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Asked by Santosini Last Modified
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Private Money lenders are unorganised sources of credit and they charge higher interest rates and may not follow legislation(law) which will put more burden on the person who took debt from them. So its considered necessary to replace the credit lending by institutional sources who follow credit giving policy as per laws.
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Private Money lenders are unorganised sources of credit and they charge differentinterest rates and may not follow the rules of RBI . Which affect the monetory system. On the individual who borrow from the money lenderd will burden person who took debt from them with higher interest rate. So its considered necessary to replace the credit lending by institutional sources who follow credit giving policy as per laws.
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