Why is cheap and affordable credit important for the country's development
Money and Credit (10)Why is cheap and affordable credit important for the country’s development ? Explain any three reasons.
Answer
Importance of cheap and affordable credit for the country’s development:
- Cheap and affordable credits would lead to higher income.
- Many people could borrow for a variety of needs
- It encourages people to invest in agriculture, do business and set up small scale industries etc.
- It enables more investment which will lead to acceleration of economic activities.
- Affordable credit would also end the cycle of debt trap.
- Exam Year: 2018
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- Cheap and affordable credit is crucial for the country’s development