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+1 vote
in Social Science by (91.4k points)

Why is cheap and affordable credit important for the country’s development? Explain any three reasons.

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2 Answers

+2 votes
by (80.2k points)

Importance of cheap and affordable credit for the country’s development –

(i) Cheap and affordable credits would lead to higher income.

(ii) Many people could borrow for a variety of needs

(iii) It encourages people to invest in agriculture, do business and set up small scale industries etc.

(iv) It enables more investment which will lead to acceleration of economic activities.

(v) Affordable credit would also end the cycle of debt trap.

(vi) Any other relevant point.

Any three points to be explained.

0 votes
by (49.1k points)

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

Reasons are:

(i) Cheap and affordable credit leads to higher incomes and encourage people to invest in agriculture, engage in business and set up small scale industries.

(ii) Cheap credit reduces the dependence on informal sources.

(iii) Affordable credit also ends the cycle of debt trap and lead to sustainable economic activity.

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