Cheap and affordable credit is crucial for the country’s development

"Cheap and affordable credit is crucial for the country’s development." Justify the statement.

Answer

1. Cheap and affordable credit would lead to higher income.
2. If the credit is affordable then many people could borrow variety of needs.
3. People could grow crops, do business, set up small scale industries, etc.
4. People could set up new industries or trade in goods.
5. Banks and Cooperatives should increase their lending particularly in the rural areas, so that the dependence on informal sources of credit reduces.
6. It is also necessary that everyone receives these loans.
7. It is important that the formal credit is distributed more equally so that the poor can benefit from the cheaper loans.