Question

"Cheap and affordable credit is essential for poor households both in rural and urban areas." in the light of the above statement explain the social and economic values attached to it.
what the social and economic values for 5 marks to be written in the FA3 exam.
plz.....someone answer fast .............plz...........

Answer 1

The economic value attached to cheap and affordable credit is that it help the poor in rural and urban households to start self employment ventures and continue economic activities. This helps in increasing their income earning capacity and increases their living standard. The social aspect attached to affordable credit to poor is that it helps in reducing their dependence on informal sources of credit.

Answer 2

• Cheap and affordable credit is essential for poor households both in rural and urban areas because it has various benefits to the people who do not have the means to do something.
• This would improve the condition of the people by providing cheap and affordable home loans to them for their families.
• This would increase the borrowing capacity which would, in turn, help the agricultural as well as small-scale industries.
• This could also remove the problem of unemployment and it will help in the economic growth of the country.