Question

Why is credit a crucial element in the economic development?

Answer 1

➡️Cheap and affordable credit plays a crucial role for the country’s development.✔️

➡️There is a huge demand for loans for various economic activities.✔️

➡️The credit helps people to meet the ongoing expenses of production, complete production on time, and thereby increase their earnings.✔️

➡️The main benefits from derived credit for developmental activities are :✔️

➡️1. Credit plays a major role in the development of a country of creating better facilities for agricultural and industrial activities.✔️

➡️2. Credit helps people from all walks of life in setting up their business and increase their earnings.✔️

➡️3. For middle-class people, loans help a lot in constructing their houses and get rid of monthly rents.✔️

➡️4. Credit or loans help in raising the standard of living and social status of the common man by enabling them to buy cars, scooters, televisions and other products.✔️

Answer 2

Hey there,

Credit is a crucial element in the economic development. Cheap and affordable credit plays a crucial role for the country’s development. Following are the reasons why,

The development of a country is enhanced due to the creation of agricultural/industrial facilities.

It is used by the people belonging to all kinds of backgrounds including employees and employers.

Loans and credits help middle class and lower class people to bring about major changes in their lives such as buying a car, constructing a house and etc.

The standard of living is increased because it enhances the buying power people and therefore directly has a positive impact on the economy.

I hope the answer is helpful.

Thanks