Question

credit has its own unique role for development or cheap and affordable credit is crucial for the economic development justify.​

Answer 1

Answer:

Cheap and affordable credit is crucial for the country's development due to the following factors: (i)More lending would lead to higher incomes and encourage people to grow crops, do business and set up small scale industries. (ii)Cheap credit means more income is left with the borrower to reinvest rather than return as interest. This leads to acceleration of economic activity. (iii)Cheap credit would also allow weaker sections of society to enter formal sector of lending and rid them of exploitation. (iv)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.