Choose the given statement is True/False:

Legal recourse in cases of informal credit sector is possible.

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

True

False

answer is B.

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

The above given statement is false.
One of the significant drawbacks of the informal sector is that it does not lie under the purview of the legal structure of India. However, even if it is considered, several factors, such as lack of proper legal documentation and records result will be of no help for resolution. The informal sector is very accessible but has a lot of cons that negatively impact the person taking a loan. For example, a person might be caught up in repaying the interest amount post the principal amount which can cause the person to be caught up in a vicious circle of debt.
The correct statement is “Legal recourse in cases of the informal credit sector is impossible”.

Watch 3-min video & get full concept clarity