Question

Credit can push the borrowed into a
situation from which recovery, is very
painful. Explain with the help of
example.​

Answer 1

Answer:

Credit Can Push The borrowed into a situation where recovery is very painful. This happens mostly in rural areas.

For e.g Swapna takes loans from moneylender to grow groundnut, hoping that her harvest would repay the loan. Midway through the season the crop is hit by pests and the crop fails. She is unable to repay the moneylender and the debt grows over the year into w larger amount.

in this situation, because of the crop failure, credit pushes Swapna into a debt-trap. Here condition becomes worse than before.

Hope it helps you

Hope it helps youPlease mark it as brainliest