Question

why is there a need to expand formal source of credit in india?​

Answer 1

Answer:

Formal sources of credit in India need to be expanded for the development of the nation. Cheap and affordable credit is a necessity for the development of the nation. To make sure that the poor can benefit from the cheaper loans, it is important that the formal credit is distributed more equally

Explanation:

advance sorry if im wrong,thanku.

Answer 2

India is a developing country where a large number of entrepreneurs and credit seekers are there.

Explanation:

1. India being a developing country, provides initiative to young and fresh entrepreneurs who want to start or restart their businesses or careers.
2. For that, a huge amount of finances is required.
3. Moreover, developmental activities at a personal level such as education, infrastructure building, etc. also require monetary investments.
4. Since people are not so well off in terms of monetary resources, formal sources of credit should be expanded.
5. This would ensure minimum harassment of the borrowers by private moneylenders.