Question

Credit availability in india features, merits and demerits ?​

Answer 1

Answer:

Credit in India need collateral and therefore not much advantaged for poor

Answer 2

Credit availability in india features, merits and demerits:

Features:

Credit control is an important tool used by Reserve Bank of India, a major weapon of the monetary policy used to control the demand and supply of money (liquidity) in the economy. Central Bank administers control over the credit that the commercial banks grant. Such a method is used by RBI to bring "Economic Development with Stability". It means that banks will not only control inflationary trends in the economy but also boost economic growth which would ultimately lead to increase in real national income stability. In view of its functions such as issuing notes and custodian of cash reserves, credit not being controlled by RBI would lead to Social and Economic instability in the country.

Merits:

• Easy access to credit: The biggest advantage of a credit card is its easy access to credit.
• Building a line of credit. Credit cards offer you the chance to build up a line of credit.

Demerits:

• Blowing Your Budget -- The biggest disadvantage of credit cards is that they encourage people to spend money that they don't have.
• High Interest Rates and Increased Debt -- Credit card companies charge you an enormous amount of interest on each balance that you don't pay off at the end of each month.

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