of the borrower which may generally result into a debt trap for such borrowers.
Only the expansion of formal sources of credit may safeguard the weaker sections of the society from their exploitation in the hands of informal sources of credit.