What is the difference between public sector and private sector?

HI,
I don't have much knowledge about the terms used in finance institutions but as i am willing to apply for a bank loan and in that matter i talk to a counsellor and he told me that if you're willing to take a loan from private sector then you will have to pay more and if you agreed to take it from the public sector it will cost you lesser. I was damn embarassed while she was talking to me about the matter i didn't know the difference between the public sector and the private sector. If anyone knows then please let me know as soon as possible.

thankyou

Public sector includes banks and co-operative sectors. They are directly controlled by RBI. Since, RBI controls it, they offer a lower rate of interest and do not exploit the borrowers. But to avail loan from them, you must have a co-lateral, proper documentation and a good income to be able to repay the loan on time..

Private sector includes loans from local money lenders, traders, friends, relatives or indigenous banks. Since RBI has no control over it, they may offer a high rate of interest..They tend to exploit the borrowers as noted in some cases.

Its better to extend loans from public sector.. It has better provisions and schemes...
Good luck!

Quote:

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Originally Posted by Riya Sahal

Public sector includes banks and co-operative sectors. They are directly controlled by RBI. Since, RBI controls it, they offer a lower rate of interest and do not exploit the borrowers. But to avail loan from them, you must have a co-lateral, proper documentation and a good income to be able to repay the loan on time..

Private sector includes loans from local money lenders, traders, friends, relatives or indigenous banks. Since RBI has no control over it, they may offer a high rate of interest..They tend to exploit the borrowers as noted in some cases.

Its better to extend loans from public sector.. It has better provisions and schemes...
Good luck!

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I am agree With Riya's Answer.. The public sector, sometimes referred to as the state sector or the government sector, is a part of the state that deals with either the production, ownership, sale, provision, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.

Private Sector which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state.

Public sector is the sector that is controlled by government it is also called as government sector, it comprises of banks and other financial institutions like State Bank of India and its subsidiaries and Nationalised banks and other financial institutions like LIC and all, all these banks are directly covered and managed by the Apex banking system of our country i.e. Reserve Bank of India(RBI) and since it is officially controlled by RBI, you may find less rates of interest prevailing in these banks on loans as compared to private sector banks and institutions like ICICI, HSBC etc. All these banks set their own interest rates on loans they provide to be competitive in the market scenario, I suggest you to go for public sector and nationalised banks for opting for taking loans..

A private sector organisation is one which is owned by its shareholders. The shares are publicly listed (available for sale) but privately owned. the organisations main aim is therefore usually to generate money to its shareholder owners.

A public sector organisation is owned by the government (the public owns it through our right to vote and the governments representation of us). A public sector organisation can make a profit but tend not to. for example the police force is a public sector organisation and generally use tax payer money to provide a policing service. They can however charge football clubs to police events and make a small profit on this. This does not change the fact they are publicly "owned".

A private sector organisation is one which is owned by its shareholders. The shares are publicly listed (available for sale) but privately owned. the organisations main aim is therefore usually to generate money to its shareholder owners.

A public sector organisation is owned by the government (the public owns it through our right to vote and the governments representation of us). A public sector organisation can make a profit but tend not to.

Quote:

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Originally Posted by Riya Sahal

Public sector includes banks and co-operative sectors. They are directly controlled by RBI. Since, RBI controls it, they offer a lower rate of interest and do not exploit the borrowers. But to avail loan from them, you must have a co-lateral, proper documentation and a good income to be able to repay the loan on time..

Private sector includes loans from local money lenders, traders, friends, relatives or indigenous banks. Since RBI has no control over it, they may offer a high rate of interest..They tend to exploit the borrowers as noted in some cases.

Its better to extend loans from public sector.. It has better provisions and schemes...
Good luck!

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Yes Riya is talking right..

Because public banks are under the control of RBI, so the interest rates are low..

But private banks are controlled by the local persons so they borrow money from the local persons so that they take the high rate of interest..

The private sector is usually composed of organizations that are privately owned and not part of the government.
The public sector is usually composed of organizations that are owned and operated by the government.