Question

Why is cheap and affordable credit important for a country's development? Explain with reasons.

Answer 1

Answer:

Cheap and affordable credit is crucial for the country's development due to the following factors: More lending would lead to higher incomes and encourage people to invest in agriculture, engage in business and set up small scale industries.

Answer 2

Cheap and affordable credit

Explanation:

Cheap and affordable credit is important for a country’s development due to the following reasons:

1. Affordable credit will encourage people to expand their business and increase production. Increased production will lead to increased income and cheaper products as the cost of production will go down due to scale.
2. People who produce, will add more process and sell marketable products along with raw material. A loan will help them buy the required machinery to process the raw material.
3. They could expand their market and add transport to newer markets by availing loan to buy transportation vehicles.