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How did cheap credit can cause a devlopment in a simple man life |
| Answer» \tCheap 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 invest in agriculture, engage in business and set up small scale industries.\tCheap credit means more income would be 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 at the hands of informal moneylenders.\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. | |