Jisha wants to start her own parlor in her village. So, she decides to borrow some money from her friend. According to you, this type of loan will fall under which of the following sectors?

Informal sector

People obtain loans from various sources. The various types of loans can be conveniently grouped as formal sector loans and informal sector loans. Among the former are loans from banks and cooperatives. The informal lenders include moneylenders, traders, employers, relatives and friends, etc. In the above question, as Jisha borrowed money from her "Friend", thus, will be considered under "Informal sector loans".