Single Answer MCQ
Q-00015896
Which of the following is a disadvantage of borrowing from informal lenders?
1
They offer loans without collateral
2
They often charge higher interest rates
3
They provide more flexible repayment options
4
They can help build credit history
Answer and Solution
Answer
B. They often charge higher interest rates
Solution:
Informal lenders often charge higher interest rates, making loans more expensive and risky for borrowers compared to formal channels.
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