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Q.

The ____  are moneylenders, traders, employers, relatives and friends.


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Detailed Solution

The informal sources are moneylenders, traders, employers, relatives and friends.There are two types of sources from which one can avail of the facility of loan: formal and informal. Informal sources of loans are preferred by people living in rural areas and those who are poor. The informal or unorganised sources of a loan are moneylenders, traders, employers, relatives and friends, and so on. These loan providers give people loan facilities at a relatively expensive rate than the formal sources of loans. Still, borrowers do not have to keep a property in the form of a mortgage or collateral or security against the amount of loan taken, and they don't need to have good creditworthiness.
 
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