Adverse effect of unregulated credit markets

Unregulated credit means loan or finance given by non govt. agencies . All finance brokers , money lenders and unregulated NBFIs are included in it . There are many adverse effects on money market . These agencies are out of control so , they are blackmailing to money borrowers .
There is no effect of control policies of Central bank on these unregulated credit market . So , they charge high rate of interest .

There way of recovering of loan is very bad . They have their own gang for collecting the money . So ,I suggest you to see whether organisation is registered under RBI before taking any loan .

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