How is cheap and affordable credit for all, crucial for the country’s development nowadays?

How is cheap and affordable credit for all, crucial for the country’

1.	How is cheap and affordable credit for all, crucial for the country’s development nowadays?
Answer» Borrowing at higher rates of interest makes borrowers to have left with less income for themselves. In some cases it may be more than his income and leading to debt trap. For this reasons, banks and cooperatives need to lend more. As these offer loans at lower rate of interest, borrowers use them for a variety of needs. Thus the availability of cheap and affordable credit for all is crucial for the country’s development nowadays. ▪Cheap credit will enable more investment. ▪Affordable credit would end the cycle of debt trap. ▪This would lead to higher income and many people could then borrow cheaply for various needs