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Asked by Sahiba Last Modified
Answer 
Srishti Luthra
Currently into my studies and want to teach students side by side on saturday's & sunday's.
People obtained loans from various sources.
The various sources of loans categories into
(i) Formal sector loan
(ii) Informal sector loan
The formal sector loans are given by banks and cooperatives. The informal lenders include money lenders, traders, employers, relatives friends etc.
Poor people and workers get much of their loans from the informal sectors, which is not only exploitative but also charges very high interest rate. These make the poor people and worker to fall back in poverty.
The measurer to make formal sector loan beneficialfor poor formers and workers are
(i) The formal sector like Banks and cooperatives should lend more to poor people and worker, particularly in rural areas.
(ii) The formal sector should provide cheap and affordable credit.
(iii)The formal sector should ensure that every one receives loans.
(iv)Providing Self Help Group Bank Linkage.
(v) There should be more number of cooperatives and banks in rural areas.
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