Question

why is cheap and affordable credit crucial for country's development? ​

Answer 1

Answer:

It is essential so that every person could take credit (Loan). Credit on low rate of interest can make people easy to repay it.

Explanation:

The credit helps to meet the outgoing expenses of production, complete production on time, and thereby increase the earnings. people take loan for their requirements and these things develop surrounding also. Hence it increases the GDP and the nation's economy.

Answer 2

cheap and affordable credit

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1. If cheap credit is not provided to the farmers then they will be forced to arrange capital at high rate which will increase the cost of production. The high cost of production put the farmers into debt trap.

2. For manufacturing sector to purchase raw materials and other inputs.

3. required to decrease the dependency on informal sources of credit.

4. Most of the Indian farmers are very poor so they don't have any surplus savings.

5. for establishing new manufacturing units especially small scale units

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