Why is cheap and affordable credit important for the country's development? Explain any 3 reasons
Answers
Answered by
60
Hi there!
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 grow crops, do business and set up small scale industries.
♦ Cheap credit means more income is 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.
♦ 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.
[ Thank you! for asking the question. ]
Hope it helps!
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 grow crops, do business and set up small scale industries.
♦ Cheap credit means more income is 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.
♦ 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.
[ Thank you! for asking the question. ]
Hope it helps!
Answered by
5
ANSWER..
Cheap and affordable credit place and crucial role for country's development
reasons are...
The credit help people to meet one going expenses in the production and thereby develop their business and agricultural and industrial areas
for middle class people loans helps a lot of in constructing the houses and get rid of monthly rent
it relates the standard of living and social status of the common man by eligible them to buy automobiles electric items
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