Question

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

Answer 1

Answer:

your answer is.

Explanation:

(i) if cheap credit is not provided to the farmers they will be forced to arrange the capital at high rate which will increase the cost of production. The high cost of production put the farmers into a debt trap.

(ii) cheap and affordable credit is also must manufacturing sector to purchase raw material and other inputs.

(iii) cheap and affordable credit is required to decrease the dependency on informal sources of credit.

(iv) most of the Indian farmers are very poor so they do not have any surplus savings.

(v) cheap and affordable credit is also required for establishing new manufacturing units especially small scale units.

Answer 2

Answer:

cheap in affordable cadet important for countries development because of the following reason:

1. cheap and affordable credit would lead to the decrement of debt trap cycle
2. it will inspire people to invest in agriculture and manufacturing sector
3. it will lead to accelerate the economic activity
4. it will allow biggest section of society to assess formal sector of landing and get rid of informal sector
5. more landing will lead to higher income