Analyse the role of credit for development.
Answer in about 50 words :-)
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Development is sustained by a proper credit policy. By giving loans to agriculture, industry and trade, banks provide them with the necessary funds for carrying on their business without problems relating to finance.
This results in increased production and services, more employment and profits.
This results in increased production and services, more employment and profits.
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Well the role of credit to borrowers in a country is really very important for the development of the economy of a country .
The banks mediate between those who have surplus funds and give to those who are in need of these funds.
When the banks and other informal sources give loans as credit to the borrowers in some positive outcomes it results in the increase of the incomes and profits of the borrowers in his/her investment which leads to the development of not only the borrower but also the economy of the country by increasing the total national income and higher standard of living.
The banks mediate between those who have surplus funds and give to those who are in need of these funds.
When the banks and other informal sources give loans as credit to the borrowers in some positive outcomes it results in the increase of the incomes and profits of the borrowers in his/her investment which leads to the development of not only the borrower but also the economy of the country by increasing the total national income and higher standard of living.
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