Question

Why is cheap and affordable credit important for the country development?
Explain with 3 reasons

Answer 1

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.

Answer 2

Cheap and affordable credit is crucial for the country's development due to the following factors: ... 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.