Explain with an example how credit plays a vital and positive role for development.

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answered Dec 4, 2019 by Annu03 (52.4k points)
selected Dec 5, 2019 by Kasis

Best answer

Credit plays a vital and positive role in the following ways:

It helps people from all walks of life in setting up their business, increase their income and provide support to their family needs.
It makes it possible for the people to own or construct their own house and get relief from monthly rent.
People often avail themselves of credit to purchase luxury items like vehicles, A.Cs, etc., which further raises their standard of living.
It enables us to invest in human resource. People take credit for education, training, etc. which allows enrichment of human resource.
For example, Salim availed credit facility to meet the working capital needs of production. It helped him to meet the ongoing expenses of production, complete production on time, thereby, increasing his income.