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प्रश्न
"Cheap and affordable credit is crucial for the country's development." Assess the statement.
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उत्तर
Cheap and affordable credit is crucial for the country's development due to the following factors:
- More lending would lead to higher incomes and encourage people to grow crops, do business and set up small scale industries.
- Cheap credit means more income is left with the borrower to reinvest rather than return as interest. This leads to acceleration of economic activity.
- Cheap credit would also allow weaker sections of society to enter formal sector of lending and rid them of exploitation.
- Affordable 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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संबंधित प्रश्न
Which of the following is not an informal source of credit?
In which country is the Grameen Bank meeting the credit needs of over 6 million poor people?
Which is not the main source of credit from the following for rural households in India?
Formal Sources of credit include ______.
Identify the formal source of credit.
Rate of interest charged by moneylenders as compared to that charged by banks is ______.
Cheap and affordable credit is crucial for ______.
Most loans from informal lenders carry a very high interest rate and do little to ______.
Distinguish between formal and informal sources of credit.
A farmer has borrowed money from a money lender at a high rate of interest, as he could not pay the interest, he was forced to borrow from another landlord to settle the amount for the interest borrowed to the money lender. State the consequences he may face in this situation.
