Importants of credit. 2 points
Answers
Answer:
if you asking about credit card it is important in today's life. if you haven't any credit and debit card you can't pay the bill of any malls and online shopping. in India very very most places don't receive the cash on delivery they connect with you Google pay or credit card and also debit card to Pay the bill and bring the bill so this credit card is so important .but if you asking about credit of anything and this is also very important because if if you do anything and you haven't the credit of the word which you do then you feel so bad because nyou do this work but you haven't the credit of this work so now this time you want to prove your work which you do to bring the credit of the work so that's the importance of credit for a work
Answer:
Credit leads to an increase in spending, thus increasing income levels in the economy. This in turn leads to higher GDP (gross domestic product) and thereby faster productivity growth. If credit is used to purchase productive resources, it helps in economic growth and adds to income.
Credit plays a crucial role in a country’s development. By sanctioning loans to developing industries and trade, banks provide them with the necessary aid for improvement.
This leads to increase in the production, profits and employment. However, caution must be exercised in the case of loans from the informal sector which include high interest rates that may be more harmful than good.
For this reason, it is important that the formal sector gives out more loans so that borrowers are not duped by moneylenders, and can ultimately contribute to national development.
For example- a loan given to a fresh post-graduate for setting up a business might contribute to employment generation, infrastructure development in the near future.
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