Bindu wanted to start her own venture, thus, decided to borrow money from a money lender in her town. Her mother, who works for SBI, refused her to borrow money from the lender instead asked her to come to the bank and apply for the loan so that the interest charged is low. According to you, this type of loan will fall under which of the following sectors?

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 Bindu borrowed money from SBI, thus, will be considered under "Formal sector loans".