What is informal credit called?

1 answer

Answer

1120833

2026-03-18 17:10

+ Follow

Informal credit is often referred to as "microcredit" or "informal lending." It typically involves small loans provided by non-institutional lenders, such as friends, family, or local moneylenders, without formal documentation or regulatory oversight. This type of credit is commonly used in communities where access to traditional banking services is limited. Informal credit can also include practices like borrowing from informal savings groups or cooperative societies.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.