Question

explain with the example how credit plays a vital and positive role for development?

Answer 1

Credit plays a very vital and positive role in development.......... Examples are------- Credit is helpful in the field of business. A person can avail loan to start his/her business and can too expand it in the future if its running quite well. Personal credit or loan can also be provided like house loan or car loan, it satisfies the need of common people. Credit can also be provided to informal sectors like SHGs.

Answer 2

Explanation:

Credit plays a vital role in economic growth and development.

Credit availability at cheaper rates of interest encourages the business or firms to borrow more.

Borrowing more money will facilitate the growth of business or increase in production in the economy.

So, credit supply is the key factor for economic development.