why is cheap and affordable credit important for the country's development explain any three reasons
Answers
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.
Explanation:
cheap and affordable credit is crucial for the country's growth and economic development. credit is in great demand for various kind of economic activity— big or small investment to set a business, buying cars, houses etc.
- in rural area created helps in a development of agriculture by providing funds to farmers to buy seeds, fertilizers, expensive pesticides.
- manufacturers need created for buying raw material for to meet ongoing expenditure of production. credit helps in the purchase of plant, machinery, equipment, etc.
- some people may need to borrow for personal all family need like marriage, hospitalization, etc.
Thus, cheap and affordable credit is crucial for the country's growth and economic development