Question

How does credit play a vital and positive role for development? Please answer this fast.....

Answer 1

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Answer 2

Credit, or loan, is when a person borrows money, goods or services from another person with a promise of future repayment.

Credit plays a vital and positive role as it helps people who are in need of money to fulfil their needs.

For example, Salim, a producer of shoes received an order of shoes. He took a loan from a bank to purchase raw materials. He is able to fulfil the order. He gets a lot of profit, repays the loan with interest and hence benefits. Credit plays a positive role in this situation.

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