Analyse the role of credit for development.
Answers
Answer:
Explanation:
(i) It helps in increasing economic activities of the country; thus, helps in its development.
(ii) If credit is made available to the poor people at reasonable rates, they can improve their economic condition. It will further improve their standard of living and overall development.
(iii) Credit helped in the development of secondary sector or manufacturing sector.
1)easy accessible for poor people
2)poor people can start small scale business,agriculture......
3)they can invest more on education
Credit is critical to economic development and prosperity.
The availability of credit at lower interest rates encourages businesses or firms to borrow more.
Credit's Contribution to Development:
1. It is a type of agreement in which a lender lends money, products, or services to borrowers in exchange for timely payments in the future.
2. Whether or if a credit is valuable depends largely on the risks involved, as well as some assistance in the event of a catastrophe.
3. If a person takes out a loan from a bank to grow his or her production of products and services, as well as the size of his or her working area, so that the loan may be repaid on time.