What are the proportion of farmers who take loan from informal sector why do they prefer informal source of credit
About 48% of the farmers taken loan from informal sources .The informal sources of loan are:
Informal sources are :-
Land lords , and moneylenders.
Farmers prefers the informal sources more because they provide loan more easily than formal sectors.The loan procedure in formal sorces is cumbersome and time consuming.In formal sources they also need security like collateral etc which are not needed in informal sources of credit.
Informal sources are :-
Land lords , and moneylenders.
Farmers prefers the informal sources more because they provide loan more easily than formal sectors.The loan procedure in formal sorces is cumbersome and time consuming.In formal sources they also need security like collateral etc which are not needed in informal sources of credit.