Question

credit may be useful or may put the creditor into dept step explain

Answer 1

Heya☺

It has both advantage as well as disadvantage

Credit may be useful as it can create employment opportunities or help the small workers at the time of scarcity.

Credit may lead to debt trap when the peasants or people who are unable to repay it due to their loss.

Answer 2

Answer:

Explanation:

Credit is a working capital which is required for production . The credit helps the farmers to meet the ongoing expenses of production complete production on time , thereby increase in earning credit therefore play a positive role in this situation

The failure of crop may mush the farmer into a situation where recovery is painful In this case farmer need to sell a part of land to repay loan

Weather the credit would be useful or not depends on the risks in the situation