Moneylenders and ____ are the informal sources of credit.

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Moneylenders and Traders are the informal sources of credit.
Informal sources of credit consist of moneylenders, traders, rich employers, landowners, etc. They provide loans at a very high rate of interest, which is very expensive for the borrowers. They only require collateral or security in the lack of loan default. They do not have any external control over the lending practices. It is suitable for poor households as they do not have to follow certain kinds of procedures and various types of documentation. They usually exploit people by trapping them in debt traps. Because the rate of interest is so high, they need to take another loan to repay the previous one.

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