How cheap and affordable credit help in development of country.

1.	How cheap and affordable credit help in development of country.
Answer» Cheap and affordable credit is crucial for the country\'s development due to the following factors:\tMore lending would lead to higher incomes and encourage people to grow crops, do business and set up small scale industries.\tCheap credit means more income is left with the borrower to reinvest rather than return as interest. This leads to acceleration of economic activity.\tCheap credit would also allow weaker sections of society to enter formal sector of lending and rid them of exploitation.\tAffordable credit would also end the cycle of debt trap and lead to sustainable economic activity that would allow borrowers to invest in better technology to make their business more competitive.

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