cheap ans affordable credit is crucial fir a countrys de slope xplain
Answers
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.
Cheap credit means more income would be left with the borrower to reinvest rather than return as interest. This leads to acceleration of economic activity.
Cheap credit would also allow weaker sections of society to enter formal sector of lending and rid them of exploitation at the hands of informal moneylenders.
Affordable credit would also end the cycle of debt trap and lead to sustainable economic activity that would allow borrowers to invest in better technology to make their business more competitive.
Answer ✧・ﾟ:*
Cheap and affordable credit is crucial for this reasons :-
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- Many people want to start an enterprise by borrowing may not do because of high cost of borrowing.
- Banks and cooperative societies need to lend more.
- This would lead to higher income and many people could then borrow cheaply for a variety of needs.
- They could grow crops, do business or set up small scale industries.
- It raises the standard of living and social status of the common man by enabling them to buy automobiles, electronic items, etc.
- In the rural areas, credit helps in the development of agriculture by helping farmers purchase seeds, fertilisers, pesticides and farming machinery.
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