Question
Credit has its own unique role for development'. Justify the statements with argument.
✓
Answer
A major part of deposits is used as credit. Credit is an agreement in which the lenders supply the borrowers with money, goods and services in return for the promise of future payment.
Credit has its own unique role for development because of the following reasons :
i. Credit helps to increase earning and therefore a person is better off than before. Cheap and affordable credit leads to higher incomes and many people could then borrow cheaply for a variety of needs.
ii. Farmers can buy agricultural inputs with a credit or set up the small scale and cottage industries.
iii. Credit helps to earn money as well as the capital for the future.
iv. Credit helps in the development of infrastructure of the society that leads to the overall development. People could set-up new industries or trade as well. All these activities lead to the development of the country.
Credit has its own unique role for development because of the following reasons :
i. Credit helps to increase earning and therefore a person is better off than before. Cheap and affordable credit leads to higher incomes and many people could then borrow cheaply for a variety of needs.
ii. Farmers can buy agricultural inputs with a credit or set up the small scale and cottage industries.
iii. Credit helps to earn money as well as the capital for the future.
iv. Credit helps in the development of infrastructure of the society that leads to the overall development. People could set-up new industries or trade as well. All these activities lead to the development of the country.
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