Question

“Cheap and affordable credit is crucial for the country’s development.” Analyse by

giving examples​

Answer 1

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Cheap and affordable credit is crucial for the country's development due to the following factors: More lending would lead to higher incomes and encourage people to invest in agriculture, engage in business and set up small scale industries.✌️

Answer 2

Hola

Here is your answer -

• This would lead to higher incomes and many people could then borrow cheaply for a variety of needs.  
• They could grow crops, do business, set up small scale industries etc.  
• Cheap credit will enable more investment. This leads to acceleration of economic activity.
• Cheap credit would also allow weaker sections of society to access formal sector of lending and get rid of from informal moneylenders.  
• Affordable credit would also end the cycle of debt trap.  
• Cheap and easy terms of credit would inspire better investment in technology and thus increase competition.  
• They could set up new industries or trade. All these lead to the country’s development.