Why is cheap and affordable credit important for the countries development? Explain.
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Answered by
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heya friend..
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here is your answer...
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Cheap and affordable credit plays a crucial role for the country’s development.
Reasons are
(i) The credit helps people to meet the ongoing expenses of production and thereby develops their businesses in agricultural and industrial areas.
(ii) For middle-class people, loans help a lot in
constructing their houses and get rid of monthly rents.
(iii) It raises the standard of living and social status of the common man by enabling them to buy automobiles, electronic items, etc.
.
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.
here is your answer...
.
Cheap and affordable credit plays a crucial role for the country’s development.
Reasons are
(i) The credit helps people to meet the ongoing expenses of production and thereby develops their businesses in agricultural and industrial areas.
(ii) For middle-class people, loans help a lot in
constructing their houses and get rid of monthly rents.
(iii) It raises the standard of living and social status of the common man by enabling them to buy automobiles, electronic items, etc.
.
plzz mark me as the brainliest..
.
follow me for more help !!
;-)
swatishree56:
Thanxx for ur help
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Ofcourse..
Answered by
3
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.
Cheap credit means more income would be left with the borrower to reinvest rather than return as interest. This leads to acceleration of economic activity.
Cheap credit would also allow weaker sections of society to enter formal sector of lending and rid them of exploitation at the hands of informal moneylenders.
Affordable credit would also end the cycle of debt trap and lead to sustainable economic activity that would allow borrowers to invest in better technology to make their business more competitive
More lending would lead to higher incomes and encourage people to invest in agriculture, engage in business and set up small scale industries.
Cheap credit means more income would be left with the borrower to reinvest rather than return as interest. This leads to acceleration of economic activity.
Cheap credit would also allow weaker sections of society to enter formal sector of lending and rid them of exploitation at the hands of informal moneylenders.
Affordable credit would also end the cycle of debt trap and lead to sustainable economic activity that would allow borrowers to invest in better technology to make their business more competitive
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