How will you justify credit play a crucial role in economic life
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Credit plays a significant role in development, for most of the businesses, credit becomes essential for expansion at some time or the other. Without the credit, a small company cannot grow to become a bigger company. Farmers cannot go for large scale farming in the absence of credit facilities. The majority of people shall never be in a position to own houses or even buy cars without loans. Demand for these help in economy development.
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Answer:
HERE IS YOUR ANSWER DEAR..
Explanation:
Credit plays a crucial role in economic life. Some time it plays a negative role some time positive.
Positive Role:
1. Sometimes credit helps to increase earnings makes the person better than before.
2. Credit helps the person to enhance his business his economic condition.
Negative role:
1. Some time person borrow money to increase his business or for personal use.
2. If the borrower fails to pay back the borrowed money, it pushes the person in to bank trap.
To repay the loan the borrower has to sell his land or the lender detained the collateral.
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