why there is great demand of loan or credit? explain the reasons
Answers
Answer:
There is a great demand for loans and credit because with the help of this mechanism the debtors are able to fulfill their monetary needs at a given point in time. ... Credit also helps the creditors to earn on their excess cash.
Answer:
(1) Credit plays a vital and e role for the country’s development. It helps in increasing the economic activities of the borrowers.
(2) It helps to meet the working capital needs of production.
(3) It helps to meet the ongoing expenses of production, complete production on time and thereby increasing earnings.
(4) It helps in growing crops, doing business, setting up small-scale industries, trade in goods, etc.
(5) A large number of transactions in our day-to-day activities involve credit in some form or the other.