what is the credit and explain 500 words and not help Google jo khud se answer dega mai usko brainlist dunga
Answers
credit means to borrow the money from the bank with some intrest and the person who take lone from the banks is know as borrowers.
some times credit play a vital and positive role take a example to understand the positive role of credit ,a person name ali who is tailor and the ali received a order of 2000 cloths because it was festival time so in order to complete his work he obtain lone from the bank to meet the demand the fine cloth
at the end of festival he finished his work and make a good profit and repay his money that he borrowed in this case credit play a positive and vital role for ali but we are study a idoms that a coins have two side so credit have also positive and negative role to understand his take a example
a women his name us sara she work in the agriculture so in order to grow the good and large amount of crop she take lone as a cash from the bank but due to bad weather she lost her crop and she did not get profit and also she was unable to repay his lone so she also lost her field to repay his lone so in this sistution the credit play a negative role .
we can get credit from formal as well as informal sector but in rular area the people prefer take money from informal sector that is money lender big farmers,land owners ,rich person because they have not demand to give any collateral but I suggest that we take credit from formal sector because this will helpful for the development for the country
the word credit come from creditum which means believe or trust in simply we can said that the credit means to take any value with some interest and after some time to pay the credit with some interest
terms of credit ÷
every loan agreement specifies an interest rate which the borrower must pay to the lender along with the repayment of the principal addition ,lenders may demand collateral against loans collateral is an asset that the borrower owns ( such as land building ,vehicle ,livestock deposit with banks) and uses this as a guarantee to a lender until the lone is repaid .
if the borrower fails to rep